Taxes have always been one of the hardest things to do regardless of whether you’re running a business or not. Even more so if you do not have a degree in accounting or finance. Tax-related work can be overwhelming, especially when your whole day is full of things to be done. In the event that you do not have 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 redo things again!
Almost everyone wants to skipping this step. However, since it’s mandatory to be done, we can’t choose not to.
So what is the best way to deal with it?
We can simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can assist you. While this is a long read, you should be able to determine if TaxJar is the tool you require today.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
But for those who prefer to read, then let’s dive right in.
What is TaxJar? Does TaxJar Collect Sales Tax For Me
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. It is a solution for your entire sales tax life cycle. In addition, you can apply it in all of the sales channels you use to make sure you’re in compliance with sales tax requirements. It streamlines processes that take days to complete and is completed in just a few only a few minutes.
TaxJar has been utilized in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by online business owners to make their business more 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 your tax-reporting software seamlessly works well with your sales channel. If you’re using multiple sales channels, you must keep everything in place. The last thing you want is to get a penalty for missing a single minor point.
TaxJar allows you to display your most important metrics in one spot. So, there’s no need to collect data from different channels and organize it into one platform. All you have to do is integrate TaxJar, then the system will handle all the rest.
Apart from that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms that they can connect with:
TaxJar lets customers submit their sales tax manually or through their AutoFile feature. In our review we’ll take a look into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of your sales platforms. Once the time comes for the filing of income tax returns The team will guide you on managing these. However, it will be up to you and your team to complete everything on time. TaxJar is only there to guide you on what you need to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out any forms manually. Through this feature, everything will be automated, from calculating sales taxes through recording, and then processing them. There could be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting issues. 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 will have access to all the information you need, such as an inventory of your transactions, reports and the data.
The most appealing aspect of this option is the fact that it allows you to update your account automatically each day. Not only can they help to know the amount you’ve collected however, they can also help you determine when your next payment is due.
Their dashboard also allows you to fully view the total sales tax in your business. You can also export the data in a CSV file, if you want to use it in your process of financial planning and accounting or if you require it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all your sales channels. 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 feature can help them be more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will help you plan your funds more effectively. You’ll know exactly how much budget you have available for other operational costs.
But what’s even better is that TaxJar offers tutorials and training not only for their platform , but also all things that has to do with sales tax. You can check out their guides, webinars, or blog posts for additional info. Additionally, their sales tax calculator can be beneficial when you’re planning to do everything on your own.
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. This is why in this section we’ll examine TaxJar’s pricing levels and what each of those options can offer you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan costs $19. They claim that it’s the best plan to help you in filing and reporting. It also includes taxes on sales and sales as well as 4 autofiles for free each year, and a CSV import. Even with the starter plan, you can access their AI tax recommendations.
If you’re a small company manager, the plan should be ideal for you. It may not have all of TaxJar’s features however, it does include the essentials that you need.
In addition, you can reach their customer support via their email support chart. Additionally, you’ll have access to their integration capabilities.
If you’re looking for that is more than the basics and options, then the Professional plan could be the one for you. It starts at $99, but it can go higher by adding custom features.
What is the difference from the original plan?
Apart from having access to all of the Starter plan’s features, you also have their support via phone, API access, and advanced CSV import. You can also receive 12 free AutoFiles every year.
If you run a large enterprise, you may want to opt for premium plans instead. It comes with all the features you need to aid in your tax preparation. In addition, they offer unlimited import integrations of data API integrations, team members, and AutoFiles.
They also have a team dedicated for managing the account. But, they don’t divulge the price of the Premium plan. costs you. Does TaxJar Collect Sales Tax For Me
However, they did say that the plan is custom-made for every user. The cost of the plan will be different in line with what you require for your company.
Luckily, you don’t have to bet your life on it to see if this platform is for you. If you’re still considering various options, they provide a 30-day free trial. This should be enough time to determine whether the software is an excellent fit for you.
Pros and Pros and
Now that we’ve covered all you should be aware of TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of the use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features help 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
- The company offers a 30-day trial for free.
- It can be integrated with other platforms
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only applicable to USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything laid down, TaxJar is an excellent platform for businesses with multiple sales channels and uses many platforms. If this sounds like the way you do, then you should try this.
It’s not just a way to help you track the sales and profits of your business however, it will help you meet your deadlines. It’s also an excellent opportunity for accountants since they provide the Tax Advisor program. You can find tips and learn from their sessions about taxes through it.
The use of TaxJar can allow you to get more done while keeping the track of each deadline and obligation you have to fulfill. If you’re living in a place with complicated tax regulations, this will definitely help you get your head around the subject. Does TaxJar Collect Sales Tax For Me
However, if managing taxes is easy, 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 process easy to do and you’re comfortable with it, you may be better to do it by yourself.
FAQ Does TaxJar Collect Sales Tax For Me
What are the areas in which TaxJar provide API support?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with TaxJar?
Yes. You can sync your Shopify account to TaxJar to make it easier to monitor and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in USdollars. If you’re using a different currency, you’ll need to convert it to USUSD before TaxJar determines the tax.