Taxes have always been among the most difficult tasks to complete regardless of whether you run a business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related work can be overwhelming, especially when you’re filled with tasks to complete. When you’re not able to afford enough money to engage an accountant doing it on your own could be dangerous. If you make a mistake, you might have to do it all over again!
Most people want to skip this step. But , as it’s a requirement and mandatory, there’s no other choice.
What can we do about it?
We can make our lives easier by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and how it can benefit you. While this is an extensive read it is possible to gauge whether TaxJar is exactly what you need right now.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What is TaxJar? Avalara Vs TaxJar
In 2013, TaxJar was established. TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. It’s a solution for all aspects of your sales tax cycle. Additionally, you can use it across all the sales channels you use to ensure that you are in compliance with sales taxes. It makes the process simpler that could require days to complete and finish within only a few minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is widely used by online business owners to make their business more simple and organized. Let’s explore their features and services.
Services and features
One of the first things you’ll need to make sure you have a tax accounting software seamlessly works well along with sales funnels. If you’re using multiple sales channels, it is essential to maintain everything in line. The most important thing is not to get a penalty for missing a single minor point.
TaxJar allows you to show your most important metrics in one place. This means that there is no need to gather data in multiple channels and sort it into one platform. All you have to do is integrate TaxJar, it will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of the platforms that they can connect with:
TaxJar lets customers submit their sales tax either manually or via their AutoFile feature. In this review, we’ll look at both.
If you opt to go it alone, TaxJar will allow you to connect all of those sales tools. When the time is right for filing tax returns for income The team will guide you on managing these. However, it will be up for you and your team to complete everything within the timeframe. TaxJar will only provide guidance on what you should do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit any forms manually. With this feature, everything will be automated from calculating sales tax in order to record and process it. But, it is possible to incur additional charges if they are you do not include this feature in the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be compiled into one dashboard using this platform. Once you’re on the platform you and your team will have access to all the information you need, like the list of transactions, reports, and the data.
The best part about this feature is that it lets you to update your account automatically each day. Not only will they let you know how much you’ve accumulated, but they also help you track when your following payment is due.
Their dashboard also allows you to see the sales tax totals within your company. You can also export the data in the form of a CSV file if you need it in your accounting and financial planning processes or if your team requires it for central reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of your sales channels. It means you don’t need to search for your documents whenever you’re when you’re in a pinch. Even even if you already have an accountant, this feature will aid them in being more efficient.
Additionally, knowing the figures for the sales tax you pay in advance can help you allocate your funds more effectively. You’ll know exactly how much budget you have for other operational costs.
The best part is that TaxJar offers tutorials and training and tutorials, not just for their platform , but also all things connected to sales tax. You can check out their webinars, guides, and blog for more info. Additionally the sales tax calculator should be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms provide amazing capabilities, but they’re often too costly for your business. This is why in this section we’ll examine TaxJar’s pricing structures and the features that each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the best plan to help you with filing requirements and reporting. It includes sales tax reporting, 4 free yearly AutoFiles, and the option of a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small company owner, this plan could be perfect for you. It may not have all the features of TaxJar however, it does include the basic features you require.
You can also contact their customer support via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking to get different from the basic features and options, then the Professional plan could be the one for you. It starts at $99, but you can increase it when you add additional features.
How different is it from the starter plan?
Apart from having access to all of the Starter plan’s features, you also get access to the support of their customer service via phone, API access, and advanced CSV import. You can also receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose premium plans instead. It has all of the features you need to aid in your tax preparation. Moreover, they allow unlimited integrations with data imports as well as API integrationsfor team users and AutoFiles.
They also have a staff who are devoted for managing the account. They don’t reveal how much the Premium plan is going to cost. Avalara Vs TaxJar
But they did state that the plan is custom-made for each user. So the costs will vary depending on what you need for your company.
Luckily, you don’t have to bet your life on it to determine if this service is right for you. If you’re still considering different options, they offer a 30-day free trial. This should give you enough time to determine if the platform is an excellent fit for you.
Pros and Cons
We’ve covered everything you need to know about TaxJar let’s take a breather. To sum it all up we’ll go over the advantages and disadvantages of using TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers an online 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
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only valid for USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies with many sales channels and utilizes numerous platforms. If that’s what you’re doing, then you should try this.
It’s not just a way to help you track the sales and profits of your business It can also help you meet the deadlines you set. This is also an excellent platform for an accountant since they offer tax Advisor program. You can find tips and gain knowledge from their workshops regarding taxes via it.
The use of TaxJar can help you get more done while keeping the track of each deadline or requirement you need to fulfill. If you’re living in a region with a lot of tax regulations, this will definitely help you get your head around it. Avalara Vs TaxJar
If handling your taxes is straightforward and straightforward, then TaxJar could be a waste of investment. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of everything. If you find the whole process easy to do and you’re comfortable with it, you may be better off doing it on your own.
FAQ Avalara Vs TaxJar
What are the areas in which TaxJar provide API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I connect Shopify together with TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions’ amounts are in USdollars. If you’re using a different currency, you will need to convert it into USdollars prior to when TaxJar determines your tax.