Taxes have always been among the hardest things to do regardless of whether you’re running your own business or not. More so if you don’t have a background in accounting or finance. Tax-related work aren’t easy, particularly when you’re full of things to be done. If you don’t have the budget to hire an accountant, doing it on your own can be risky. If you make a mistake it could mean you have to do it all over again!
Nearly everyone would prefer to skip this step. However, since it’s mandatory, we have no choice.
What can we do about it?
We can make our lives easier with tools such as TaxJar.
Here we’ll take a look at this life-saving tool and explain how it can benefit you. Although this is quite a long read but you’ll be able to gauge whether TaxJar is what you need today.
Do you prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
For those who like to read, let’s get right into it.
What is TaxJar 4 Tax Brackets
Founded in 2013, TaxJar is an application that automatizes your reporting, filings and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it across all of your channels of sales to ensure that you are in compliance with sales tax requirements. It simplifies the processes that require days to complete and finish within only a few minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to make their business more organized and straightforward. Let’s look into the benefits and features of TaxJar.
Services and features
One of the most important things you’ll need to make sure you have a tax accounting platform perfectly integrates along with sales funnels. If you’re selling through multiple channels, you need to keep everything in place. The last thing you want is to be penalized for overlooking just one minor detail.
TaxJar allows you to display your critical data in one location. That way, there’s no need to collect data from different channels and sort it into a single platform. All you need to do is integrate TaxJar, it will handle the rest.
Other than that, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms that they can connect with:
TaxJar lets customers make sales tax filings by hand or using their AutoFile feature. In this review, we’ll look into both.
If you opt to do it manually, TaxJar will allow you to connect all of your sales platforms. When the time is right for the filing of income tax returns, the team will instruct you on how to manage these. However, it will be up to you and your team to finish the tax returns within the timeframe. TaxJar is only there to provide guidance on what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out any forms manually. With this feature, everything will be automated from calculating sales tax in order to record and process them. There could be additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to ease your accounting issues. Your orders from your e-commerce channels can be compiled into one dashboard using this platform. Once you’re on the platform, you and your team can access everything you need, such as an inventory of your transactions, reports, as well as data.
The best part about this option is the fact that it lets you to update your account automatically each day. They not only let to know the amount you’ve accumulated and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard also allows users to view in detail the total sales tax in your business. Additionally, you can export the data as the form of a CSV file in case you require it for your accounting and financial planning processes or if your team requires it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of your sales channels. It means you don’t need to hunt for your paperwork when you need them in the event of a need. Even if you already have your accountant, this function will help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will help you plan your funds more effectively. You’ll be aware of the budget you have to cover other operating costs.
What’s more is that TaxJar offers training and tutorials and tutorials, not just for their platform , but also for anything connected to sales tax. You can check out their webinars, guides, as well as their blog to find more details. Additionally their sales tax calculator is useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing capabilities, but they’re often too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and what each of those plans can offer. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They claim that it’s the most suitable plan for you to help you with filing requirements and reporting. It also includes sales tax reporting, 4 free yearly AutoFiles, and a CSV import. With the starter plan, you will be able to access their AI tax advice.
If you’re a small company proprietor, then this program will be perfect for you. It might not include all the features of TaxJar but it comes with the essentials that you need.
Additionally, you can contact their support team with their support chart for email. You’ll also have access to their integration tools.
If you’re looking to get a bit more than just the basic features, then the Professional plan might be the right one for you. The price starts at $99 but it can go higher if you add custom features.
How different is it from the original plan?
In addition to accessing every one of Starter plan’s features, you also get access to the support of their customer service via phone, API access, and sophisticated CSV import. They also allow you to have 12 free AutoFiles each year.
If you run a large company, you may need to choose premium plans instead. It includes all of the features needed to help with your taxes. Additionally, they permit unlimited data import integrations, Integrations with APIs, teams of users and AutoFiles.
They also have a team who are devoted to managing your account. They don’t reveal the amount that the Premium plan is going to cost. 4 Tax Brackets
But they did state that this plan is customized to each user. So the costs will vary depending on what you need for your business.
Fortunately, you don’t need to bet your life on it to determine if this service is the right one for you. If you’re still considering various options, they provide 30 days of free trial. It should give you enough time to determine whether the service is a good fit for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar let’s take a break. In order to sum up the whole thing, here are the pros and cons of making use of TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Has support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms.
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers.
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid down, TaxJar is an excellent platform for businesses with many sales channels and utilizes numerous platforms. If this sounds like the way you’re doing, then you should try this.
Not only will it assist you in keeping track of the sales and profits of your business however, it will also help you meet your deadlines. It’s also an excellent platform for an accountant since they have a Tax Advisor program. You can find tips and learn from their sessions about taxes through it.
Utilizing TaxJar will help you reduce time and keep track of every deadline or requirement you need to meet. If you’re in a region with a lot of tax laws, this can definitely help you get your head around the subject. 4 Tax Brackets
If handling your taxes is simple, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track all of it. Moreover, if you find the whole process easy to do and you’re comfortable with it, you may be better to do it by yourself.
FAQ 4 Tax Brackets
Which areas does TaxJar offer API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together with TaxJar?
Yes. You can sync your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currencies. The transactions’ amounts are in US$. If you’re using a different currency, you’ll have to convert it to USUSD prior to when TaxJar can calculate your tax.