Do I need a local accountant?
For most people, no. A good accountant can do everything online: you share records through cloud software like Xero, sign documents electronically, authorise them with HMRC digitally and talk by video or phone. How they work matters far more than where they are. Meeting in person can still help for complex situations or if you prefer it, and many online firms are happy to arrange that.
How working with an online accountant works
- Video or phone call to understand what you need, then a fixed quote.
- Digital sign-up: engagement letter signed online and ID checks done electronically, as accountants must do under anti money laundering rules.
- HMRC authorisation online, so they can talk to HMRC for you.
- Cloud software such as Xero, with bank feeds and receipt capture, so they see your numbers without you posting paperwork.
- Regular check-ins by video, plus email, phone or messaging in between.
Local vs online: an honest comparison
| Local accountant | Online accountant | |
|---|---|---|
| Choice | Limited to firms nearby | Pick the best fit from anywhere in the UK |
| Meetings | Easy to meet face to face | Video calls, with in-person sometimes available |
| Your records | Often paper or emailed spreadsheets | Shared live in cloud software |
| Speed | Depends on the firm | Usually quicker, because nothing is posted |
| Specialism | Generalist is common | Easier to find someone who knows your type of business |
When a local accountant can still make sense
- You really prefer sitting down with someone in person
- You keep mostly paper records and don't want to change
- Your business is very local and you value a local network
Even then, it's worth asking an online firm whether they'd meet you. Many will for the first meeting or an annual review.
Things to check before choosing any accountant
- They're a member of a professional body such as AAT, ICAEW, ACCA or ATT, and supervised for anti money laundering.
- They hold professional indemnity insurance.
- The fee is fixed and you know what's included.
- You know who you'll deal with and how quickly they reply.
- Reviews from real clients, on Google or similar.
More detail in how to choose an accountant.
Switching to an online accountant
It's simpler than most people think: your new firm contacts your old one and handles the handover. See how to switch accountants.
Frequently asked questions
Do I need a local accountant?
Usually not. Accountants can do everything online through cloud software, e-signatures, digital ID checks and video calls. How they work matters more than where they are.
Is an online accountant as good as a local one?
It can be better, because you can choose the best fit from anywhere in the UK rather than whoever is nearby. Check they're professionally qualified, insured and offer a fixed fee.
Can an online accountant deal with HMRC for me?
Yes. You authorise them online and they can then deal with HMRC for you in the same way a local firm would.
Will an online accountant ever meet me?
Many will, for a first meeting or annual review, but most clients find video calls easier.
This guide is general information for UK taxpayers and was correct when last reviewed. Tax rules change, so check your own position with a qualified adviser.
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- How to switch accountants
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- How much does an accountant cost in the UK?
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