Ten years ago this wasn't really a question. You hired a local accountant, you went to their office with a folder of documents, and that was the process.
Today you have options. Online accounting services, virtual tax firms, software platforms with professional add-ons — the market has expanded significantly and the choice isn't always obvious.
Here's how to think through it honestly.
What Online Services Actually Offer
Online accounting services range from software with professional review bolted on to fully staffed virtual firms where you work with a dedicated accountant remotely.
The software-plus-review model is typically lower cost and works well for straightforward situations. You upload your documents, answer questions, and get a completed return. The interaction is limited but efficient for simple returns.
Fully virtual accounting firms are closer to a traditional accounting relationship conducted remotely. You have a dedicated professional, you communicate by video, email, and phone, and the service scope is similar to what you'd get locally. The difference is geography — they may be in a different state and you never meet in person.
What a Local Accountant Offers
A local accountant brings things that are harder to replicate remotely.
In-person relationship. For some people and some situations this matters. Sitting across from someone and walking through a complicated situation — a business sale, a divorce, an IRS audit — is different from doing it over video. The communication is richer and the relationship feels more substantive.
Local market knowledge. A local accountant who has worked in your area for years knows the state and local tax environment in a way that someone based elsewhere may not. Washington's B&O tax, city-level B&O requirements, local business licensing — these are details that matter and that a local professional navigates daily.
Community accountability. A local professional has a reputation to maintain in a specific community. Their business depends on referrals from local clients. That accountability shapes how they operate in ways that a large national platform doesn't have.
Proximity for complex situations. If you're facing an audit, dealing with back taxes, or navigating a complicated business transaction — having someone who can be physically present if needed has value.
Local, virtual, or a mix of both — see which way of working suits you.
Where Online Services Win
Cost. Online services are almost always cheaper than local accountants for comparable work. Lower overhead means lower fees. For a straightforward return this is a meaningful consideration.
Convenience. No scheduling around office hours, no driving across town, no waiting rooms. You upload documents when it's convenient for you and communicate asynchronously.
Availability of specialists. A large online firm may have specialists in specific niches — trucking, real estate, S-Corps — that a small local practice doesn't. If your situation is highly specific, the right specialist may not be local.
Where Local Accountants Win
Complex situations. The more complex your tax situation — multiple entities, significant assets, IRS issues, multi-state filing, business transitions — the more the relationship and deep familiarity with your specific situation matters.
State and local specifics. Federal tax law is the same everywhere. State tax law is not. A local professional who works in your state and city every day has a depth of knowledge about local requirements that an out-of-state virtual firm may lack.
Year-round relationship. When you can walk into someone's office or pick up the phone and get a real person who knows your situation — the accessibility of that relationship is genuinely valuable for ongoing tax planning.
The Honest Answer for Most Small Business Owners
For a simple individual return with W-2 income and no complexity — online is probably fine. The cost savings are real and the service is adequate.
For a small business owner with an S-Corp, employees, rental income, or any meaningful complexity — the calculus shifts. The relationship matters more, the local knowledge matters more, and the complexity justifies the additional cost of a professional who knows your situation in depth.
The question to ask yourself is not which option is cheaper but which option is right for what you actually need. Saving money on tax preparation while leaving deductions unclaimed is not a good trade.
Whatever you choose — local or virtual — the quality of the individual professional matters more than the delivery model. A mediocre local accountant is worse than an excellent virtual firm. An excellent local accountant who knows your situation deeply is better than a good virtual service that treats you like a transaction.
In person or virtual, the quality of the work doesn't change. We work with clients both ways.