Online Accountant vs Local Accountant | Which Is Better for Your Business?

These days, you don't necessarily need to live near your accountant to work with them. Cloud accounting, email and video meetings have made it possible for a business owners to work with an accountant anywhere else in Australia.

But that doesn't mean location no longer matters.

Many business owners still prefer having someone they can meet face-to-face, particularly when they need to discuss an important business decision or work through a complicated tax issue. Others are perfectly comfortable doing everything online and value the convenience that comes with it.

So, which is better: an online accountant or a local accountant?

In reality, the more important question is not where your accountant's office is. It's whether they are qualified, responsive, accessible and willing to understand your business.

What is an online accountant?

An online accountant generally works with clients without regular face-to-face meetings. Documents are shared electronically, meetings are held by video or phone, and accounting records are usually managed through cloud-based software.

This can work very well for business owners who are very busy and comfortable managing their affairs digitally. It also means you aren't limited to accountants in your local area.

Some online accounting firms operate large and highly automated practices. This can keep their fees competitive, but the experience can vary. In some cases, you may also deal with different people for different questions, or communicate mainly through emails, portals and support tickets.

What is a local accountant?

A local accountant is someone you can meet in person when you need to. For many business owners, that personal relationship is very important.

Being local can also make it easier to have an informal conversation about your business. Sometimes you don't have a specific accounting question at all—you just want to sit down with someone who understands your business and talk through an idea.

That said, being local doesn't necessarily mean an accountant is old-fashioned. Most modern accounting practices now use cloud software, electronic document management and online communication alongside face-to-face meetings.

Why an online accountant can be a good choice.

There are some genuine advantages to working with an accountant who operates primarily online.

• More choice: You can look for an accountant based on their experience and expertise rather than their location.
• Convenience: Meetings can be held by video or phone without travelling to an office.
• Cloud access: Your accounting records and reports can be available online, making it easier to keep track of your business.
• Potentially lower fees: Some online firms have lower overheads and may pass some of those savings on to clients.
• Good fit for digital businesses: If you already do most of your business online, working with an online accountant can feel like a natural extension of the way you operate..

For some businesses, there is absolutely nothing wrong with an online-only relationship.

Where an online-only approach can be difficult.

The downside is that not every accounting question can be handled efficiently through a portal or a string of emails.

There are times when it helps to speak directly with the person handling your affairs. You may want to discuss buying a property, restructuring your business, bringing in a new business partner, dealing with an ATO issue or simply understanding why your tax bill has changed.

If you are dealing with a large firm where every query goes through a standard process, getting that personal conversation may not always be easy.

Why a local accountant can be a good choice.

The biggest advantage of a local accountant is often the relationship.

Being able to meet your accountant in person can make a real difference, particularly when you're making an important decision. A face-to-face conversation can sometimes achieve more in 30 minutes than several emails going backwards and forwards.

A local accountant may also have a good understanding of the businesses and industries operating in the area. However, it is important not to assume that being local automatically means better advice. A nearby accountant still needs the right qualifications, experience and systems.

And just because your accountant is local doesn't mean you have to give up the convenience of cloud accounting.

Where a local accountant can fall short

There are disadvantages to a traditional local model as well.

You may have fewer firms to choose from, particularly if you are looking for a specialist in a particular area. Some smaller practices may also rely more heavily on traditional processes and offer less access to real-time financial information.

And while meeting in person can be valuable, not every matter requires a meeting. For simple questions or document requests, email, phone and online systems can often be much quicker.

The best arrangement is often one that gives you both options.

What should you actually look for in an accountant?

Rather than deciding based purely on whether an accountant is local or online, there are a few things that are much more important.

Is the accountant properly qualified and registered?

If you are engaging someone to provide tax agent services, check that they are registered with the Tax Practitioners Board. You can search the public register yourself.

Qualifications and professional memberships can also tell you something about an accountant's professional background. Depending on the type of advice you need, you may want to look for qualifications such as Chartered Accountant (CA) or Chartered Tax Adviser (CTA).

Will you deal with the same person?

This is worth asking before you sign an engagement letter.

You want to know who will actually be responsible for your accounting and tax affairs and whether you can speak directly with them when something important comes up.

Do they understand your business?

A good accountant should do more than process transactions and lodge tax returns.

They should understand what your business does, how it makes money, what challenges you are facing and where you want the business to go. That understanding can make a significant difference when providing tax and business advice.

Are the fees clear?

Ask what is included in the fee and what will cost extra. Fixed fees can make budgeting easier, but make sure you understand exactly what services are included.

What happens when something goes wrong?

This is one of the questions business owners often overlook.

Anyone can look good when everything is straightforward. What matters is how your accountant responds when there is an ATO review, a tax problem, an unexpected liability or another issue that needs attention.

Taxcor: Local Accountant with the Convenience of Cloud Accounting

At Taxcor Business Accountants, we don't believe business owners should have to choose between a personal relationship and modern accounting technology.

Our office is in Wyong on the Central Coast of NSW, where our clients can meet with us in person when required. At the same time, we use cloud accounting platforms including Xero, MYOB and QuickBooks, allowing us to work with clients anywhere in Australia.

Founder Arif Abdullah has worked in public practice since 2011. He holds a Bachelor of Commerce from the University of Ballarat and is a Chartered Accountant and Chartered Tax Adviser. Arif is also a registered tax agent and registered ASIC agent.

Taxcor provides a range of accounting, tax and business services. Our services are provided on a fixed-fee basis, so clients know what they are paying for and what is included.

So, should you choose an online or local accountant?

There isn't one right answer.

If you prefer doing everything online and don't need face-to-face meetings, an online accountant may be a perfectly good choice. If you value being able to sit down with your accountant and discuss your business in person, a local accountant may be a better fit.

But you don't necessarily have to choose one or the other.

A modern local accounting firm can give you the convenience of cloud accounting and online meetings while still being available for a face-to-face conversation when you need one.

For us, that's the approach that makes the most sense.

Whether we are sitting across the table from a client in our office or speaking with them over a video call from another part of Australia, the goal is the same: to understand the business, provide practical advice and be available when our clients need us.