Taxes have always been one of the most difficult tasks to complete, whether you’re running an enterprise or not. Particularly if you don’t have any experience in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re packed with things to do. If you don’t have the funds to engage an accountant performing the task on your own could be risky. If you miss one detail, you might need to repeat the process!
Almost everyone wants to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
What is the best way to deal with it?
We can always make our lives easier with tools such as TaxJar.
We’ll look at this well-known life-saving device and how it can help you. Although this is quite a long read it is possible to gauge whether TaxJar is exactly what you need today.
Are you looking video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
For those who like to read, then let’s get right into it.
What exactly is TaxJar? How To Set Up TaxJar
In 2013, TaxJar was established. TaxJar is an application that automatizes your reports, filings, and sales tax calculation. It is a solution for the entire life cycle. In addition, you can apply it in all of your channels of sales 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 is used in different industries such as food and beverage companies, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is used extensively by owners of online businesses to keep everything organized and straightforward. Let’s look into the benefits and features of TaxJar.
Services and features
One of the most important things you’ll need to ensure is your tax-reporting platform seamlessly works well with your sales channel. If you have multiple sales channels, it is essential to ensure that everything is in order. The final thing you would like is to get a penalty for overlooking just one minor detail.
TaxJar allows you to display your key data in one location. That way, there’s no requirement to collect data in multiple channels and then organize it on a single platform. All you need to do is integrate TaxJar, it will do the rest.
Other than that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms they can integrate with:
TaxJar allows customers to make sales tax filings either manually or via the AutoFile feature. For the purpose of this article, we’ll dig at both.
If you opt to go it alone, TaxJar will allow you to connect all the sales channels you use. Once the time comes for filing income tax returns TaxJar will train you on how to handle them. However, it will be up for you and your team to finish the tax returns within the timeframe. TaxJar is there to help you understand what you need to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out all forms by hand. With this feature, everything is automated, from calculating sales taxes through recording, and then processing them. There could be additional costs if the feature is not included in the plan you select.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. Once you’re on the platform you and your staff will have access to everything you need, like a list of your transactions, reports, and information.
The best part about this feature is that it allows you to update your account automatically each day. They not only let you know how much you’ve earned however, they can also help you determine when your next payments are due.
Their dashboard can also allow you to see the total sales tax for your business. You can also export the data to CSV format. CSV file if you need it to aid in financial planning and accounting processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar helps organize and keep track of all of the channels you sell through. It means you don’t need to search for your documents when you need them in the event of a need. Even if you already have your accountant, this feature can help them be more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will help you plan your funds better. You’ll be aware of the budget you have for other operational expenses.
The best part is that TaxJar offers tutorials and training, not just on their platform, but everything related to sales tax. Check out their webinars, guides as well as their blog to find more info. Apart from that the sales tax calculator is 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 offer superb features, but they’re sometimes too costly for your business. This is why in this section we’ll examine TaxJar’s pricing levels and the features that each of these choices can provide you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They claim that it’s the most suitable plan for you for those who need assistance in filing and reporting. It includes sales tax reporting, four autofiles for free each year, and the option of a CSV import. Even with the starter plan, you will be able to access their AI tax advice.
If you’re a smaller business owner, this plan should be ideal for you. It may not offer all the features of TaxJar, but it has the essentials that you need.
In addition, you can reach their support team with their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking to get that is more than the basic features and options, then the Professional plan may be the best option for you. It starts at $99, however, it could go up if you add custom features.
How different is it from the original plan?
In addition to accessing each of Starter plan’s features, you also have the support of their customer service via phone Access to APIs, phone support, and advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you run a large company, you may need to opt for the Premium plan instead. It has all of the features needed to help with your taxes. Moreover, they allow unlimited import integrations of data, API integrationsfor team members, and AutoFiles.
They also have a staff that is devoted for managing the account. However, they don’t disclose the amount that the Premium plan is going to cost. How To Set Up TaxJar
But they did state that the plan is custom-made to each user. So the costs will vary in line with what you require for your business.
Luckily, you don’t have to gamble your money just to see if this platform is for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. It should give you enough time to gauge whether the service is a good fit for you.
Pros and Pros and
We’ve covered everything you should be aware of TaxJar let’s take a breather. To summarize Here are the pros and cons of using TaxJar for your company.
- There is the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Provides an online sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable to USA customers.
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid down, TaxJar can be a great platform companies that have many sales channels and utilizes plenty of platforms. If that sounds like what you’re doing, then should try this.
Not only can it aid in tracking 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 have a Tax Advisor program. There are tips to follow and learn from their sessions about taxes through it.
Using TaxJar can allow you to reduce time and keep on top of each deadline or requirement you need to meet. If you’re in a place with complicated tax laws, this will surely help you wrap your head around it. How To Set Up TaxJar
If handling your taxes is straightforward, then TaxJar may be an unnecessary investment. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the whole procedure easy to complete then you’re better in doing it all by yourself.
FAQ How To Set Up TaxJar
What are the areas in which TaxJar offer API support?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions are in US$. If you’re using another currency, you’ll have to convert it to USdollars prior to when TaxJar can calculate your tax.