Taxes are always one of the hardest things to do regardless of whether you’re running your own business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related issues 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, doing it on your own can be risky. If you miss one detail and you don’t know it, you may have to redo things again!
Nearly everyone would prefer to skip this step. However, since it’s mandatory and mandatory, there’s no other choice.
What is the best way to deal with it?
We can always simplify our lives by using tools like TaxJar.
We’ll look at this popular life-saving tool and explain how it can help you. Even though this is an extensive read it is possible to gauge whether TaxJar is exactly what you need today.
Do you prefer watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
For those who like to read, then we’ll dive right into.
What exactly is TaxJar? Setting Up TaxJar On Shopify For Dropshipping
The company was founded in 2013 TaxJar is an application that automatizes your reporting, filings and sales tax calculations. It’s a solution for the entire life cycle. Additionally, you can use it in all of the sales channels you use to ensure that you are in compliance with your sales taxes. It makes the process simpler that could require days to complete and is completed in just a few only a few minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is used extensively by owners of online businesses to make their business more organized and straightforward. Let’s look into the features and services offered by TaxJar.
Services and features
One of the first things you’ll want to check is your tax-reporting platform seamlessly works well in conjunction with the sales channels you use. If you’re using multiple sales channels, you must ensure that everything is in order. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to display your critical 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, and the platform will handle the rest.
Other than that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of platforms that they can connect with:
TaxJar allows clients to make sales tax filings either manually or via TaxJar’s AutoFile feature. In this review, we’ll dig into both.
If you opt to go it alone, TaxJar will allow you to connect all of your sales platforms. When it comes time to filing income tax returns The team will guide you on how to handle them. But, it is up for you and your team members to complete the process on time. TaxJar is there to provide guidance on what you need to do , but not to handle 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. With this feature, everything will be automated, from calculating sales taxes to recording and processing them. However, there might be additional costs if the feature is 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 woes. Your orders from your e-commerce channels can be combined into a single dashboard through this platform. From there you and your staff will have access to all the information you need, like a list of your transactions, reports, and the data.
The best part about this feature is that it allows you to automatically update every day. Not only will they let you keep track of how much you’ve earned however, they can also help you determine when your next payment is due.
Their dashboard also allows you to fully view the sales tax totals within your company. You can also export your data as CSV format. CSV file if you need it for your accounting and financial planning processes or if your team needs it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping the track of all your sales channels. That means you won’t have to hunt for your paperwork when you’re in a pinch. Even when you already have your accountant, this function can aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your funds better. You’ll know better how much budget you have for other operating expenses.
The best part is that TaxJar provides training and tutorials not only for their platform , but also everything related to sales tax. You can check out their webinars, guides, and blog for more details. In addition, their sales tax calculator can be beneficial when 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. Some platforms provide amazing features, but they’re sometimes too costly for your business. This is why in this section we’ll take a look at TaxJar’s pricing levels and the features that each of these choices can provide you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. They say it’s the best plan to help you with filing requirements and reporting. It comes with sales tax reporting, four autofiles for free each year, and an CSV import. Even with the basic plan, you will be able to access their AI tax tips.
If you’re a smaller company proprietor, then this program should be perfect for you. It might not include all of TaxJar’s features, but it has the essentials that you need.
In addition, you can reach their customer support via their email support chart. You’ll also be able to use their integration features.
If you’re looking for a bit more than just the standard features and options, then the Professional plan might be the right one for you. It starts at $99, however, it could go up when you add additional features.
What is the difference from the original plan?
In addition to having access to all of the Starter plan’s features, you also have the support of their customer service via phone Access to APIs, phone support, and the ability to do advanced CSV import. You can also have 12 free AutoFiles each year.
If you own a huge business, you might need to go for an upgrade instead. It includes all of the features that you require to aid in your tax preparation. In addition, they offer unlimited import integrations of data Integrations with APIs, teams of members as well as AutoFiles.
They also have a staff who are devoted in managing your accounts. However, they don’t disclose how much the Premium plan will cost you. Setting Up TaxJar On Shopify For Dropshipping
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.
Fortunately, you don’t need to gamble your money just to determine if this service is the right one for you. If you’re still looking into other options, they have 30 days of free trial. It should give you enough time to determine if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to be aware of TaxJar let’s take a breather. To sum it all up Here are the advantages and disadvantages of using TaxJar for your business.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides Taxes on sales online calculator
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms.
- You can track several 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 applicable to USA customers
- Owners and accountants should check local legislation
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies that have many sales channels and utilizes many platforms. If that sounds like what you do, then you must try TaxJar.
Not only will it aid in tracking the sales and profits of your business It can help you meet your deadlines. This is also an excellent platform for an accountant since they offer tax Advisor program. You can find tips and learn from their sessions on taxes by using it.
Using TaxJar can allow you to get more done while keeping track of every deadline and requirement you have to fulfill. If you live in a place with complicated tax laws, this can certainly help you to get your head around the subject. Setting Up TaxJar On Shopify For Dropshipping
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. If you’re finding the entire process easy to do and you’re comfortable with it, you may be better off doing it on your own.
FAQ Setting Up TaxJar On Shopify For Dropshipping
What areas does TaxJar provide API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with TaxJar?
Yes. You can connect your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transaction amounts are n USdollars. If you’re using a different currency, you will need to convert it into US$ prior to when TaxJar determines the tax.