Taxes are always one of the most difficult things to handle, whether you’re running your own business or not. Even more so if you do not have a degree in accounting or finance. Tax-related tasks aren’t easy, particularly when your whole day is filled with tasks to complete. In the event that you do not have the funds to employ an accountant, performing the task on your own could be risky. If you make a mistake, you might have to do it all over again!
Nearly everyone would prefer to avoid this step. But since it’s required and mandatory, there’s no other choice.
What can we do ?
We can always make life easier by using tools like TaxJar.
We’ll look at this popular life-saving device and how it can benefit you. Even though this is a long read, you should be able to gauge whether TaxJar is exactly what you need right now.
Do you prefer watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
If you prefer to read, we’ll dive right into.
What exactly is TaxJar? Ryan Thompson TaxJar Magento
Founded in 2013, TaxJar is a platform that helps automate your reports, filings, and sales tax calculations. It is a solution for your entire sales tax life cycle. Furthermore, you can utilize it across all of the sales channels you use to ensure compliance with sales taxes. It streamlines processes that take days to complete and is completed in just a few minutes.
TaxJar has been utilized in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is extensively used by online business owners to ensure that everything is organized and straightforward. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the first things you’ll need to make sure is that your accounting tax system perfectly integrates with your sales channel. If you’re selling through multiple channels, you need to maintain everything in line. The most important thing is not to be penalized for not paying attention to a minor thing.
TaxJar allows you to show your most important data in one location. That way, there’s no need to gather data in multiple channels and then organize it on one platform. All you have to do is to integrate TaxJar, then the system will do the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to file their sales taxes manually or through their AutoFile feature. For the purpose of this article, we’ll look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. Once the time comes for the filing of income tax returns TaxJar will train you on how to handle them. However, it will be up to you and your team to complete the process within the timeframe. TaxJar is only there to provide guidance on what you have to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. Through this feature, everything will be automated from calculating sales tax in order to record and process it. However, there might be extra fees if not part of the plan you chose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to assist you with your accounting issues. The orders you place through your online channels can be compiled into a single dashboard through this platform. Once you’re on the platform you and your staff will have access to all the information you require, including a list of your transactions, reports and information.
The best part about the feature you’ve chosen is it lets you to update automatically every day. Not only can they help you know how much you’ve earned however, they can also help you determine when your next payment is due.
Their dashboard also allows you to see the sales tax totals in your business. Additionally, you can export the data to the form of a CSV file if you need it for your process of financial planning and accounting or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the channels you sell through. This means that you don’t have to scramble for your documents whenever you’re when you’re in a pinch. Even if you already have your accounting firm, the feature can help them be more efficient.
Additionally, knowing the figures for your sales tax in advance will allow you to allocate your funds better. You’ll know exactly how much budget you have available for other operational expenses.
But what’s even better is that TaxJar offers tutorials and training, not just for their platform , but also all things that has to do with sales tax. You can check out their guides, webinars, and blog for more info. Additionally, their sales tax calculator can be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they’re sometimes too costly for your business. That’s why for 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 costs $19. They say it’s the most effective plan to help you in filing and reporting. It also includes sales tax reporting, four annual AutoFiles for free, as well as the option of a CSV import. With the starter plan, you will be able to access their AI tax advice.
If you’re a smaller business manager, the plan will be ideal for you. It may not have all the features of TaxJar but it comes with the essentials that you need.
In addition, you can reach their customer support via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for different from the standard features Professional could be the one for you. The price starts at $99 however, it could go up by adding custom features.
How different is it from the starter plan?
In addition to accessing every one of Starter plan’s features, you also get access to their support via phone access to APIs, as well as sophisticated CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you run a large business, you might need to choose the Premium plan instead. It includes all of the features that you require to aid in your tax preparation. Additionally, they permit unlimited import integrations of data API integrationsfor team members as well as AutoFiles.
There is also a team that is devoted in managing your accounts. However, they don’t disclose the price of the Premium plan. is going to cost. Ryan Thompson TaxJar Magento
However, they did say that this plan is tailor-fit for every user. So the costs will vary in line with what you require for your company.
Luckily, you don’t have to gamble your money just to find out if the platform is right for you. If you’re still considering other options, they have a 30-day free trial. It should give you enough time to gauge whether the service is the right choice for you.
Pros and Cons
After we’ve gone over everything you need to be aware of TaxJar let’s take a break. To sum it all up, here are the pros and cons of using TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help save 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 possible to integrate it with other platforms
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to companies that have multiple sales channels and uses plenty of platforms. If this sounds like the way you’re doing, then must try TaxJar.
Not only can it help you track your products and revenue, but it can help you meet your deadlines. This is also an excellent option for accountants as they have tax Advisor program. You can find tips and gain knowledge from their workshops on taxes by using it.
Using TaxJar can help you get more done while keeping on top of each deadline and requirement you have to meet. If you’re in a place with complicated tax laws, this can surely help you wrap your mind around it. Ryan Thompson TaxJar Magento
But if handling taxes is easy If it isn’t, then TaxJar may be an unnecessary investment. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of all of it. If you find the entire procedure simple to follow then you’re better off doing it on your own.
FAQ Ryan Thompson TaxJar Magento
Which areas does TaxJar offer API assistance?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I integrate Shopify into 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 with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transactions are in USdollars. If you’re using another currency, you will need to convert it into USdollars before TaxJar will calculate your tax.