Taxes have always been among the hardest things to do regardless of whether you’re running a business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related work aren’t easy, particularly when your whole day is filled with tasks to complete. If you don’t have the funds to hire an accountant, doing it on your own could be risky. If you make a mistake and you don’t know it, you may need to repeat the process!
Almost everyone wants to skip this step. But , as it’s a requirement and mandatory, there’s no other choice.
So what can we do about it?
It is always possible to make life easier with tools such as TaxJar.
This article will take a look at this popular life-saving tool and how it can benefit you. While this is lengthy it is possible to gauge whether TaxJar is the tool you require right now.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar? How TaxJar Works
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reports, filings, and sales tax calculation. It’s a solution for the entire life cycle. Additionally, you can use it in all of your channels of sales to make sure you’re in compliance with sales taxes. It makes the process simpler that could can take days to complete, and can be completed in a matter of minutes.
TaxJar has been used in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to make their business more organized and straightforward. Let’s look into the features and services offered by TaxJar.
Features and services
One of the most important things you’ll need to ensure is that your accounting tax platform seamlessly works well along with sales funnels. If you have multiple sales channels, you need to maintain everything in line. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar allows you to show your critical metrics in one place. That way, there’s no requirement to collect data in multiple channels and then organize it on one platform. All you have to do is integrate TaxJar, then the system will take care of the rest.
In addition, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to make sales tax filings by hand or using the AutoFile feature. For our review we’ll dig at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect your sales platforms. When the time is right for the filing of income tax returns The team will guide you on how to handle these. However, it will be up for you and your team members to finish the tax returns in time. TaxJar will only provide guidance on what you need to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you won’t need to fill out any forms manually. Through this feature, everything will be automated from calculating sales tax through recording, and then processing them. But, it is possible to incur extra fees if not included in the plan you chose.
Sales Tax Reports
As we mentioned, you can use TaxJar to help you with your accounting woes. The orders you place through your online channels can be combined 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 the list of transactions, reports, and the data.
The most appealing aspect of this option is the fact that it lets you to update your account automatically each day. Not only will they let to know the amount you’ve earned however, they can also help you keep track of when the next payments are due.
The dashboard allows you to fully view the total sales tax within your company. Additionally, you can export the information as a CSV file if you need it in your accounting and financial planning processes or if your team needs it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all your sales channels. This means that you don’t have to search for your documents whenever you’re in a pinch. Even if you already have your accountant, this feature can help them be more efficient.
Additionally, knowing the figures for your sales tax in advance can help you allocate your funds better. You’ll know exactly how much budget you have available for other operational expenses.
The best part is that TaxJar offers tutorials and training, not just for their platform , but also all things connected to sales tax. Check out their guides, webinars, and blog for more information. Apart from that, their sales tax calculator should be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. For this reason we’ll take a look at TaxJar’s pricing tiers and what each of those plans can offer. At present, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan is priced at $19. They claim that it’s the most effective plan to help you with filing requirements or reporting. It comes with taxes on sales and sales as well as four annual AutoFiles for free, as well as a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small company owner, this plan should be perfect for you. It might not include all of TaxJar’s features but it comes with 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 capabilities.
If you’re looking for something a bit more than just the basics and options, then the Professional plan might be the right one for you. The price starts at $99 but it can go higher if you add custom features.
What is the difference from the original plan?
In addition to having access to all of the Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and sophisticated CSV import. You can also get 12 AutoFiles for free each year.
If you run a large company, you may need to go for premium plans instead. It includes all of the features needed to aid in your tax preparation. Moreover, they allow unlimited import integrations of data, API integrations, team members, and AutoFiles.
They also have a team who are devoted for managing the account. But, they don’t divulge the amount that the Premium plan will cost you. How TaxJar Works
But they did state that this plan is customized to each user. Therefore, the cost will differ according to what you require to run your business.
Luckily, you don’t have to bet your life on it to see if this platform is right for you. If you’re still considering other options, they have 30 days of free trial. It should give you enough time to see if the platform is a good fit for you.
Pros and Pros and
After we’ve gone over everything you should know about TaxJar let’s take a break. In order to sum up the whole thing Here are the pros and cons of the use of TaxJar to run your business.
- Has a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers Taxes on sales online calculator
- Support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It can be integrated 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 have access to the API feature.
- Only applicable to USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies that have multiple sales channels and uses numerous platforms. If this sounds like the way you do, then you must try TaxJar.
Not only can it assist you in keeping track of your revenue and products It can also help you meet your deadlines. It is also a great platform for an accountant since they provide the Tax Advisor program. You can get tips and learn from their sessions regarding taxes via it.
The use of TaxJar can help you reduce time and keep track of every deadline and obligation you have to fulfill. If you live in a place with complicated tax laws, this will certainly help you to get your mind around it. How TaxJar Works
However, if managing your taxes is simple If it isn’t, then TaxJar could be a waste of expense. If you only have one or two channels of sales, TaxJar won’t be needed to track all of it. If you’re finding the entire process easy to do and you’re comfortable with it, you may be better to do it by yourself.
FAQ How TaxJar Works
What are the areas in which TaxJar provide API assistance?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can connect your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions’ amounts are in USdollars. If you’re using a different currency, you will need to convert it into USUSD before TaxJar can calculate your tax.