Taxes have always been one of the most difficult things to handle regardless of whether you’re running your own business or not. More so if you don’t have a degree in finance or accounting. Tax-related work can be overwhelming, particularly when your whole day is packed with things to do. When you’re not able to afford the budget to employ an accountant, making it your own could be dangerous. If you make a mistake it could mean you have to do it all over again!
Almost everyone wants to avoid this step. However, since it’s mandatory, we have no choice.
What can we do about it?
We can always make our lives easier by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and explain how it can help you. Even though this is a long read, you should be able to assess whether TaxJar is what you need today.
Do you prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
If you prefer to read, let’s dive right in.
What is TaxJar Does TaxJar Collect Municipal Taxes Correctly And Not By Zipcode
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculation. It’s a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it across all of your channels of sales to make sure you’re in compliance with sales tax requirements. It simplifies the processes that can take days to complete, and finish within minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is used extensively by business owners who run online businesses to make their business more organized and straightforward. Let’s explore the benefits and features of TaxJar.
Features and services
One of the first things you’ll need to make sure is that your accounting tax platform perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you must keep everything in place. The last thing you want is to be penalized for not paying attention to a minor thing.
TaxJar allows you to display your critical data in one location. So, there’s no need to gather data in multiple channels and sort it into one platform. All you need to do is to integrate TaxJar, it will do the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of the platforms they can integrate with:
TaxJar allows clients to make sales tax filings either manually or via the AutoFile feature. For this review, we’ll dig into both.
If you opt to do it manually, TaxJar will allow you to connect all those sales tools. Once the time comes for filing tax returns for income, the team will instruct you on how to handle them. It is up to you and your staff to complete everything in time. TaxJar will only help you understand what you have to accomplish, but not manage 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. This feature will ensure that everything will be automated from calculating sales taxes to recording and processing it. However, there might be additional costs if the feature is not included in the plan you chose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to ease your accounting issues. All orders made through your e-commerce channels can be compiled into a single dashboard via this platform. Once you’re on the platform you and your staff can access everything you need, such as an inventory of your transactions, reports and information.
The greatest benefit of the feature you’ve chosen is it allows you to update automatically every day. Not only can they help you know how much you’ve accumulated however, they can also help you determine when your next payments are due.
Their dashboard can also allow you to fully view the total sales tax within your company. You can also export your data to a CSV file in case you require it to aid in financial planning and accounting processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the sales avenues you use. That means you won’t have to scramble for your documents when you’re in the event of a need. Even even if you already have an accounting firm, the feature can aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance can help you allocate your funds more effectively. You’ll know better how much budget you have available for other operating expenses.
What’s more is that TaxJar provides training and tutorials, not just for their platform , but also all things related to sales tax. You can check out their webinars, guides, as well as their blog to find more info. Apart from that, their sales tax calculator should be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of 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 plans can offer. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. They claim that it’s the best plan to help you with filing requirements and reporting. It comes with the tax on sales, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a smaller business owner, this plan could be ideal for you. It may not offer all of TaxJar’s features but it comes with the essentials that you need.
Additionally, you can contact the support team via their email support chart. Additionally, you’ll have access to their integration capabilities.
If you’re looking to get that is more than the basics Professional may be the best option for you. The price starts at $99 but it can go higher by adding custom features.
What is the difference from the basic plan?
Apart from having access to every one of 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 have 12 free AutoFiles each year.
If you have a massive business, you might need to opt for premium plans instead. It has all of the features needed to aid in your tax preparation. Additionally, they permit unlimited data import integrations as well as API integrationsfor team users and AutoFiles.
There is also a team who are devoted for managing the account. However, they don’t disclose the price of the Premium plan. costs you. Does TaxJar Collect Municipal Taxes Correctly And Not By Zipcode
However, they did mention that this plan is customized for every user. The cost of the plan will be different according to what you require for your business.
Luckily, you don’t have to risk your money to determine if this service is the right one for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. This should be enough time to determine if the platform is the right choice for you.
Pros and Pros and
After we’ve gone over everything you must be aware of TaxJar let’s take a breather. To summarize, here are the pros and cons of using TaxJar for your company.
- Has the Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms
- It allows you to monitor multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable to USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies with multiple sales channels and uses plenty of platforms. If this sounds like the way you do, then you ought to try this.
Not only can it assist you in keeping track of the sales and profits of your business It can also help you meet the deadlines you set. This is also an excellent opportunity for accountants since they provide the Tax Advisor program. You can get tips and get knowledge from their seminars regarding taxes via it.
The use of TaxJar can help you reduce time and keep on top of each deadline or requirement you need to fulfill. If you’re living in a place with complicated tax regulations, this will surely help you wrap your mind around it. Does TaxJar Collect Municipal Taxes Correctly And Not By Zipcode
But if handling your taxes is simple, 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 all of it. If you find the entire procedure simple to follow, you might be better to do it on your own.
FAQ Does TaxJar Collect Municipal Taxes Correctly And Not By Zipcode
What areas does TaxJar offer API assistance?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to make it easier to monitor and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All of the transactions are in USdollars. If you’re using a different currency, you’ll have to convert it to USdollars before TaxJar can calculate the tax.