Taxes are always one of the hardest things to do regardless of whether you’re running a business or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is packed with things to do. In the event that you do not have enough money to hire an accountant, performing the task on your own could be risky. If you miss one detail, you might have to do it all over again!
Nearly everyone would prefer to avoid this step. But since it’s required, we have no choice.
So what can we do about it?
We can always make life easier with tools such as TaxJar.
We’ll look at this well-known life-saving tool and how it can assist you. Although this is quite an extensive read it is possible to determine if TaxJar is what you need today.
Do you prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also give a complete review of the features offered by TaxJar.
But for those who prefer to read, then we’ll dive right into.
What exactly is TaxJar? Ruby TaxJar
Founded in 2013, TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Additionally, you can use it in all of your channels of sales to ensure compliance with sales tax requirements. It streamlines processes that require days to complete and finish within only a few minutes.
TaxJar has been used in various industries like food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is used extensively by online business owners to make their business more neat and simple. Let’s look into the benefits and features of TaxJar.
Services and features
One of the most important things you’ll want to check you have a tax accounting platform seamlessly works well with your sales channel. If you’re selling through multiple channels, you need to keep everything in place. The last thing you want is to face a penalty due to overlooking just one minor detail.
TaxJar allows you to show your key metrics in one spot. That way, there’s no requirement to collect information from multiple sources and sort it into one platform. All you need to do is to integrate TaxJar then the system will take care of the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms they are able to integrate with:
TaxJar lets customers submit their sales tax either manually or via TaxJar’s AutoFile feature. For our review we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. Once the time comes for the filing of income tax returns, the team will instruct you on how to handle these. However, it will be up for you and your team to finish the tax returns on time. TaxJar is there to guide you on what you have to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out the forms in a manual manner. This feature will ensure that everything will be automated, from calculating sales tax in order to record and process it. But, it is possible to incur additional charges if they are not included in the plan you choose.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to assist you with your accounting issues. All orders made through your e-commerce channels can be combined into a single dashboard through this platform. Once you’re on the platform you and your staff can access everything you need, like a list of your transactions, reports, and data.
The greatest benefit of the feature you’ve chosen is it allows you to automatically update every day. Not only can they help you know how much you’ve accumulated and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard can also allow you to fully view the total sales tax in your business. You can also export the data as the form of a CSV file in case you require it for your financial planning and accounting processes or if you require it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of your sales channels. It means you don’t need to search for your documents when you’re when you’re in a pinch. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will help you plan your funds better. You’ll know better how much budget you have available for other operating expenses.
But what’s even better is that TaxJar offers tutorials and training not only on their platform, but everything related to sales tax. Check out their webinars, guides or blog posts for additional details. In addition their sales tax calculator is beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Certain platforms have amazing features, but they’re sometimes too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and what each of those options can offer you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They say it’s the most effective plan to help you in filing and reporting. It includes sales tax reporting, four free yearly AutoFiles, and a CSV import. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a small business manager, the plan could be ideal for you. It may not offer all the features of TaxJar however, it does include the basic features you require.
Additionally, you can contact their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking for that is more than the basics and options, then the Professional plan could be the one for you. It’s priced at $99 but you can increase it by adding custom features.
So how different is it from the basic 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 Access to APIs, phone support, and advanced CSV import. You can also get 12 AutoFiles for free each year.
If you run a large enterprise, you may want to choose premium plans instead. It includes all of the features needed to help with your taxes. In addition, they offer unlimited integrations with data imports, API integrationsfor team members as well as AutoFiles.
There is also a team who are devoted in managing your accounts. But, they don’t divulge the price of the Premium plan. will cost you. Ruby TaxJar
However, they did say that this plan is customized to each user. The cost of the plan will be different in line with what you require for your company.
It’s a good thing that you don’t have to gamble your money just to find out if the platform is for you. If you’re still considering different options, they offer the opportunity to try a free trial for 30 days. It should give you enough time to see whether the service is a good fit for you.
Pros and Pros and
After we’ve gone over everything you must be aware of TaxJar Let’s relax. To summarize, 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 save time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It can be integrated with other platforms.
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only valid for USA customers.
- Owners and accountants should recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for businesses with many sales channels and utilizes plenty of platforms. If that sounds like what you’re doing, then must try TaxJar.
Not only can it help you track your revenue and products It can help you meet your deadlines. It’s also an excellent opportunity for accountants since they offer tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
Using TaxJar will help you get more done while keeping on top of each deadline and requirement you have to meet. If you’re in a region with a lot of tax laws, this can certainly help you to get your head around it. Ruby TaxJar
But if handling taxes is easy, then TaxJar might not be a good investment. If you have only one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the whole process easy to do and you’re comfortable with it, you may be better in doing it all on your own.
FAQ Ruby TaxJar
Which areas does TaxJar offer API assistance?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify with TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions are in US$. If you’re using another currency, you will need to convert it into USdollars prior to when TaxJar determines your tax.