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Using Local Service Account for SQL 2008 R2

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Hi

I am a bit confused with setting up service accounts for SQL 2008 R2.

All the books and articles/blogs suggest using domain accounts but don't talk much about using local service account.

Even though SQL server is a part of domain, it is not a option for me to use domain accounts because it is rarely used in my company (There are all sorts of reasons for that).

so I like to use local service accounts.

I am just a bit confused using the local accounts. Is there anything I need to do about them? can I just use them?

Initially I used the administrator account for the all the services then I read it is a good practice to use accounts with minimum rights. so I just created local user accounts (default users group) and used them as a service account. 

If I just use the local service accounts, will there be enough rights to do all the necessary things without me doing anything about them? (I had an issue with SQL agent so I created a proxy account(admin) to resolve the issue).

Should I create users (like I did) and assign to the right local service group account?

What would be the best way?

Thanks


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