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Accounting and Bookkeeping Services in Rochester, Minnesota
Rochester business owners trust 1-800Accountant's expert CPAs to manage their bookkeeping and tax preparation, giving them more time to focus on what matters most—growing their companies.
Our Accounting Services for Rochester Small Businesses
Business Tax Preparation: Have your taxes prepared and filed by a CPA with expertise in your industry so you're always confident in your business tax situation. Our CPAs, with more than 17 years of experience on average, can save you thousands annually when you delegate complex Rochester tax preparation to them!
Bookkeeping: Solidify your financial base and manage cash flow with precise, error-free bookkeeping done for you that saves time and provides crucial insights that empower you to make important data-backed business decisions. This meticulous process delivers essential tools for interpreting data with easy-to-understand reporting, enabling your accountant to develop vital financial modeling.
Tax Advisory: Business tax considerations don't end in April. Through our affordable tax advisory service, you can receive the guidance you need when you need it year-round from a dedicated small business tax advisor. Strategic planning helps minimize your business tax liability in Minnesota throughout the year while ensuring compliance.
Payroll: Save hours each pay period with comprehensive payroll services handled for you, with regular tax submissions to the city of Rochester, ensuring accuracy and freeing you to focus on other vital aspects of your business.
Business Formation: Enjoy the advantages of officially establishing your business in Minnesota with our complimentary incorporation services. Simply cover any Rochester fees, and we will manage the rest. This puts you on a path to hiring employees and creating a business bank account as you experience the benefits of an optimized business structure and maximum tax savings.
Discussing your business taxes with 1-800Accountant is quick and easy:
- Set up a time for us to give you a call.
- Tell us what’s going on with your business.
- Get matched with an accountant who knows your industry & local regulations.
| Level | Rate |
|---|---|
| State Tax Rate | 6.88% |
| County Tax Rate | 0.50% |
| Municipal Tax Rate | 0.75% |
| Combined Sales Tax Rate | 8.13% |
| City-Specific Taxes |
|---|
| A 0.25% county transit sales and use tax applies to most goods and services in Olmsted County. You need to calculate and pay this tax when sales tax wasn’t collected at the time of purchase. You file it with your regular Minnesota use tax return, which is due every month, quarter, or year based on your filing schedule. For details, see Olmsted County’s guidance on use tax. |
| Licenses and Permits |
|---|
| While Rochester doesn't require a general business license, certain businesses need specific licenses from the city: food establishments (restaurants, cafes, food trucks), contractors and trades, massage businesses, taxi and transportation services, rental properties. |
| Applications can be submitted through the online Citizen Access portal, with the City Clerk's Office offering in-person assistance by appointment. |
| Grants and Funding in Rochester | Grants and Funding Information |
|---|---|
| Rochester Community Building Fund | The City of Rochester is offering 2025 Small Grants through the Community Building Fund to support local initiatives and businesses fostering diversity, equity, and inclusion. Small grant applications remain open for 2025. |
| Launch Minnesota Grants | This initiative provides grants for qualifying businesses, with awards up to $35,000. The grants operate on a 2:1 reimbursement basis (business spends $2 and gets $1 reimbursed). Available for innovative startups and early-stage businesses across Minnesota, including Rochester. |
| Minnesota Main Street Economic Revitalization Grants | Rochester is benefiting from a share of $2.28 million in Main Street Grants from the Minnesota Department of Employment and Economic Development (DEED). These grants help businesses fund property repairs, renovations, construction, landscaping, and streetscaping, specifically aimed at businesses located on main streets and business corridors. |
| Olmsted County Small Business Relief Grant Program | Olmsted County has previously offered grants up to $25,000 for small businesses affected by executive orders. Check the Olmsted County website for any current or upcoming funding rounds. |
What to Look for in Rochester, Minnesota Accounting and Bookkeeping Services
When choosing an accountant or bookkeeper for your Rochester small business, you should consider the following factors:
Certifications and State Compliance: Look for professionals with proper credentials such as CPA designation or QuickBooks certification. Your accountant should demonstrate thorough knowledge of Minnesota's tax regulations, particularly the state's unique corporate franchise tax system and sales tax requirements that affect Rochester businesses.
Healthcare Industry Experience: Given Rochester's economy centers around the Mayo Clinic and healthcare sector, prioritize accountants with specific experience serving medical practices, healthcare startups, or biotech companies. These specialists understand complex healthcare billing, reimbursement cycles, and the financial implications of Minnesota's healthcare regulations.
Understanding of Local Economic Conditions: Select a financial professional familiar with Rochester's unique economic landscape. They should comprehend how the Mayo Clinic's expansion projects, the Destination Medical Center initiative, and seasonal tourism patterns affect local businesses' cash flow and financial planning needs.
Knowledge of State Tax Incentives: Minnesota offers specific tax advantages for businesses, including R&D credits valuable to Rochester's growing biotech sector and angel investment tax credits for startups. A knowledgeable accountant can help you navigate these opportunities while ensuring compliance with Minnesota's specific filing requirements and deadlines.
Talk to a business tax expert today for all your tax needs in Rochester.
Additional Minnesota Accounting Resources:
Virtual Bookkeeping: How To Find the Best Online Bookkeeper
CPA vs. Tax Preparer: Which Is Best for Your Business?
10 Common Small Business Tax Questions Owners Are Asking
*Based on a $12.2k average 2022 tax refund per client, which is 4x the cost of a full-service package. Source: first-party data.
*Includes average business tax preparation, form completion and submission, record keeping, and other misc admin time. Source.
*Historical first-party data.