Taxes have always been among the most difficult tasks to complete, whether you’re running your own business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related issues aren’t easy, particularly when your whole day is full of things to be done. If you don’t have the funds to hire an accountant, performing the task 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!
Most people want to avoid this step. But , as it’s a requirement, we have no choice.
So what can we do ?
We can always make our lives easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can assist you. Even though this is a long read it is possible to gauge whether TaxJar is the tool you require today.
Do you prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
If you prefer to read, then we’ll dive right into.
What exactly is TaxJar? Does TaxJar Automatically Charge The Correct Tax To Buyers
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. It is a solution for the entire life cycle. Additionally, you can use it across all of the sales channels you use to ensure compliance with sales taxes. It makes the process simpler that could take days to complete and finish within just a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to keep everything organized and straightforward. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the first things you’ll need to make sure is your tax-reporting system is compatible with your sales channel. If you’re selling through multiple channels, you must ensure that everything is in order. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar lets you display your most important metrics in one place. This means that there is no need to gather information from multiple sources and sort it into a single platform. All you need to do is to integrate TaxJar, then the system will do all the rest.
In addition, TaxJar also integrates with other platforms that can help with payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar lets customers make sales tax filings by hand or using the AutoFile feature. In the purpose of this article, we’ll dig into both.
If you choose to go it alone, TaxJar will allow you to connect all the sales channels you use. Once the time comes for filing income tax returns The team will guide you on how to handle them. However, it will be up for you and your team to finish the tax returns on time. TaxJar is only there to help you understand what you need to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out any forms manually. This feature will ensure that everything will be automated, from calculating taxes on sales through recording, and then processing it. But, it is possible to incur additional charges if they are 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 woes. The orders you place through your online channels can be put together into a single dashboard through this platform. From there you and your staff will have access to all the information you need, like an inventory of your transactions, reports and the data.
The most appealing aspect of this option is the fact that they allow you to automatically update every day. They not only let to know the amount you’ve accumulated and how much you’ve earned, but they also let you keep track of when the next payments are due.
The dashboard allows you to fully view the total sales tax for your business. You can also export your data as the form of a CSV file if you need it for your financial planning and accounting processes or if you require it to run centralized reports.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to hunt for your paperwork when you need them when you’re in a pinch. Even when you already have your accountant, this function will make them more efficient.
Additionally, knowing the figures 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 costs.
But what’s even better is that TaxJar offers tutorials and training not only for their platform but for anything related to sales tax. You can look through their webinars, guides and blog for more 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 know how crucial it is to determine your budget. Some platforms offer superb capabilities, but they’re often too expensive for businesses. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of those plans can offer. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. The company claims that it’s the best plan to help you with filing requirements or reporting. It also includes sales tax reporting, 4 annual AutoFiles for free, as well as the option of a CSV import. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a small-scale company manager, the plan could be perfect for you. It may not have all the features of TaxJar but it comes with the basic features you require.
You can also contact their support team with their email support chart. Additionally, you’ll have access to their integration capabilities.
If you’re looking for something different from the basic features, then the Professional plan could be the one for you. It starts at $99, but you can increase it if you add custom features.
So how different is it from the original plan?
Apart from having access to each of Starter plan’s features, you also get access to their phone customer support access to APIs, as well as sophisticated CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large business, you might need to choose an upgrade instead. It comes with all the features that you require to make your tax filing easier. Moreover, they allow unlimited import integrations of data, Integrations with APIs, teams of members and AutoFiles.
There is also a team dedicated to managing your account. They don’t reveal the amount that the Premium plan is going to cost. Does TaxJar Automatically Charge The Correct Tax To Buyers
But they did state that this plan is tailor-fit to each user. So the costs will vary according to what you require for your business.
It’s a good thing that you don’t have to bet your life on it to find out if the platform is right for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. It should give you enough time to gauge whether the service is the right choice for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar Let’s relax. To sum it all up Here are the pros and cons of using TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers an online sales tax calculator
- Support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- 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
- Some countries won’t have access to the API feature
- Only applicable to USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies that have many sales channels and utilizes plenty of platforms. If this sounds like the way you do, then you must try TaxJar.
Not only can it aid in tracking your products and revenue, but it can help you meet your deadlines. It is also a great platform for an accountant since they offer the Tax Advisor program. There are tips to follow and learn from their sessions on taxes by using it.
Utilizing TaxJar will help you get more done while keeping the track of each deadline and obligation you have to meet. If you’re in a region with a lot of tax laws, this can certainly help you to get your head around the subject. Does TaxJar Automatically Charge The Correct Tax To Buyers
If handling taxes is easy and straightforward, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the whole process easy to do then you’re better in doing it all by yourself.
FAQ Does TaxJar Automatically Charge The Correct Tax To Buyers
What areas does TaxJar offer API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transaction amounts are n USdollars. If you’re using another currency, you’ll need to convert it to US$ prior to when TaxJar determines your tax.