Taxes are always one of the hardest things to do, whether you’re running a business or not. More so if you don’t have a background in finance or accounting. Tax-related work aren’t easy, particularly when your whole day is packed with things to do. When you’re not able to afford enough money to engage an accountant doing it on your own can be risky. If you make a mistake and you don’t know it, you may have to do it all over again!
Almost everyone wants to skipping this step. But since it’s required and mandatory, there’s no other choice.
What can we do ?
We can simplify our lives with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving device and how it can benefit you. While this is lengthy it is possible to determine if TaxJar is the tool you require right now.
Are you looking to watch videos instead? Check out 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, then we’ll dive right into.
What exactly is TaxJar? Can TaxJar Be Used Retroactively
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculation. It’s a solution for your entire sales tax life cycle. Additionally, you can use it across all of your sales channels to ensure compliance with sales tax requirements. It streamlines processes that can take days to complete, and is completed in just a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is widely used by owners of online businesses to ensure that everything is simple and organized. Let’s explore the benefits and features of TaxJar.
Services and features
One of the first things you’ll want to check is that your accounting tax software is compatible with your sales channel. If you’re using multiple sales channels, it is essential to maintain everything in line. The final thing you would like is to be penalized for missing a single minor point.
TaxJar allows you to display your critical metrics in one place. This means that there is no need to collect information from multiple sources and organize it into one platform. All you have to do is integrate TaxJar then the system will do the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows customers to file their sales taxes by hand or using the AutoFile feature. In the purpose of this article, we’ll dig into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When it comes time to filing income tax returns TaxJar will train you on how to manage these. But, it is up to you and your team to finish the tax returns within the timeframe. TaxJar is there to help you understand what you have to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. Through this feature, everything is automated, from calculating sales tax through recording, and then processing it. However, there might be additional costs if the feature is you do not include this feature in the plan you select.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting woes. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. From there, you and your team will have access to everything you need, like a list of your transactions, reports and information.
The most appealing aspect of this option is the fact that it allows you to update your account automatically each day. They not only let you know how much you’ve collected, but they also help you track when your following payment is due.
Their dashboard also allows you to fully view the overall sales taxes in your business. It is also possible to export your data to a CSV file, if you want to use it in your accounting and financial planning processes or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to search for your documents when you’re when you’re in a pinch. Even even if you already have an accounting firm, the feature will make them more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds better. You’ll know better how much budget you have available for other operating expenses.
The best part is that TaxJar offers training and tutorials, not just for their platform but all things related to sales tax. You can check out their guides, webinars, or blog posts for additional info. In addition the sales tax calculator is beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb features, but they’re sometimes too expensive for businesses. This is why in this section, we’ll look into TaxJar’s pricing levels and what each of those choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the best plan for those who need assistance in filing and reporting. It also includes taxes on sales and sales as well as four free yearly AutoFiles, and an CSV import. Even with the basic plan, you can access their AI tax tips.
If you’re a small company manager, the plan could be ideal for you. It may not offer all the features of TaxJar but it comes with the basic features you require.
In addition, you can reach their customer support via their support chart for email. You’ll also have access to their integration features.
If you’re looking to get different from the basic features Professional might be the right one for you. It starts at $99, however, it could go up when you add additional features.
What is the difference from the basic plan?
In addition to accessing all of the Starter plan’s features, you also have the support of their customer service via phone access to APIs, as well as advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you own a huge enterprise, you may want to go for the Premium plan instead. It comes with all the features needed to help with your taxes. Moreover, they allow unlimited import integrations of data Integrations with APIs, teams of users as well as AutoFiles.
They also have a team who are devoted in managing your accounts. They don’t reveal how much the Premium plan is going to cost. Can TaxJar Be Used Retroactively
However, they did mention that this plan is customized for each user. The cost of the plan will be different according to what you require to run your business.
Luckily, you don’t have to gamble your money just to determine if this service is for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to determine whether the service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to be aware of TaxJar Let’s relax. To summarize we’ll go over 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 can help you save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms
- It allows you to monitor multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only applicable to USA customers.
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid down, TaxJar is an excellent platform for businesses with multiple sales channels and uses numerous platforms. If that sounds like what you’re doing, then ought to try this.
Not only will it help you track your revenue and products, but it can assist you in meeting your deadlines. It’s also an excellent opportunity for accountants since they have tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
Using TaxJar can help you reduce time and keep the track of each deadline or requirement you need to meet. If you live in an area with complex tax laws, this will surely help you wrap your mind around it. Can TaxJar Be Used Retroactively
But if handling your taxes is straightforward, then TaxJar may be an unnecessary investment. If you only have one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you find the whole procedure easy to complete then you’re better off doing it on your own.
FAQ Can TaxJar Be Used Retroactively
Which areas does TaxJar offer API support?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can connect your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions are in US$. If you’re using another currency, you’ll have to convert it into USUSD before TaxJar can calculate your tax.