Taxes have always been one of the hardest things to do, whether you’re running your own business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related tasks can be overwhelming, especially when you’re packed with things to do. When you’re not able to afford the funds to hire an accountant, doing it on your own could be risky. If you overlook one thing it could mean you have to do it all over again!
Nearly everyone would prefer to skipping this step. However, since it’s mandatory to be done, we can’t choose not to.
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 lengthy but you’ll be able to assess whether TaxJar is exactly what you need today.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
For those who like to read, we’ll dive right into.
What exactly is TaxJar? How Does TaxJar Handle Returns
Founded in 2013, TaxJar is an application that automatizes your filings, reports, and sales tax calculations. TaxJar is a solution to the entire life cycle. Additionally, you can use it in all of your sales channels to ensure that you are in compliance with your sales taxes. It makes the process simpler that could take days to complete and is completed in 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 explore the features and services offered by TaxJar.
Services and features
One of the first things you’ll need to make sure you have a tax accounting system seamlessly works well with your sales channel. If you’re using multiple sales channels, it is essential to maintain everything in line. The last thing you want is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your key metrics in one spot. So, there’s no need to gather data from different channels and sort it into one platform. All you need to do is connect TaxJar and the platform will handle the rest.
Other than that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list of the platforms that they can connect with:
TaxJar allows clients to submit their sales tax either manually or via the AutoFile feature. In this review, we’ll look into both.
If you opt to do it manually, TaxJar will allow you to connect all those sales tools. When it comes time to filing tax returns for income The team will guide you on how to handle the tax returns. It is up to you and your team members to complete everything on time. TaxJar is only there to help you understand what you should accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out the forms in a manual manner. With this feature, everything will be automated from calculating sales tax through recording, and then processing it. But, it is possible to incur additional costs if the feature is not part of the plan you choose.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting problems. Your orders from your e-commerce channels can be put together into one dashboard using this platform. Once you’re on the platform, you and your team can access everything you require, including an inventory of your transactions, reports, and the data.
The most appealing aspect of this feature is that it lets you to automatically update every day. They not only let you keep track of how much you’ve collected and how much you’ve earned, but they also let you track when your following payment is due.
The dashboard allows you to see the overall sales taxes in your business. You can also export the data in the form of a CSV file, if you want to use it for your financial planning and accounting processes 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. This means that you don’t have to scramble for your documents when you’re in a pinch. Even if you already have your accountant, this function can make them more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have to cover other operational expenses.
But what’s even better is that TaxJar offers training and tutorials not only on their platform, but everything connected to sales tax. Check out their guides, webinars, and blog for more details. In addition their sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. That’s why for this section, we’ll look into TaxJar’s pricing levels and what each of these options can offer you. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They say it’s the best plan to help you in filing and reporting. It comes with taxes on sales and sales as well as 4 free yearly AutoFiles, and the option of a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a small-scale company owner, this plan will be ideal for you. It might not include all of TaxJar’s features, but it has all the basics you require.
Additionally, you can contact the support team via their support chart for email. Additionally, you’ll have access to their integration capabilities.
If you’re looking for that is more than the basic features and options, then the Professional plan might be the right one for you. It’s priced at $99 but it can go higher by adding custom features.
So how different is it from the starter plan?
In addition to accessing every one of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and the ability to do advanced CSV import. You can also have 12 free AutoFiles each year.
If you run a large business, you might need to go for premium plans instead. It includes all of the features you need to aid in your tax preparation. Moreover, they allow unlimited data import integrations Integrations with APIs, teams of members as well as AutoFiles.
They also have a team who are devoted in managing your accounts. However, they don’t disclose the amount that the Premium plan costs you. How Does TaxJar Handle Returns
But they did state that the plan is custom-made for every user. Therefore, the cost will differ depending on what you need for your business.
Luckily, you don’t have to bet your life on it to determine if this service is the right one for you. If you’re still considering other options, they have 30 days of free trial. It should give you enough time to determine whether the software is an excellent fit for you.
Pros and Cons
We’ve covered everything you need to be aware of TaxJar let’s take a break. To summarize, here are the pros and cons of making use of TaxJar for 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
- Offers Taxes on sales online calculator
- Support Service Team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms
- It allows you to monitor multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only valid for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid down, TaxJar can be a great platform businesses with multiple sales channels and uses plenty of platforms. If that’s what you’re doing, then ought to try this.
It’s not just a way to help you track your revenue and products, but it can assist you in meeting your deadlines. It is also a great option for accountants as they offer a Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar will help you reduce time and keep the track of each deadline or requirement you need to meet. If you’re in a place with complicated tax laws, this will definitely help you get your head around the subject. How Does TaxJar Handle Returns
But if handling your taxes is simple If it isn’t, then TaxJar might not be a good expense. If you have only one or two channels of sales, TaxJar won’t be needed to track everything. Moreover, if you’re finding the entire procedure easy to complete and you’re comfortable with it, you may be better off doing it on your own.
FAQ How Does TaxJar Handle Returns
Which areas does TaxJar provide API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I integrate Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transactions’ amounts are in USdollars. If you’re using another currency, you will need to convert it into USUSD prior to when TaxJar determines your tax.