Taxes have always been one of the most difficult things to handle regardless of whether you run your own business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related tasks aren’t easy, particularly when you’re filled with tasks to complete. In the event that you do not have enough money to hire an accountant, performing the task on your own could be dangerous. If you miss one detail it could mean you need to repeat the process!
Almost everyone wants to avoid this step. However, since it’s mandatory, we have no choice.
So what can we do about it?
We can make our lives easier with tools such as TaxJar.
We’ll look at this well-known life-saving device and how it can assist you. Although this is quite an extensive read but you’ll be able to determine if TaxJar is exactly what you need today.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
But for those who prefer to read, we’ll dive right into.
What is TaxJar? Lydia Chen TaxJar
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reports, 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 your sales taxes. It simplifies the processes that require days to complete and finish within minutes.
TaxJar has been utilized in various industries like food and beverage companies, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is simple and organized. Let’s look into the benefits and features of TaxJar.
Features and services
One of the first things you’ll want to check is your tax-reporting platform is compatible along with sales funnels. If you’re selling through multiple channels, you must maintain everything in line. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar allows you to display your key metrics in one spot. So, there’s no need to collect data in multiple channels and sort it into a single platform. All you have to do is connect TaxJar, then the system will take care of the rest.
In addition, TaxJar also integrates with other platforms to assist with payments. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to file their sales taxes either manually or via the AutoFile feature. For our review we’ll dig into both.
If you choose to do it manually, TaxJar will allow you to connect all the sales channels you use. Once the time comes for filing tax returns for income TaxJar will train you on managing the tax returns. It is up to you and your team to complete the process within the timeframe. TaxJar will only provide guidance on what you need to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit the forms in a manual manner. This feature will ensure that everything will be automated, from calculating taxes on sales to recording and processing it. But, it is possible to incur extra fees if not part of the plan you choose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to help you with your accounting issues. The orders you place through your online channels can be put together into one dashboard using this platform. From there you and your team will have access to all the information you need, such as a list of your transactions, reports and information.
The best part about this feature is that they allow you to automatically update every day. Not only can they help you know how much you’ve earned and how much you’ve earned, but they also let you determine when your next payment is due.
Their dashboard can also allow 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 in your process of financial planning and accounting or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all the sales avenues you use. That means you won’t have to hunt for your paperwork whenever you’re in a pinch. Even if you already have your accountant, this feature can aid them in being more efficient.
Moreover, knowing the estimates for your sales tax in advance can help you allocate your funds better. You’ll know exactly how much budget you have for other operational expenses.
What’s more is that TaxJar offers tutorials and training and tutorials, not just for their platform but for anything related to sales tax. You can check out their webinars, guides, and blog for more details. Apart from that their sales tax calculator can be 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. Certain platforms have amazing capabilities, but they’re often too costly for your business. This is why in this section we’ll examine TaxJar’s pricing levels and what each of those options can offer you. At present, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They say it’s the most suitable plan for you if you need help in filing and reporting. It also 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 small business proprietor, then this program will be ideal for you. It might not include all of TaxJar’s features but it comes with all the basics you require.
You can also contact their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking for different from the standard features and options, then the Professional plan 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?
Apart from having access to all of the Starter plan’s features, you also get access to their phone customer support Access to APIs, phone support, and sophisticated CSV import. They also allow you to receive 12 free AutoFiles every year.
If you have a massive company, you may need to opt for an upgrade instead. It includes all of the features needed to aid in your tax preparation. In addition, they offer unlimited data import integrations, API integrations, team users and AutoFiles.
There is also a team dedicated in managing your accounts. They don’t reveal the amount that the Premium plan will cost you. Lydia Chen TaxJar
However, they did mention that this plan is customized to each user. The cost of the plan will be different depending on what you need for your business.
Luckily, you don’t have to risk your money to determine if this service 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 gauge whether the software is an excellent fit for you.
Pros and Cons
After we’ve gone over everything you should be aware of TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of the use of TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Has support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- 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
- Certain countries will not have access to the API feature
- Only applicable for USA customers
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then ought to try this.
Not only will it aid in tracking your revenue and products 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. You can find tips and get knowledge from their seminars regarding taxes via it.
Using TaxJar can allow you to save more time while keeping on top of each deadline or requirement you need to fulfill. If you live in an area with complex tax laws, this will definitely help you get your mind around it. Lydia Chen TaxJar
However, if managing taxes is easy If it isn’t, then TaxJar could be a waste of investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of everything. If you find the whole procedure easy to complete then you’re better off doing it on your own.
FAQ Lydia Chen TaxJar
What areas does TaxJar offer API support?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify with TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transaction amounts are n US$. If you’re using another currency, you’ll have to convert it to USdollars prior to when TaxJar determines the tax.