Taxes have always been among the hardest things to do 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 can be overwhelming, especially when you’re packed with things to do. If you don’t have enough money to employ an accountant, making it your own can be risky. If you miss one detail, you might need to repeat the process!
Most people want to avoid this step. However, since it’s mandatory to be done, we can’t choose not to.
So , what can we do about it?
We can make life easier with tools such as TaxJar.
We’ll look at this well-known life-saving tool and how it can assist you. Even though this is lengthy, you should be able to gauge whether TaxJar is exactly what you need right now.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, then we’ll dive right into.
What is TaxJar Setting Up Shopify With TaxJar For Dropshipping
The company was founded in 2013 TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. It’s a solution for your entire sales tax life cycle. Furthermore, you can utilize it in all of your channels of sales to ensure compliance with sales taxes. It simplifies the processes that require days to complete and finish within minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is widely used by business owners who run online businesses to ensure that everything is neat and simple. Let’s explore the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to make sure is that your accounting tax software perfectly integrates along with sales funnels. If you have multiple sales channels, it is essential to ensure that everything is in order. The final thing you would like is to be penalized for missing a single minor point.
TaxJar lets you display your most important metrics in one place. This means that there is no need to gather data from different channels and then organize it on a single platform. All you have to do is to integrate TaxJar, then the system will handle the rest.
Apart from that, TaxJar also integrates with other platforms that help with payment processing. Here’s a list of platforms they are able to integrate with:
TaxJar lets customers submit their sales tax by hand or using the AutoFile feature. For the purpose of this article, we’ll look at both.
If you decide to do it manually, TaxJar will allow you to connect the sales channels you use. Once the time comes for filing tax returns for income, the team will instruct you on how to manage them. It is up for you and your staff to complete the process within the timeframe. TaxJar will only guide you on what you need to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you won’t need to fill out all forms by hand. Through this feature, everything will be automated, from calculating sales tax through recording, and then processing it. But, it is possible to incur additional charges if they are not included in the plan you select.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to ease your accounting woes. The orders you place through your online channels can be combined into a single dashboard via this platform. Once you’re on the platform you and your staff will have access to everything you need, like the list of transactions, reports and data.
The greatest benefit of this option is the fact that it lets you to update automatically every day. Not only will they let to know the amount you’ve earned, but they also help you track when your following payments are due.
Their dashboard also allows you to see the sales tax totals for your business. Additionally, you can export your data in the form of a CSV file, if you want to use it to aid in financial planning and accounting processes or if your team requires it for centralized reporting.
Training and Streamlining
TaxJar helps organize and keep track of all of the channels you sell through. That means you won’t have to scramble for your documents when you need them in a pinch. Even even if you already have an accountant, this function will aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time can help you allocate your funds more effectively. You’ll know better how much budget you have available for other operational costs.
But what’s even better is that TaxJar offers tutorials and training not only for their platform but all things that has to do with sales tax. You can check out their webinars, guides or blog posts for additional details. In addition the sales tax calculator is helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms provide amazing capabilities, but they’re often too expensive for businesses. For this reason we’ll take a look at TaxJar’s pricing tiers and what each of these options can offer you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. They say it’s the most effective plan if you need help in filing and reporting. It also includes the tax on sales, 4 annual AutoFiles for free, as well as a CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale business proprietor, then this program could be perfect for you. It may not have all the features of TaxJar, but it has the basic features you require.
You can also contact the support team via their email support chart. Additionally, you’ll have access to their integration capabilities.
If you’re looking to get that is more than the basics and options, then the Professional plan may be the best option for you. The price starts at $99 but it can go higher if you add custom features.
How different is it from the original plan?
Apart from having access to all of the Starter plan’s features, you also have the support of their customer service via phone, API access, and the ability to do advanced CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive business, you might need to opt for an upgrade instead. It has all of the features that you require to help with your taxes. Moreover, they allow unlimited data import integrations, API integrationsfor team users and AutoFiles.
They also have a staff who are devoted to managing your account. They don’t reveal how much the Premium plan costs you. Setting Up Shopify With TaxJar For Dropshipping
However, they did mention that the plan is custom-made to each user. The cost of the plan will be different according to what you require for your company.
It’s a good thing that you don’t have to risk your money to find out if the platform is for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. This should give you enough time to gauge whether the service is an excellent fit for you.
Pros and Pros and
After we’ve gone over everything you need to know about TaxJar let’s take a break. To summarize Here are the advantages and disadvantages of making use of TaxJar to run your business.
- There is the Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers Taxes on sales online calculator.
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- 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 be able to access the API feature.
- Only valid for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies with many sales channels and utilizes numerous platforms. If that sounds like what you’re doing, then you should try this.
It’s not just a way to help you track the sales and profits of your business It can assist you in meeting the deadlines you set. It is also a great opportunity for accountants since they offer tax Advisor program. You can get tips and get knowledge from their seminars regarding taxes via it.
Utilizing TaxJar will help you reduce time and keep on top of each deadline and requirement you have to meet. If you’re living in a place with complicated tax laws, this will certainly help you to get your mind around it. Setting Up Shopify With TaxJar For Dropshipping
If handling taxes is easy, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track all of it. If you’re finding the entire procedure simple to follow and you’re comfortable with it, you may be better to do it on your own.
FAQ Setting Up Shopify With TaxJar For Dropshipping
What are the areas in which TaxJar offer API support?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transaction amounts are n US$. If you’re using a different currency, you will need to convert it to USUSD before TaxJar determines the tax.