Taxes have always been one of the most difficult tasks to complete, whether you’re running an enterprise or not. More so if you don’t have any experience in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is filled with tasks to complete. In the event that you do not have enough money to engage an accountant performing the task on yourself can be risky. If you make a mistake and you don’t know it, you may need to repeat the process!
Most people want to avoid this step. But , as it’s a requirement, we have no choice.
So , what can we do about it?
We can always simplify our lives by using tools like TaxJar.
We’ll look at this popular life-saving device and how it can benefit you. While this is a long read, you should be able to assess whether TaxJar is exactly what you need today.
Prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
For those who like to read, we’ll dive right into.
What exactly is TaxJar? Avalara, TaxJar, Or Taxamo
In 2013, TaxJar was established. TaxJar is an application that automatizes your reporting, filings and sales tax calculation. It is a solution for the entire life cycle. In addition, you can apply it across all of the sales channels you use to ensure compliance with your sales taxes. It simplifies the processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar has been used in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is widely used by owners of online businesses to make their business more neat and simple. Let’s take a look at the features and services offered by TaxJar.
Services and features
One of the first things you’ll want to check is that your accounting tax platform seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, you must keep everything in place. The most important thing is not to get a penalty for missing a single minor point.
TaxJar allows you to display your key metrics in one spot. This means that there is no need to gather information from multiple sources and organize it into a single platform. All you need to do is integrate TaxJar, and the platform will do the rest.
In addition, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of platforms they can integrate with:
TaxJar allows customers to make sales tax filings by hand or using their AutoFile feature. For this review, we’ll dig into both.
If you decide to do it manually, TaxJar will allow you to connect all your sales platforms. Once the time comes for the filing of income tax returns TaxJar will train you on managing these. It is up for you and your team members to complete everything in time. TaxJar is there to provide guidance on what you need to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out all forms by hand. Through this feature, everything is automated, from calculating sales taxes to recording and processing it. However, there might be extra fees if not part of the plan you chose.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to ease your accounting problems. All orders made through your e-commerce channels can be compiled into one dashboard using this platform. From there you and your team can access everything you require, including the list of transactions, reports and information.
The greatest benefit of this feature is that it allows you to automatically update every day. They not only let to know the amount you’ve accumulated, but they also help you track when your following payments are due.
The dashboard allows you to fully view the sales tax totals in your business. You can also export the data to CSV format. CSV file, if you want to use it to aid in accounting and financial planning processes or if you require it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep the track of all the sales avenues you use. This means that you don’t have to search for your documents when you’re in a pinch. Even even if you already have an accounting firm, the feature will make them more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time can help you allocate your funds more effectively. You’ll know better how much budget you have to cover other operating expenses.
The best part is that TaxJar offers tutorials and training not only on their platform, but everything connected to sales tax. You can look through their webinars, guides or blog posts for additional information. Apart from that the sales tax calculator should be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms provide amazing features, but they can be too expensive for businesses. This is why in this section we’ll examine TaxJar’s pricing levels and the features that each of these choices can provide you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan is priced at $19. They say it’s the most effective plan if you need help in filing and reporting. It also includes the tax on sales, 4 free yearly AutoFiles, and an CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale company manager, the plan will be perfect for you. It may not offer all the features offered by TaxJar but it comes with all the basics you require.
In addition, you can reach their support team with their support chart for email. Additionally, you’ll have access to their integration capabilities.
If you’re looking to get different from the basics, then the Professional plan could be the one for you. The price starts at $99 but it can go higher when you add additional features.
What is the difference from the starter plan?
In addition to accessing every one of Starter plan’s options, you also have access to their phone customer support access to APIs, as well as sophisticated CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you own a huge business, you might need to opt for premium plans instead. It comes with all the features that you require to help with your taxes. Moreover, they allow unlimited integrations with data imports, API integrations, team users, and AutoFiles.
They also have a staff that is devoted for managing the account. They don’t reveal how much the Premium plan costs you. Avalara, TaxJar, Or Taxamo
However, they did mention that this plan is customized for each user. Therefore, the cost will differ in line with what you require to run your business.
Luckily, you don’t have to bet your life on it to see if this platform is right for you. If you’re still looking into various options, they provide a 30-day free trial. This should be enough time to determine whether the service is an excellent fit for you.
Pros and Pros and
Now that we’ve covered all you must be aware of TaxJar Let’s relax. In order to sum up the whole thing we’ll go over the advantages and disadvantages of the use of TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides an online sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is possible to integrate it with other platforms
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies that have multiple sales channels and uses many platforms. If that sounds like what you do, then you should try this.
It’s not just a way to help you track your revenue and products however, it will also help you meet the deadlines you set. This is also an excellent platform for an accountant since they have tax Advisor program. You can find tips and gain knowledge from their workshops about taxes through it.
Utilizing TaxJar can allow you to save more time while keeping the track of each deadline and obligation you have to fulfill. If you’re living in a region with a lot of tax laws, this can surely help you wrap your mind around it. Avalara, TaxJar, Or Taxamo
However, if managing taxes is easy and straightforward, then TaxJar might not be a good expense. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track all of it. If you find the entire procedure simple to follow and you’re comfortable with it, you may be better off doing it on your own.
FAQ Avalara, TaxJar, Or Taxamo
What are the areas in which TaxJar offer API assistance?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transactions are in USdollars. If you’re using another currency, you’ll need to convert it to US$ before TaxJar will calculate the tax.