Figure Eight Financial

Cedar Rapids

Bookkeeping for cleaning businesses in Cedar Rapids

Cedar Rapids has a 1% local option sales tax that runs from April 1, 2009 to June 30, 2034, on top of Iowa's 6% state sales tax. Added together, taxable cleaning in the city comes to 7%, but that total is my inference: the Iowa Department of Revenue's rate service doesn't publish a combined figure. Commercial cleaning is taxable in Iowa, and residential janitorial work is exempt only in a private residence when the occupant pays.

The state's rate data gives the Cedar Rapids local option tax an end date, June 30, 2034, and doesn't give a combined rate at all. This page covers that tax and how the 7% is put together, which Cedar Rapids cleaning jobs Iowa taxes, the state wage, and what it all means for your books. Payroll registration and the employee test are on my Iowa page.

How the 7% is put together

The Iowa Department of Revenue's sales tax rate map service lists a 1% Cedar Rapids local option sales tax starting April 1, 2009 and ending June 30, 2034. Its state layer lists Linn County at the 6% state sales tax from July 1, 2008. The same service also lists a 1% Linn County local option tax from April 1, 2009, with no end date. The 7% figure assumes the city and county local option taxes don't stack on the same sale, and the service doesn't say whether they do. It also shows no update date, so this page relies on a query run October 21, 2026. The rate for a specific job address can be checked on the tax mapper at tax-mapper.iowa.gov.

Source: Iowa Department of Revenue, SalesTaxRates map service, local option layer, Cedar Rapids and Linn County query (no currency date stated; queried October 21, 2026)

Windows, carpets, and who pays

Commercial cleaning is taxable in Iowa. Residential is conditional: the exemption covers janitorial services in a private residence, apartments and multiple housing units included, paid for by the occupant, and the rule doesn't address landlord-paid cleaning. Interior window washing is listed as a janitorial service, while exterior window cleaning falls under building maintenance or cleaning. Exterior work on an occupant-paid private residence is excluded from building maintenance or cleaning but may be taxable as a construction-related service. Furniture, rug, carpet, and upholstery cleaning is its own taxable service under Iowa Code 423.2(6)(t), and the residential exemption is written for janitorial services without mentioning carpet cleaning. Janitorial and building cleaning connected with new construction, reconstruction, alteration, expansion, or remodeling is exempt. The full list is on my Iowa sales tax page.

Source: Iowa Legislature, Iowa Code 2026, Section 423.2

Source: Iowa Administrative Code 701-211.23(423), Janitorial and building maintenance or cleaning (IAC 2/5/25)

Wages in Cedar Rapids

Iowa doesn't have local minimum wages, per Iowa Code 364.3, so the state rate applies in Cedar Rapids: $7.25 an hour, in effect since January 1, 2008, with no change announced as of October 20, 2026.

Source: Iowa Legislature, Iowa Code 2026, Section 91D.1

Source: Iowa Legislature, Iowa Code 2026, Section 364.3

What this means for your books

Collected sales tax goes to a liability account, and janitorial work, occupant-paid house cleaning, and carpet or upholstery jobs each get their own income line. Trying to break a number before a customer ever sees it is the habit I lean on most, and a 7% the state never printed is exactly the number to try it on. If a taxable Cedar Rapids invoice shows anything other than the 6% and the 1% added together, I want to know why, and the rate set in the invoicing software gets checked against the state's rate data instead of assumed. Labor goes into payroll at the wage actually paid.

I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep taxable and exempt work recorded apart; whether a job is taxable, and whether the county's local option tax applies alongside the city's, are questions for your CPA.

Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.

Dave Gordon with his family
Dave Gordon with his family

About Figure Eight Financial

A bookkeeper who works only with cleaning businesses

Figure Eight Financial is Dave Gordon’s bookkeeping practice for residential and commercial cleaning companies. I work with owners in Cedar Rapids and across the country, and I’m a Certified QuickBooks Online ProAdvisor.

Before bookkeeping I studied computer science at Penn State and spent a career at IBM as an engineer, so I build the books as a system: data comes in once, lands in the right place, and ties back to a statement. I’m a bookkeeper, not a CPA or Enrolled Agent. I keep the books your CPA works from, and the tax decisions stay with your CPA.

  • Raleigh area since 2002
  • Computer Science, Penn State
  • A career at IBM
  • MBA, Duke
Cary Chamber of Commerce member badgeIntuit Certified QuickBooks Online ProAdvisor badgeAssociate Digital Bookkeeper badgeIntuit Certified QuickBooks Payroll ProAdvisor badge

Credentials and memberships reported by Figure Eight Financial.

More about Dave

How I Help

How I help cleaning businesses in Cedar Rapids

Cedar Rapids work gets sorted by type in the books, with janitorial, occupant-paid house cleaning, and carpet or upholstery jobs each on their own line. Collected tax stays in a liability account, checked against the state's 6% and the city's 1%. Book a short call below and tell me what kinds of jobs you run in Cedar Rapids.

Monthly bookkeeping

The core service. Transactions recorded and categorized, every account reconciled so the books and the bank agree, and monthly reports that arrive explained, split by residential and commercial and sliceable per contract.

The full picture of how this works for a cleaning company

Catch-up bookkeeping

For the months where nothing got entered at all. I fill in the missing periods from the ground up, pulling bank feeds, statements, and receipts until every month has a complete set of records.

How catch-up bookkeeping works

Cleanup bookkeeping

For books that exist but can’t be trusted. I audit what’s there, fix the unreconciled accounts, duplicate transactions, and wrong categories, and tie every balance back to a statement.

How cleanup bookkeeping works

Payroll

Your crews paid on time, every pay period, with each payroll run recorded in the books so labor shows up against the jobs it belongs to.

How payroll works

Invoicing and accounts receivable

Recurring invoices that match your contracts, an aging report you can trust, and follow-up on slow payers handled by a process instead of your evenings. Built for net-60 commercial accounts.

How invoicing and receivables work

QuickBooks Online setup and training

A file built right for a cleaning company from day one, or rebuilt after the DIY version drifts, and then I teach you to run it. I’m a Certified QuickBooks Online ProAdvisor, and this is honestly my favorite part of the job.

How a proper setup works

How it starts

  1. A short call

    We start with a short call about your business and where the books stand. The first conversation doesn’t cost anything.

  2. I take a look

    I take a look at what you’ve got, your QuickBooks file, your spreadsheet, whatever exists.

  3. A written proposal

    You get a written proposal with the price, so the decision is yours with the number in hand.

Let's Connect

Ready when you are

Cleaning windows and carpets in Cedar Rapids along with regular janitorial work? Tell me how those jobs are invoiced today. The first conversation doesn't cost anything.