Taxes have always been one of the hardest things to do, whether you’re running a business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related tasks can be overwhelming, particularly when you’re packed with things to do. When you’re not able to afford the funds to hire an accountant, doing it on your own could be risky. If you make a mistake and you don’t know it, you may have to do it all over again!
Almost everyone wants to avoid this step. But since it’s required, we have no choice.
So what is the best way to deal with it?
We can make life easier by using tools like TaxJar.
We’ll look at this popular life-saving tool and explain how it can benefit you. While this is a long read, you should be able to gauge whether TaxJar is exactly what you need today.
Do you prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar Shipstation TaxJar
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize it across all of your channels of sales to make sure you’re in compliance with sales taxes. It makes the process simpler that could require days to complete and can be completed in a matter of only a few minutes.
TaxJar is used in various industries like food and beverage companies, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is extensively used by owners of online businesses to make their business more organized and straightforward. Let’s take a look at their features and services.
Services and features
One of the most important things you’ll want to check you have a tax accounting platform perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you need to maintain everything in line. The most important thing is not to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your most important data in one location. So, there’s no need to collect data in multiple channels and then organize it on one platform. All you need to do is integrate TaxJar and the platform will handle the rest.
In addition, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms they can integrate with:
TaxJar lets customers submit their sales tax either manually or via their AutoFile feature. For our review we’ll take a look into both.
If you choose to do it manually, TaxJar will allow you to connect those sales tools. When the time is right for filing income tax returns, the team will instruct you on how to manage the tax returns. However, it will be up for you and your team members to finish the tax returns within the timeframe. TaxJar is there to help you understand what you need to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit the forms in a manual manner. Through this feature, everything will be automated from calculating sales taxes to recording and processing it. However, there might be additional charges if they are not included in the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to assist you with your accounting problems. 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, such as an inventory of your transactions, reports, and the data.
The greatest benefit of the feature you’ve chosen is it lets you to update automatically every day. Not only can they help to know the amount you’ve collected, but they also help you keep track of when the next payment is due.
The dashboard allows you to fully view the sales tax totals within your company. Additionally, you can export the information in CSV format. CSV file if you need it for your financial planning and accounting processes or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all the channels you sell through. That means you won’t have to scramble for your documents whenever you’re in a pinch. Even if you already have your accounting firm, the feature will make them more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will help you plan your funds more effectively. You’ll know exactly how much budget you have for other operating expenses.
But what’s even better is that TaxJar provides training and tutorials not only on their platform, but all things related to sales tax. You can check out their webinars, guides and blog for more information. Apart from that the sales tax calculator can be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Certain platforms have amazing features, but they can be too costly for your business. For this reason we’ll take a look at TaxJar’s pricing structures and what each of these choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. They claim that it’s the most effective plan if you need help with filing requirements or reporting. It also includes the tax on sales, four autofiles for free each year, and the option of a CSV import. Even with the basic plan, you will be able to access their AI tax tips.
If you’re a small business owner, this plan could be ideal for you. It may not have all the features offered by TaxJar but it comes with the basic features you require.
You can also contact their support team with their email support chart. You’ll also have access to their integration capabilities.
If you’re looking for different from the basic features and options, then the Professional plan may be the best option for you. It’s priced at $99 but you can increase it if you add custom features.
So how different is it from the starter plan?
In addition to having access to every one of Starter plan’s features, you also get access to their support via phone Access to APIs, phone support, and sophisticated CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large company, you may need to choose an upgrade instead. It comes with all the features that you require to make your tax filing easier. In addition, they offer unlimited data import integrations API integrations, team members and AutoFiles.
There is also a team who are devoted to managing your account. However, they don’t disclose how much the Premium plan will cost you. Shipstation TaxJar
But they did state that the plan is custom-made to each user. Therefore, the cost will differ according to what you require for your business.
It’s a good thing that you don’t have to bet your life on it to find out if the platform is right for you. If you’re still considering other options, they have 30 days of free trial. This should give you enough time to determine whether the software is an excellent fit for you.
Pros and Cons
We’ve covered everything you should know about TaxJar let’s take a break. To sum it all up we’ll go over the advantages and disadvantages of making use of TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers 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 possible to integrate it with other platforms.
- Allows you to track multiple sales channels
- Limits for AutoFile are 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 check local legislation
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies that have many sales channels and utilizes numerous platforms. If this sounds like the way you’re doing, then must try TaxJar.
Not only will it aid in tracking the sales and profits of your business, but it can help you meet the deadlines you set. It is also a great option for accountants as they have tax Advisor program. There are tips to follow and get knowledge from their seminars regarding taxes via it.
Utilizing TaxJar can help you reduce time and keep the track of each 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 it. Shipstation TaxJar
But if handling your taxes is simple and straightforward, then TaxJar may be an unnecessary expense. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to keep track of everything. If you find the entire procedure simple to follow then you’re better in doing it all by yourself.
FAQ Shipstation TaxJar
Which areas does TaxJar provide API support?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I integrate Shopify with TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transactions are in USdollars. If you’re using a different currency, you will need to convert it into USUSD before TaxJar can calculate your tax.