Taxes have always been among the most difficult tasks to complete regardless of whether you’re running your own business or not. Even more so if you do not have a background in finance or accounting. Tax-related tasks aren’t easy, particularly when you’re full of things to be done. When you’re not able to afford the budget to hire an accountant, doing it on yourself can be dangerous. If you miss one detail, you might have to redo things again!
Nearly everyone would prefer to avoid this step. But since it’s required to be done, we can’t choose not to.
What can we do ?
We can make our lives easier by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can benefit you. Even though this is an extensive read it is possible to assess whether TaxJar is exactly what you need in the present.
Are you looking video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
But for those who prefer to read, we’ll dive right into.
What exactly is TaxJar? Magento2 Setting Up TaxJar
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reports, filings, and sales tax calculations. It is a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it across all of your sales channels to ensure compliance with your sales taxes. It streamlines processes that require days to complete and finish within just a few minutes.
TaxJar has been used in a variety of industries, including food and beverage companies, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is extensively used by owners of online businesses to make their business more organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Services and features
One of the most important things you’ll want to check you have a tax accounting system perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you must keep everything in place. The final thing you would like is to face a penalty due to missing a single minor point.
TaxJar lets you display your critical data in one location. That way, there’s no need to collect data in multiple channels and sort it into one platform. All you need to do is integrate TaxJar, then the system will take care of the rest.
Other than that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows clients to make sales tax filings by hand or using their AutoFile feature. For this review, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of those sales tools. When it comes time to the filing of income tax returns, the team will instruct you on how to manage the tax returns. But, it is up to you and your team members to finish the tax returns on time. TaxJar is there to provide guidance on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out the forms in a manual manner. Through this feature, everything will be automated from calculating sales taxes to recording and processing it. There could be additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting problems. The orders you place through your online channels can be combined into a single dashboard through this platform. From there you and your staff will have access to everything you require, including a list of your transactions, reports and the data.
The greatest benefit of the feature you’ve chosen is it allows you to update automatically every day. They not only let you keep track of how much you’ve earned however, they can also help you track when your following payments are due.
The dashboard allows you to fully view the sales tax totals in your business. Additionally, you can export the information as 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.
Training and Streamlining
TaxJar helps you organize and keep on top of all your sales channels. This means that you don’t have to scramble for your documents when you need them when you’re in a pinch. Even when you already have your accountant, this feature will make them more efficient.
Additionally, knowing the figures for your sales tax in advance will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have available for other operating expenses.
What’s more is that TaxJar offers training and tutorials not only for their platform but for anything related to sales tax. You can check out their guides, webinars, or blog posts for additional info. In addition, their sales tax calculator should be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms offer superb features, but they can be too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing tiers and the features that each of these plans can offer. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. They say it’s the most suitable plan for you to help you with filing requirements or reporting. It comes with taxes on sales and sales as well as four free yearly AutoFiles, and a CSV import. With the starter plan, you can access their AI tax tips.
If you’re a small company owner, this plan will be ideal for you. It might not include all of TaxJar’s features but it comes with the essentials that you need.
In addition, you can reach the support team via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking to get that is more than the basic features, then the Professional plan might be the right one for you. It’s priced at $99 but it can go higher when you add additional features.
So how different is it from the starter plan?
Apart from having access to each of Starter plan’s features, you also have the support of their customer service via phone, API access, and advanced CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive enterprise, you may want to go for premium plans instead. It includes all of the features you need to help with your taxes. In addition, they offer unlimited import integrations of data as well as Integrations with APIs, teams of users and AutoFiles.
They also have a team dedicated for managing the account. They don’t reveal how much the Premium plan will cost you. Magento2 Setting Up TaxJar
However, they did say that this plan is tailor-fit for each user. Therefore, the cost will differ depending on what you need for your company.
Luckily, you don’t have to bet your life on it to determine if this service is right for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to determine if the platform is the right choice for you.
Pros and Cons
We’ve covered everything you should know about TaxJar let’s take a breather. To sum it all up we’ll go over the advantages and disadvantages of the use of TaxJar for your company.
- Has the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- 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 have access to the API feature.
- Only valid for USA customers.
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid out TaxJar can be a great platform companies that have numerous sales channels, and that utilizes numerous platforms. If that sounds like what you’re doing, then you ought to try this.
It’s not just a way to aid in tracking your products and revenue It can help you meet your deadlines. It’s also an excellent platform for an accountant since they provide the Tax Advisor program. You can get tips and learn from their sessions on taxes by using it.
Using TaxJar can help you save more time while keeping the track of each deadline or requirement you need to meet. If you live in an area with complex tax laws, this will surely help you wrap your mind around it. Magento2 Setting Up TaxJar
But if handling your taxes is simple, then TaxJar might not be a good expense. If you have only one or two channels for 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 Magento2 Setting Up TaxJar
What areas does TaxJar provide API assistance?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transactions are in US$. If you’re using another currency, you will need to convert it to USUSD before TaxJar determines your tax.