Taxes are always one of the most difficult things to handle regardless of whether you run your own business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is filled with tasks to complete. In the event that you do not have enough money to hire an accountant, making it your own could be risky. If you miss one detail and you don’t know it, you may need to repeat the process!
Most people want to avoid this step. However, since it’s mandatory and mandatory, there’s no other choice.
So what is the best way to deal with it?
It is always possible to make our lives easier by using tools like TaxJar.
We’ll look at this life-saving tool and explain how it can help you. While this is an extensive read, you should be able to assess whether TaxJar is exactly what you need right now.
Prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
For those who like to read, let’s dive right in.
What is TaxJar? Colorado TaxJar Sales Tax
In 2013, TaxJar was established. TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize it in 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 can be completed in a matter of just a few minutes.
TaxJar has been used in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by business owners who run online businesses to ensure that everything is simple and organized. Let’s take a look at their features and services.
Services and features
One of the first things you’ll need to make sure is your tax-reporting system is compatible along with sales funnels. If you’re using multiple sales channels, you need to maintain everything in line. The last thing you want is to get a penalty for missing a single minor point.
TaxJar allows you to display your critical metrics in one spot. That way, there’s no need to gather data in multiple channels and then organize it on one platform. All you have to do is connect TaxJar then the system will take care of the rest.
Apart from that, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to make sales tax filings by hand or using TaxJar’s AutoFile feature. In our review we’ll look into both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When it comes time to the filing of income tax returns, the team will instruct you on how to manage these. It is up to you and your team members to complete the process within the timeframe. TaxJar will only provide guidance on what you have to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out all forms by hand. Through this feature, everything will be automated from calculating taxes on sales through recording, and then processing it. However, there might be extra fees if you do not include this feature in the plan you select.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be combined 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 an inventory of your transactions, reports, and the data.
The best part about this feature is that it lets you to automatically update every day. Not only can they help to know the amount you’ve earned however, they can also help you determine when your next payment is due.
Their dashboard can also allow you to see the total sales tax in your business. It is also possible to export the data to CSV format. CSV file in case you require it to aid in 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 the sales avenues you use. It means you don’t need to search for your documents when you’re in a pinch. Even if you already have your accountant, this function will aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know better how much budget you have to cover other operating costs.
The best part is that TaxJar provides training and tutorials not only on their platform, but everything connected to sales tax. You can check out their guides, webinars, and blog for more details. Apart from that, their sales tax calculator should be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb features, but they’re sometimes too costly for the business you run. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of those choices can provide you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan starts at $19. They claim that it’s the best plan to help you in filing and reporting. It includes taxes on sales and sales as well as four autofiles for free each year, and the option of a CSV import. Even with the starter plan, you have access to their AI tax recommendations.
If you’re a small business proprietor, then this program could be perfect for you. It might not include all the features offered by TaxJar however, it does include all the basics you require.
In addition, you can reach their support team with their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking to get different from the standard features Professional may be the best option for you. The price starts at $99 however, it could go up when you add additional features.
So how different is it from the original plan?
In addition to having access to every one of Starter plan’s features, you also get access to their support via phone Access to APIs, phone support, and the ability to do advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you run a large business, you might need to opt for the Premium plan instead. It has all of the features needed to aid in your tax preparation. Additionally, they permit unlimited integrations with data imports as well as API integrationsfor team members as well as AutoFiles.
There is also a team who are devoted to managing your account. However, they don’t disclose how much the Premium plan will cost you. Colorado TaxJar Sales Tax
However, they did mention that the plan is custom-made for each user. So the costs will vary in line with what you require for your company.
Fortunately, you don’t need to bet your life on it to find out if the platform is for you. If you’re still looking into other options, they have 30 days of free trial. This should give you enough time to gauge if the platform is an excellent fit for you.
Pros and Cons
Now that we’ve covered all 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 for your company.
- Has a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers Taxes on sales online 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
- Certain countries will not be able to access the API feature
- Only valid for USA customers.
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar can be a great platform companies that have numerous sales channels, and that utilizes numerous platforms. If this sounds like the way you’re doing, then you ought to try this.
It’s not just a way to assist you in keeping track of your products and revenue, but it can help you meet your deadlines. It’s also an excellent opportunity for accountants since they provide tax Advisor program. You can find tips and get knowledge from their seminars regarding taxes via it.
The use of TaxJar can help you reduce time and keep track of every deadline or requirement you need to fulfill. If you’re in an area with complex tax regulations, this will definitely help you get your head around the subject. Colorado TaxJar Sales Tax
But if handling taxes is easy and straightforward, then TaxJar could be a waste of expense. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. If you find the entire procedure easy to complete and you’re comfortable with it, you may be better off doing it by yourself.
FAQ Colorado TaxJar Sales Tax
What are the areas in which TaxJar provide API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. The transactions’ amounts are in USdollars. If you’re using another currency, you will need to convert it into USUSD before TaxJar determines the tax.