Taxes are always one of the most difficult things to handle, whether you’re running your own business or not. More so if you don’t have a background in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re filled with tasks to complete. When you’re not able to afford the funds to employ an accountant, performing the task on your own could be dangerous. If you miss one detail and you don’t know it, you may have to redo things again!
Almost everyone wants to avoid this step. However, since it’s mandatory, we have no choice.
So , what can we do ?
We can always make our lives easier by using tools like TaxJar.
This article will take a look at this life-saving device and how it can benefit you. Although this is quite lengthy, you should be able to determine if TaxJar is what you need today.
Do you prefer video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
If you prefer to read, then let’s get right into it.
What exactly is TaxJar? Moving From Magento 1 To Magento 2 + TaxJar
The company was founded in 2013 TaxJar is an application that automatizes your reports, filings, and sales tax calculations. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of your channels of sales to make sure you’re in compliance with sales tax requirements. It makes the process simpler that could require days to complete and finish within just a few minutes.
TaxJar is used in a variety of industries, including food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is used extensively by online business owners to make their business more simple and organized. Let’s explore their features and services.
Features and services
One of the most important things you’ll need to ensure you have a tax accounting system seamlessly works well along with sales funnels. If you’re using multiple sales channels, it is essential to maintain everything in line. The last thing you want is to be penalized for missing a single minor point.
TaxJar allows you to show your critical metrics in one place. So, there’s no need to collect information from multiple sources and sort it into a single platform. All you need to do is to integrate TaxJar, it will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist with payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to make sales tax filings manually or through the AutoFile feature. For our review we’ll take a look into both.
If you choose to go it alone, TaxJar will allow you to connect your sales platforms. When it comes time to filing income tax returns TaxJar will train you on how to handle these. But, it is up to you and your team members to complete everything on time. TaxJar is there to provide guidance on what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. With this feature, everything will be automated, from calculating sales taxes in order to record and process them. But, it is possible to incur additional costs if the feature is you do not include this feature in the plan you select.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to assist you with your accounting issues. The orders you place through your online channels can be combined into a single dashboard via this platform. From there you and your team will have access to everything you need, like the list of transactions, reports, as well as information.
The best part about the feature you’ve chosen is they allow you to update automatically every day. Not only will they let you know how much you’ve earned and how much you’ve earned, but they also let you keep track of when the next payments are due.
Their dashboard can also allow you to fully view the sales tax totals in your business. It is also possible to export the data as a CSV file, if you want to use it in your financial planning and accounting processes or if you require it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to hunt for your paperwork whenever you’re in the event of a need. Even when you already have your accountant, this feature will 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 better how much budget you have to cover other operating expenses.
The best part is that TaxJar offers training and tutorials not only on their platform, but everything related to sales tax. You can look through their guides, webinars, or blog posts for additional info. In addition, their sales tax calculator can be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing features, but they can be too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing structures and what each of those options can offer you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan is priced at $19. They claim that it’s the most suitable plan for you for those who need assistance with filing requirements or reporting. It comes with the tax on sales, 4 autofiles for free each year, and a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a small business owner, this plan should be ideal for you. It might not include all the features offered by TaxJar however, it does include all the basics you require.
In addition, you can reach their support team with their support chart for email. Additionally, you’ll have access to their integration features.
If you’re looking for something that is more than the basic features Professional could be the one for you. It’s priced at $99 but it can go higher if you add custom features.
How different is it from the starter plan?
In addition to having access to every one of Starter plan’s features, you also have their support via phone access to APIs, as well as the ability to do advanced CSV import. You can also receive 12 free AutoFiles every year.
If you own a huge company, you may need to opt for an upgrade instead. It has all of the features you need to help with your taxes. Moreover, they allow unlimited data import integrations, API integrationsfor team users and AutoFiles.
There is also a team who are devoted for managing the account. They don’t reveal how much the Premium plan costs you. Moving From Magento 1 To Magento 2 + TaxJar
However, they did say that the plan is custom-made to each user. So the costs will vary according to what you require to run your business.
It’s a good thing that you don’t have to bet your life on it to determine if this service is right for you. If you’re still considering various options, they provide 30 days of free trial. It should give you enough time to see whether the service is the right choice for you.
Pros and Cons
We’ve covered everything you must know about TaxJar let’s take a breather. In order to sum up the whole thing we’ll go over the advantages and disadvantages of making use of TaxJar for your company.
- There is the Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support Service Team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies that have multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then you should try this.
Not only can it help you track your products and revenue however, it will assist you in meeting your deadlines. It’s also an excellent platform for an accountant since they provide tax Advisor program. There are tips to follow and learn from their sessions regarding taxes via it.
Utilizing TaxJar will help you reduce time and keep track of every deadline and obligation you have to meet. If you live in a place with complicated tax laws, this will surely help you wrap your head around the subject. Moving From Magento 1 To Magento 2 + TaxJar
However, if managing your taxes is simple, then TaxJar may be an unnecessary expense. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. If you find the whole procedure easy to complete, you might be better off doing it by yourself.
FAQ Moving From Magento 1 To Magento 2 + TaxJar
What areas does TaxJar offer API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together with TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions’ amounts are in US$. If you’re using another currency, you’ll have to convert it to US$ prior to when TaxJar will calculate your tax.