If you’re a professional or an entrepreneur doing business in Connecticut, you know that keeping your books in order is essential for your success. But you might be hesitant to look for bookkeeping services because you’re not sure if they are taxable in “The Constitution State.”
In this article, our financial experts at Ricker Duval LLC will share with you what bookkeeping is and why it is important, as well as the things you need to consider when looking for a professional bookkeeper. We will also answer the titular question: are bookkeeping services taxable in CT?
The Importance of Bookkeeping
Bookkeeping is the practice of maintaining full records of financial transactions and updating them on a regular basis. Bookkeeping keeps track of things like how much money your company owes and will receive, how much money was invested, how much profit was made, and other similar things.
Proper bookkeeping serves as a tool that helps in general strategic decision-making as well as a benchmark for businesses’ revenue and income targets. With proper bookkeeping, businesses can also accurately evaluate their performance. That is why once your business is up and running, you should invest additional time and resources to keeping accurate records.
How to Choose the Right Bookkeeper
When looking for a bookkeeping service provider for your business, make sure to ask the right questions so you can narrow your choices and find the best one possible.
The first thing you should consider is the bookkeeping firm’s experience and tenure. How long have they been in business? Do they have previous experience with companies and businesses like yours? Make sure to ask for references from past clients to get a sense of the quality of their work.
Another important factor to consider is their service fees. How much do they charge per month or per project? What services are covered in their pricing? Make sure to clearly understand the bookkeeper’s pricing before you commit to hiring their services.
Finally, you will want to look at the provider’s customer service. How soon do they respond to their clients’ questions or concerns? Do they offer 24-hour support? Make sure to find out what kind of support they offer before you make a decision.
Bookkeeping Services in CT: Are They Taxable?
Sales tax is legally required to be collected from all tangible, physical things sold to a consumer in the state of Connecticut. However, certain forms of safety equipment, some groceries, certain types of apparel, children’s car seats, children’s bicycle helmets, college textbooks, compact fluorescent light bulbs, most types of medical equipment, and certain motor vehicles are all exempt from this tax.
Now, to answer the question: are bookkeeping services taxable in CT?
According to a research report on the Connecticut General Assembly website, business and professional services in Connecticut and New York are generally exempt from sales tax unless specifically identified as taxable by statute. Such exemptions include bookkeeping and accounting services.
It’s important to note that these rules and exemptions may change in the future, so it’s always best to consult with a tax expert before making any decisions.
Ricker Duval LLC is here to help you with our bookkeeping and financial management services. Let us assist you in growing your business with the solutions we offer. Schedule a free consultation with us, and we’ll get back to you as soon as possible with answers to your questions and concerns.