Introduction: The Big Question for Modern Business Owners
If you’re a small business owner, you know that keeping your books organized is critical for staying compliant, managing cash flow, and making smart decisions. But with so many bookkeeping options today, you might be wondering: Should I hire a local bookkeeper or use a virtual bookkeeping service?
In this guide, we’ll explore the key differences between virtual and local bookkeeping, their pros and cons, and how to choose the right option for your business.
What Are Virtual Bookkeeping Services?
Virtual bookkeeping services are provided remotely by professionals using cloud-based software like QuickBooks Online, Xero, or Wave. Communication is handled through email, video calls, and file sharing.
How Virtual Bookkeeping Works:
- Your bookkeeper accesses your financial accounts securely online.
- Transactions are recorded and categorized.
- Reports are delivered monthly or as needed.
- Communication is handled digitally, with options for regular meetings.
Example: An e-commerce store selling products across Canada works with a virtual bookkeeper who manages sales data and taxes without ever needing to meet in person.
What Are Local Bookkeeping Services?
Local bookkeepers are professionals located in your city or region. They may work from their own office or visit your business for meetings and paperwork. Some local bookkeepers now work partially or fully virtually, but proximity allows for in-person interaction if needed.
How Local Bookkeeping Works:
- Bookkeeper may collect physical receipts and invoices.
- Can visit your business for reviews or meetings.
- Provides financial reports and consultations in person or by phone/email.
Example: A restaurant owner in a small town prefers working with a local bookkeeper who visits weekly to review cash flow and handle payroll.
Pros and Cons of Virtual Bookkeeping Services
Pros:
- Cost-effective: Lower rates without office overhead.
- Access to specialists: Nationwide pool of experts.
- Cloud-based tools: Real-time updates and access to reports.
- Flexible and scalable: Adjust services as you grow.
- Faster communication: Quick responses through email or chat.
Cons:
- No in-person interaction.
- Requires tech-savviness.
- Dependent on reliable internet and software.
Pro Tip: Virtual bookkeepers are a great option for online businesses, startups, and companies comfortable with remote work.
Pros and Cons of Local Bookkeeping Services
Pros:
- Personal relationships: Face-to-face meetings build trust.
- Familiar with local tax rules.
- On-site support: Can physically review documents if needed.
Cons:
- More expensive due to office and travel costs.
- Limited availability depending on your location.
- Less flexible: Fixed office hours may slow communication.
- Note: Many local bookkeepers now offer virtual-only services for efficiency.
Tip: If you need face-to-face interaction and someone local who understands your community, local bookkeepers may be ideal.
Comparing Virtual vs. Local Bookkeeping
| Feature | Virtual Bookkeeping | Local Bookkeeping |
| Cost | Lower, flexible rates | Higher due to overhead |
| Access to Experts | Nationwide specialists | Limited to local talent |
| Interaction | Remote, via video or email | In-person, phone, or email |
| Flexibility | Highly scalable as you grow | Less scalable, fixed availability |
| Technology | Cloud-based, real-time updates | May use paper-based or hybrid systems |
| Tax Compliance | Handles national and provincial tax filings | Local expertise in provincial taxes |
| Availability | Easy to find nationwide | Limited depending on location |
How to Choose Between Virtual and Local Bookkeeping
1. Evaluate Your Business Needs
- Do you prefer in-person meetings?
- Do you need specialized industry support?
2. Consider Budget and Growth Plans
- Virtual bookkeepers may offer more affordable rates for startups.
- Local bookkeepers may be worth the cost if you need frequent, in-person guidance.
3. Think About Your Comfort with Technology
- Comfortable with cloud-based tools? Virtual is a natural fit.
- Prefer handing over paperwork physically? Local may suit you.
4. Check for Industry Experience
- Whether Virtual or Local just check for specific industry experience.
Common Misconceptions About Virtual and Local Bookkeeping
Myth 1: Virtual Bookkeeping Isn’t Secure
Reality: Top virtual bookkeepers use encrypted, bank-level security.
Myth 2: You Can’t Build Relationships with Virtual Bookkeepers
Reality: Many virtual bookkeepers offer regular video calls and personalized support.
Myth 3: Local Bookkeeping Is Always Better
Reality: Many local bookkeepers now work virtually for efficiency and cost savings.
Example: A construction company in Toronto found a virtual bookkeeper with industry expertise who provided better service than local options.
Why Choosing the Right Bookkeeping Matters
- Avoid tax issues: Accurate books help with GST/HST, payroll, and income tax.
- Make informed decisions: Know your profits and cash flow.
- Save time and money: Focus on growth while pros handle the numbers.
Analogy: Bookkeeping is like your business’s GPS—without it, you don’t know where you’re headed.
Final Thoughts: Which Bookkeeping Service Is Right for You?
Both virtual and local bookkeeping services have their strengths. The right choice depends on how you like to work, your business needs, and your budget.
Ready to Find the Perfect Bookkeeping Solution?
👉 Book a free consultation with Apex Bookkeeping today to explore which option—virtual or local—is best for your business!
FAQs
Q: Is virtual bookkeeping safe?
A: Yes! Professional virtual bookkeepers use encrypted, secure cloud software.
Q: Can I switch from a local bookkeeper to a virtual one?
A: Absolutely. Many businesses are moving to virtual bookkeeping for efficiency and cost savings.
Q: Which is cheaper—virtual or local bookkeeping?
A: Virtual bookkeeping is often more affordable due to lower overhead costs.
Q: Will a virtual bookkeeper understand Canadian tax rules?
A: Yes. Many virtual bookkeepers specialize in Canadian small businesses and comply with CRA regulations.