Taxes have always been one of the most difficult tasks to complete, whether you’re running your own business or not. Particularly if you don’t have a background 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 the budget to engage an accountant making it your own could be dangerous. If you miss one detail and you don’t know it, you may have to do it all over again!
Nearly everyone would prefer to avoid this step. But since it’s required to be done, we can’t choose not to.
What is the best way to deal with it?
We can make our lives easier by using tools like TaxJar.
This article will take a look at this popular life-saving device and how it can benefit you. Although this is quite an extensive read but you’ll be able to gauge whether TaxJar is the tool you require in the present.
Do you prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
If you prefer to read, let’s dive right in.
What is TaxJar? Ecommerce TaxJar
Founded in 2013, TaxJar is an application that automatizes your filings, reports, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. Furthermore, you can utilize it across all your sales channels to make sure you’re in compliance with your sales taxes. It makes the process simpler that could require days to complete and finish within just a few minutes.
TaxJar has been utilized in various industries like 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 keep everything neat and simple. Let’s explore the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to ensure is that your accounting tax system is compatible along with sales funnels. If you’re using multiple sales channels, it is essential to maintain everything in line. The final thing you would like is to be penalized for missing a single minor point.
TaxJar lets you display your most important data in one location. That way, there’s no need to collect information from multiple sources and sort it into a single platform. All you need to do is integrate TaxJar, then the system will do the rest.
Apart from that, TaxJar also integrates with other platforms that help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows clients to submit their sales tax manually or through the AutoFile feature. In the purpose of this article, we’ll take a look at both.
If you choose to go it alone, TaxJar will allow you to connect the sales channels you use. When it comes time to filing income tax returns, the team will instruct you on managing them. It is up for you and your staff to finish the tax returns within the timeframe. TaxJar is only there to provide guidance on what you have to accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out any forms manually. With this feature, everything will be automated from calculating taxes on sales to recording and processing it. However, there might be extra fees if not included in the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to assist you with your accounting woes. All orders made through your e-commerce channels can be combined into a single dashboard via this platform. From there, you and your team will have access to everything you need, like a list of your transactions, reports, and information.
The best part about the feature you’ve chosen is it allows you to automatically update every day. They not only let you know how much you’ve earned, but they also help you keep track of when the next payment is due.
Their dashboard also allows users to view in detail the overall sales taxes in your business. Additionally, you can export your data as the form of a CSV file if you need it for your accounting and financial planning processes or if your team needs it to run centralized reports.
Training and Streamlining
TaxJar helps you organize and keep the track of all the sales avenues you use. This means that you don’t have to hunt for your paperwork when you need them in the event of a need. Even when you already have your accounting firm, the feature can make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your funds better. You’ll know exactly how much budget you have for other operating costs.
But what’s even better is that TaxJar offers training and tutorials, not just for their platform , but also all things that has to do with sales tax. Check out their guides, webinars, and blog for more info. In addition, their sales tax calculator is beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to determine your budget. Some platforms provide amazing features, but they can be too costly for your business. That’s why for this section, we’ll look into TaxJar’s pricing levels and what each of those choices can provide you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the best plan to help you with filing requirements or reporting. It also includes taxes on sales and sales as well as four autofiles for free each year, and an CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale company proprietor, then this program will be ideal for you. It may not have all of TaxJar’s features, but it has the essentials that you need.
Additionally, you can contact their support team with their email support chart. You’ll also be able to use their integration tools.
If you’re looking for something that is more than the basics Professional could be the one for you. It’s priced at $99 however, it could go up if you add custom features.
How different is it from the starter plan?
In addition to accessing all of the Starter plan’s features, you also have their phone customer support access to APIs, as well as the ability to do advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you run a large enterprise, you may want to choose the Premium plan instead. It has all of the features you need to aid in your tax preparation. Additionally, they permit unlimited integrations with data imports as well as Integrations with APIs, teams of members as well as AutoFiles.
They also have a team who are devoted in managing your accounts. They don’t reveal the amount that the Premium plan will cost you. Ecommerce TaxJar
However, they did say that this plan is tailor-fit to each user. The cost of the plan will be different depending on what you need to run your business.
Fortunately, you don’t need to gamble your money just to see if this platform is right for you. If you’re still looking into various options, they provide 30 days of free trial. It should give you enough time to see if the platform is a good fit for you.
Pros and Cons
Now that we’ve covered all you need to know about TaxJar let’s take a break. To sum it all up Here are the pros and cons of the use of TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it 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 have access to the API feature.
- Only valid for USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies with multiple sales channels and uses plenty of platforms. If that’s what you do, then you ought to try this.
Not only will it assist you in keeping track of your products and revenue, but it can also help you meet your deadlines. This is also an excellent opportunity for accountants 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 allow you to save more time while keeping on top of each deadline and requirement you have to fulfill. If you live in a region with a lot of tax regulations, this will definitely help you get your mind around it. Ecommerce TaxJar
If handling taxes is easy If it isn’t, then TaxJar could be a waste of investment. If you only have one or two channels for sales, TaxJar won’t be needed to keep track of everything. Moreover, if you find the entire process easy to do then you’re better to do it by yourself.
FAQ Ecommerce TaxJar
What are the areas in which TaxJar offer API assistance?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. The transactions are in USdollars. If you’re using a different currency, you’ll have to convert it into US$ before TaxJar determines your tax.