Taxes are always one of the most difficult things to handle regardless of whether you’re running your own business or not. Particularly if you don’t have a background in accounting or finance. Tax-related issues can be overwhelming, particularly when you’re full of things to be done. When you’re not able to afford the funds to employ an accountant, doing it on your own could be dangerous. If you make a mistake, you might have to redo things again!
Most people want to avoid this step. But , as it’s a requirement, we have no choice.
So , what can we do about it?
It is always possible to make our lives easier with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. Even though this is an extensive read it is possible to assess whether TaxJar is what you need in the present.
Are you looking video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, let’s dive right in.
What is TaxJar? Is TaxJar Worth It
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reporting, filings and sales tax calculation. TaxJar is a solution to all aspects of your sales tax cycle. In addition, you can apply it across all of your sales channels to ensure compliance with sales taxes. It makes the process simpler that could require days to complete and can be completed in a matter of only a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is widely used by business owners who run online businesses to keep everything neat and simple. Let’s look into their features and services.
Services and features
One of the most important things you’ll want to check is that your accounting tax platform seamlessly works well with your sales channel. If you’re using multiple sales channels, you need to keep everything in place. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar allows you to show your critical data in one location. This means that there is no requirement to collect data in multiple channels and organize it into one platform. All you need to do is to integrate TaxJar, and the platform will do the rest.
Apart from that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows customers to make sales tax filings either manually or via TaxJar’s AutoFile feature. For the purpose of this article, we’ll look at both.
If you decide to go it alone, TaxJar will allow you to connect all of your sales platforms. Once the time comes for filing income tax returns TaxJar will train you on how to manage the tax returns. But, it is up for you and your team to complete the process in time. TaxJar is there to provide guidance on what you have to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit any forms manually. With this feature, everything will be automated, from calculating sales taxes in order to record and process 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 help you with your accounting issues. The orders you place through your online channels can be compiled into one dashboard using this platform. Once you’re on the platform you and your team can access everything you require, including the list of transactions, reports, and information.
The greatest benefit of this feature is that it lets you to automatically update every day. Not only can they help you know how much you’ve accumulated, but they also help you track when your following payment is due.
The dashboard allows users to view in detail the sales tax totals within your company. Additionally, you can export the data as the form of a CSV file if you need it in your process of financial planning and accounting or if you require it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. That means you won’t have 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 in advance can help you allocate your funds more effectively. You’ll know exactly how much budget you have for other operational costs.
The best part is that TaxJar offers training and tutorials, not just for their platform but all things connected to sales tax. You can check out their guides, webinars, or blog posts for additional info. In addition, their sales tax calculator is useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb features, but they can be too expensive for businesses. This is why in this section, we’ll look into TaxJar’s pricing structures and what each of those choices can provide you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan costs $19. They claim that it’s the most suitable plan for you to help you with filing requirements or reporting. It includes the tax on sales, 4 free yearly AutoFiles, and the option of a CSV import. With the starter plan, you can access their AI tax recommendations.
If you’re a smaller business manager, the plan should be ideal for you. It may not have all the features offered by TaxJar however, it does include the basic features you require.
Additionally, you can contact their support team with their support chart for email. You’ll also be able to use their integration features.
If you’re looking for a bit more than just the basic features Professional could be the one for you. The price starts at $99 but it can go higher when you add additional features.
So how different is it from the original plan?
In addition to having access to every one of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and sophisticated CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you have a massive company, you may need to choose premium plans instead. It comes with all the features needed to help with your taxes. Additionally, they permit unlimited import integrations of data as well as API integrations, team members, and AutoFiles.
They also have a staff who are devoted for managing the account. They don’t reveal how much the Premium plan is going to cost. Is TaxJar Worth It
However, they did say that this plan is tailor-fit to each user. Therefore, the cost will differ according to what you require for your business.
Fortunately, you don’t need to bet your life on it to see if this platform is for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. It should give you enough time to determine whether the software is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you must 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 to reduce time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It can be integrated with other platforms
- It allows you to monitor multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable to USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything clearly laid out TaxJar provides a fantastic platform to companies with numerous sales channels, and that utilizes many platforms. If that’s what you’re doing, then ought to try this.
It’s not just a way to assist you in keeping track of the sales and profits of your business however, it will also help you meet the deadlines you set. It is also a great option for accountants as they have tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
The use of TaxJar can allow you to reduce time and keep the track of each deadline or requirement you need to fulfill. If you’re living in a place with complicated tax regulations, this will surely help you wrap your head around the subject. Is TaxJar Worth It
However, if managing your taxes is straightforward If it isn’t, then TaxJar could be a waste of expense. If you have only one or two channels for sales, TaxJar won’t be needed to track all of it. If you find the whole procedure simple to follow, you might be better to do it by yourself.
FAQ Is TaxJar Worth It
What areas does TaxJar offer API support?
TaxJar currently works with countries like Australia, 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 with TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All of the transactions are in USdollars. If you’re using another currency, you’ll need to convert it into US$ before TaxJar determines the tax.