Taxes have always been among the most difficult things to handle regardless of whether you run a business or not. Particularly if you don’t have a background in finance or accounting. Tax-related issues aren’t easy, particularly when you’re full of things to be done. When you’re not able to afford enough money to engage an accountant doing it on your own can be risky. If you overlook one thing it could mean you have to do it all over again!
Nearly everyone would prefer to skipping this step. However, since it’s mandatory and mandatory, there’s no other choice.
So , what can we do about it?
We can make our lives easier by using tools like TaxJar.
Here we’ll take a look at this popular life-saving tool and how it can assist you. While this is a long read, you should be able to determine if TaxJar is what you need in the present.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What exactly is TaxJar? Categorize Transactions TaxJar
The company was founded in 2013 TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it across all the sales channels you use to make sure you’re in compliance with your sales taxes. It streamlines processes that take days to complete and finish within just a few minutes.
TaxJar is used in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is widely used by online business owners to keep everything neat and simple. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to ensure is your tax-reporting platform perfectly integrates along with sales funnels. If you’re selling through multiple channels, it is essential to maintain everything in line. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar allows you to display your key metrics in one place. So, there’s no need to gather data in multiple channels and then organize it on a single platform. All you need to do is integrate TaxJar, and the platform will do the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list of the platforms they are able to integrate with:
TaxJar allows clients to submit their sales tax either manually or via their AutoFile feature. For our review we’ll look at both.
If you choose to go it alone, TaxJar will allow you to connect all of those sales tools. When the time is right for the filing of income tax returns The team will guide you on managing them. However, it will be up for you and your staff to complete everything within the timeframe. TaxJar is there to provide guidance on what you have to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out the forms in a manual manner. Through this feature, everything will be automated from calculating sales tax in order to record and process them. There could be extra fees if you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting woes. 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 can access everything you need, such as a list of your transactions, reports and data.
The most appealing aspect of the feature you’ve chosen is it allows you to automatically update every day. Not only will they let you know how much you’ve collected, but they also help you keep track of when the next payments are due.
Their dashboard also allows you to see the total sales tax within your company. Additionally, you can export your data to a CSV file if you need it in your accounting and financial planning processes or if your team requires it to run centralized reports.
Training and Streamlining
TaxJar helps you organize and keep on top of all the channels you sell through. It means you don’t need to hunt for your paperwork whenever you’re in a pinch. Even when you already have your accountant, this feature will help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will allow you to allocate your funds better. You’ll know better how much budget you have available for other operational costs.
The best part is that TaxJar offers training and tutorials, not just for their platform , but also everything that has to do with sales tax. You can check out their guides, webinars, or blog posts for additional information. Apart from that the sales tax calculator is helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms provide amazing capabilities, but they’re often too expensive for businesses. For this reason we’ll take a look at TaxJar’s pricing tiers and what each of these choices can provide you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the most suitable plan for you for those who need assistance with filing requirements or reporting. It includes taxes on sales and sales as well as four free yearly AutoFiles, and a CSV import. With the starter plan, you can access their AI tax tips.
If you’re a smaller business proprietor, then this program will be ideal for you. It might not include all the features of TaxJar, but it has the basic features you require.
You can also contact their support team with their email support chart. You’ll also be able to use their integration features.
If you’re looking for something that is more than the basics, then the Professional plan might be the right one for you. It’s priced at $99 but it can go higher when you add additional features.
So how different is it from the original 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 Access to APIs, phone support, and advanced CSV import. You can also get 12 AutoFiles for free each year.
If you run a large business, you might need to choose premium plans instead. It includes all of the features that you require to help with your taxes. Additionally, they permit unlimited integrations with data imports as well as Integrations with APIs, teams of members as well as AutoFiles.
There is also a team dedicated to managing your account. However, they don’t disclose the price of the Premium plan. costs you. Categorize Transactions TaxJar
But they did state that this plan is tailor-fit to each user. The cost of the plan will be different according to what you require for your business.
Luckily, you don’t have to bet your life on it to see if this platform is the right one for you. If you’re still considering other options, they have the opportunity to try a free trial for 30 days. It should give you enough time to see whether the service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a break. To summarize we’ll go over the pros and cons of the use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features to reduce 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 is able to be integrated with other platforms
- It allows you to monitor multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes plenty of platforms. If this sounds like the way you’re doing, then you must try TaxJar.
Not only will it help you track your products and revenue It can assist you in meeting the deadlines you set. This is also an excellent platform for an accountant since they have a Tax Advisor program. You can get tips and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar can help you save more time while keeping track of every deadline and obligation you have to meet. If you live in an area with complex tax regulations, this will surely help you wrap your head around the subject. Categorize Transactions TaxJar
However, if managing taxes is easy, then TaxJar may be an unnecessary expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to track everything. If you find the whole process easy to do then you’re better to do it on your own.
FAQ Categorize Transactions TaxJar
What areas does TaxJar provide API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions’ amounts are in USdollars. If you’re using a different currency, you’ll need to convert it into USdollars before TaxJar will calculate the tax.