Taxes are always one of the hardest things to do regardless of whether you run your own business or not. Particularly if you don’t have a background in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is packed with things to do. In the event that you do not have the funds to engage an accountant doing it on yourself can be dangerous. If you overlook one thing and you don’t know it, you may have to do it all over again!
Nearly everyone would prefer to avoid this step. But since it’s required to be done, we can’t choose not to.
So what is the best way to deal with it?
We can make our lives easier with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and explain how it can help you. Although this is quite an extensive read, you should be able to assess whether TaxJar is exactly what you need in the present.
Do you prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What is TaxJar? Shopify TaxJar App
The company was founded in 2013 TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. In addition, you can apply it across all your sales channels to make sure you’re in compliance with sales tax requirements. It streamlines processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar has been utilized in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is extensively used by business owners who run online businesses to keep everything organized and straightforward. Let’s explore their features and services.
Services and features
One of the first things you’ll want to check you have a tax accounting software seamlessly works well in conjunction with the sales channels you use. If you have multiple sales channels, you must maintain everything in line. The most important thing is not to be penalized for not paying attention to a minor thing.
TaxJar lets you display your key metrics in one spot. This means that there is no requirement to collect data in multiple channels and organize it into a single platform. All you have to do is to integrate TaxJar then the system will handle the rest.
In addition, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar lets customers submit their sales tax manually or through the AutoFile feature. In this review, we’ll take a look at both.
If you choose to do it manually, TaxJar will allow you to connect all of those sales tools. When it comes time to filing tax returns for income TaxJar will train you on managing them. But, it is up for you and your team to finish the tax returns on time. TaxJar is only there to guide you on what you have to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit the forms in a manual manner. With this feature, everything is automated, from calculating taxes on sales in order to record and process them. But, it is possible to incur additional costs if the feature is not part of the plan you chose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to assist you with your accounting problems. Your orders from your e-commerce channels can be combined into a single dashboard via this platform. From there you and your staff will have access to all the information you need, such as the list of transactions, reports, as well as data.
The greatest benefit of this feature is that it lets you to update automatically every day. Not only will they let you know how much you’ve earned and how much you’ve earned, but they also let you track when your following payment is due.
Their dashboard also allows you to see the total sales tax in your business. You can also export the data as 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 to run centralized reports.
Streamlining and Training
TaxJar helps organize and keep on top of all the sales avenues you use. It means you don’t need to search for your documents when you need them in a pinch. Even when you already have your accounting firm, the feature can make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay 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 provides training and tutorials not only for their platform , but also for anything that has to do with sales tax. Check out their webinars, guides, and blog for more information. Apart from that the sales tax calculator is useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to set your budget. Some platforms offer superb features, but they can be too costly for the business you run. This is why in this section we’ll take a look at TaxJar’s pricing tiers and what each of those plans can offer. Presently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. They claim that it’s the best plan if you need help in filing and reporting. It also includes sales tax reporting, four free yearly AutoFiles, and the option of a CSV import. Even with the basic plan, you have access to their AI tax advice.
If you’re a small-scale company owner, this plan will be perfect for you. It might not include all the features of TaxJar however, it does include all the basics you require.
You can also contact their customer support via their email support chart. You’ll also have access to their integration capabilities.
If you’re looking to get that is more than the basic features Professional might be the right one for you. The price starts at $99 however, it could go up by adding custom features.
What is the difference from the original plan?
In addition to accessing all of the Starter plan’s options, you also have access to their support via phone, API access, and advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you own a huge company, you may need to opt for the Premium plan instead. It has all of the features that you require to help with your taxes. Additionally, they permit unlimited data import integrations as well as Integrations with APIs, teams of members, and AutoFiles.
There is also a team that is devoted for managing the account. But, they don’t divulge the amount that the Premium plan will cost you. Shopify TaxJar App
However, they did say that the plan is custom-made for every user. Therefore, the cost will differ in line with what you require for your business.
It’s a good thing that you don’t have to gamble your money just to find out if the platform is the right one for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. This should be enough time to see whether the software is a good fit for you.
Pros and Cons
Now that we’ve covered all you must know about TaxJar let’s take a breather. To summarize Here are the pros and cons of using TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms.
- Allows you to track multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only applicable for USA customers.
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to businesses with numerous sales channels, and that utilizes plenty of platforms. If that sounds like what you do, then you ought to try this.
Not only will it assist you in keeping track of your products and revenue however, it will assist you in meeting the deadlines you set. It’s also an excellent option for accountants as they offer the Tax Advisor program. You can find tips and get knowledge from their seminars about taxes through it.
The use of TaxJar can allow you to get more done while keeping track of every deadline and obligation you have to fulfill. If you’re living in a region with a lot of tax laws, this can surely help you wrap your head around the subject. Shopify TaxJar App
However, if managing your taxes is straightforward, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to track everything. In addition, if you find the whole process easy to do, you might be better in doing it all by yourself.
FAQ Shopify TaxJar App
What are the areas in which TaxJar provide API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can connect your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. The transaction amounts are n US$. If you’re using a different currency, you will need to convert it to USdollars prior to when TaxJar can calculate your tax.