Is a Local Accountant Better Than a National Online Firm?

Introduction

Choosing the right accountant is an important decision for any business owner. Today, you can work with a local accountant you can meet face to face, or you can choose a national online firm that operates entirely through cloud software and email. Both options have advantages, and the best choice depends on your business size, preferences, and how you like to communicate.

This article explores the pros and cons of local accountants and national online firms, helping you decide which is better suited to your business.

What a Local Accountant Offers

A local accountant provides traditional, personalised service. You can visit their office, discuss your accounts in person, and build a long-term relationship based on trust and familiarity. Many small business owners appreciate having someone nearby who understands their local market and business environment.

Advantages of a local accountant:

• Personal connection: You can meet regularly and develop a stronger working relationship.

• Local knowledge: They often understand local business networks, grants, and council tax regulations.

• Tailored advice: They can visit your business premises and give practical recommendations.

• Direct contact: You usually deal with the same person each time, not a call centre.

Local accountants tend to specialise in supporting small businesses, tradespeople, and professionals within a specific area. Their close relationships with clients often mean they spot problems early and offer timely advice.

Potential downsides:

• Fees may be higher than online firms because local practices have higher overheads.

• Smaller firms may offer fewer digital tools or online portals for document uploads.

• Availability can be limited during busy tax periods if they manage many local clients.

What a National Online Firm Offers

National or online accountancy firms use cloud software and digital communication to serve clients across the UK. Instead of face-to-face meetings, they communicate by phone, video call, email, or app.

Advantages of an online firm:

• Lower fees: Online firms often operate at scale, keeping costs down and offering competitive fixed-price packages.

• Convenience: You can access your accounts anytime, anywhere through cloud software such as Xero or QuickBooks.

• Speed and automation: Many processes, such as invoice uploads and bank reconciliations, are automated for efficiency.

• Extended availability: Larger firms may have customer support available outside traditional office hours.

Online firms suit business owners who are comfortable with technology and prefer the flexibility of digital communication over in-person meetings.

Potential downsides:

• You may deal with different people over time, leading to less consistency.

• The advice can feel generic rather than tailored to your local market or business type.

• Without in-person meetings, communication may feel less personal, especially for complex matters.

Which Is Better for Different Types of Businesses

The right choice depends on your business stage, size, and personal preferences.

• Start-ups and freelancers: Online firms can be cost-effective for sole traders or freelancers who mainly need bookkeeping, Self Assessment, and simple advice.

• Growing limited companies: A local accountant may be better for businesses that want more strategic input, such as tax planning, management accounts, or funding advice.

• Businesses with employees or stock: Local accountants can visit your premises, help with payroll setup, and advise on stock control and VAT, which can be valuable in person.

• Digital or e-commerce businesses: Online firms often excel at integrating with e-commerce platforms and cloud-based apps, making them efficient for businesses that operate mainly online.

The Importance of Communication

The quality of communication matters more than the location of your accountant. A local accountant who is difficult to reach can be more frustrating than an online firm with responsive support. Likewise, an online firm that relies only on emails may not suit you if you prefer talking through figures in detail.

When choosing an accountant, ask how they communicate, how quickly they respond to queries, and whether you will have a dedicated contact. Reliable communication builds trust and prevents problems before they escalate.

Cost Comparison

Local accountants often charge slightly more, typically between £50 and £150 per month for small businesses, depending on the services included. Online firms can offer packages starting from £25 per month, but you may pay extra for add-ons like payroll, VAT, or year-end accounts.

While cost is an important factor, it should not be the only one. The cheapest option may not offer the level of support you need, especially if your business grows or faces complex tax issues. A good accountant should save you more in tax efficiency and time than their fee costs.

Compliance and Professional Standards

Both local and online accountants can be equally qualified and regulated. Always check that your accountant is a member of a recognised professional body such as ACCA, ICAEW, ICAS, or AAT. These qualifications ensure ethical standards, ongoing training, and professional indemnity insurance.

Whether they operate locally or nationally, a qualified accountant should be able to manage your bookkeeping, tax filings, and compliance with HMRC.

Example Scenario

Imagine Alex, who runs a small construction business. At first, he signs up with an online firm for its low fees. The service is fine for bookkeeping, but when he needs advice about CIS tax deductions and local business grants, the support feels too general.

He switches to a local accountant who specialises in trades and construction. They meet in person, review his accounts, and identify missed tax reliefs. The local accountant charges more, but the savings and peace of mind more than make up for it.

By contrast, Emma runs an online retail store and chooses a national cloud-based accountant. Her software syncs automatically with her sales platforms, and she can check reports in real time. The digital setup suits her perfectly, and she saves money through automation.

Both choices work well — it depends on the business model and priorities.

Questions to Ask Before Deciding

• Are you qualified and insured?

• How do you communicate with clients and how quickly do you respond?

• Do I get a dedicated contact?

• What software do you use and is it compatible with mine?

• What is included in your fees and what costs extra?

• Have you worked with businesses like mine before?

These questions help you compare options fairly and choose an accountant who fits your way of working.

Conclusion

Neither local nor national accountants are universally better — the best choice depends on your business needs, preferences, and budget.

A local accountant offers personal service, local insight, and the reassurance of face-to-face support. A national online firm provides convenience, lower costs, and advanced digital tools.

If you value close relationships and tailored advice, a local accountant may be ideal. If you prefer flexibility, automation, and lower fees, an online firm could suit you better. The key is to choose a qualified, responsive accountant who understands your business and supports your goals.