Google's local algorithm weighs three categories: relevance, distance, and prominence. Relevance means your business category and service descriptions match what users search for. If someone searches "tax accountant near Boston," Google checks whether your profile is tagged as tax preparation and whether your service area includes Boston.
Distance is straightforward — the closer your address to the search location, the higher you rank, all else equal. But many firms try to cheat this by listing fake addresses or adding service areas they don't serve. Google penalizes this aggressively.
Prominence is the hardest to game. Google looks at review count, recency, and rating; citation consistency across the web (your business name, address, phone number appearing identically on directories); and your website's topical authority on services you claim. In our experience working with professional service firms, prominence accounts for roughly 40 – 50% of local ranking strength, especially in competitive markets.
The mistake most firms make is over-optimizing for keywords inside their Google Places description while ignoring review velocity and citation accuracy. Google doesn't care if your business description says "tax accountant" five times — it cares whether you actually look like a tax accountant to the broader web.