Taxes have always been one of the most difficult things to handle, whether you’re running a business or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is filled with tasks to complete. If you don’t have the budget to engage an accountant doing it on your own can be risky. If you overlook one thing it could mean you need to repeat the process!
Almost everyone wants to skipping 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 simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can assist you. Even though this is an extensive read it is possible to gauge whether TaxJar is the tool you require today.
Do you prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
But for those who prefer to read, let’s dive right in.
What is TaxJar? Shopify TaxJar
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. It’s a solution for your entire sales tax life cycle. Furthermore, you can utilize it across all the sales channels you use to ensure that you are in compliance with sales tax requirements. It makes the process simpler that could take days to complete and finish within only a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is widely used by business owners who run online businesses to keep everything organized and straightforward. Let’s explore the features and services offered by TaxJar.
Features and services
One of the most important things you’ll need to make sure is that your accounting tax software seamlessly works well along with sales funnels. If you’re using multiple sales channels, it is essential to maintain everything in line. The last thing you want is to get a penalty for missing a single minor point.
TaxJar allows you to display your most important data in one location. This means that there is no need to gather data in multiple channels and then organize it on one platform. All you need to do is connect TaxJar then the system will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms they are able to integrate with:
TaxJar allows customers to submit their sales tax either manually or via the AutoFile feature. For the purpose of this article, we’ll dig at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When the time is right for filing tax returns for income TaxJar will train you on managing these. It is up to you and your team members to complete the process within the timeframe. TaxJar is there to provide guidance on what you have to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit any forms manually. Through this feature, everything will be automated, from calculating taxes on sales to recording and processing it. There could be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to ease your accounting woes. All orders made through your e-commerce channels can be put together into one dashboard using this platform. From there, you and your team will have access to all the information you require, including a list of your transactions, reports and data.
The most appealing aspect of this feature is that it lets you to update your account automatically each day. They not only let you keep track of how much you’ve earned, but they also help you track when your following payments are due.
Their dashboard can also allow you to fully view the sales tax totals within your company. You can also export the information to the form of a CSV file in case you require it to aid in process of financial planning and accounting or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all your sales channels. That means you won’t have to search for your documents when you’re in a pinch. Even when you already have your accountant, this function will aid them in being 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 be aware of the budget you have for other operational expenses.
But what’s even better is that TaxJar offers tutorials and training not only for their platform , but also everything that has to do with sales tax. You can check out their webinars, guides and blog for more details. Additionally their sales tax calculator should be helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Some platforms provide amazing features, but they’re sometimes too costly for your business. This is why in this section we’ll examine TaxJar’s pricing levels and the features that each of these plans can offer. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They say it’s the most suitable plan for you to help you with filing requirements or reporting. It includes sales tax reporting, 4 autofiles for free each year, and a CSV import. With the starter plan, you can access their AI tax tips.
If you’re a small business manager, the plan should be ideal for you. It may not have all of TaxJar’s features but it comes with the essentials that you need.
You can also contact the support team via their email support chart. You’ll also be able to use their integration features.
If you’re looking for something that is more than the basic features and options, then the Professional plan may be the best option for you. The price starts at $99 but you can increase it when you add additional features.
What is the difference from the basic plan?
Apart from having access to every one of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you own a huge enterprise, you may want to go for premium plans instead. It includes all of the features needed to help with your taxes. Additionally, they permit unlimited data import integrations, API integrations, team members, and AutoFiles.
They also have a team dedicated for managing the account. However, they don’t disclose how much the Premium plan will cost you. Shopify TaxJar
But they did state that this plan is tailor-fit for each user. The cost of the plan will be different depending on what you need to run your business.
Luckily, you don’t have to bet your life on it to determine if this service is right for you. If you’re still looking into different options, they offer 30 days of free trial. This should give you enough time to gauge if the platform is the right choice for you.
Pros and Cons
Now that we’ve covered all you must be aware of TaxJar Let’s relax. To summarize we’ll go over the advantages and disadvantages of using TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It can be integrated 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 to USA customers.
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid out TaxJar provides a fantastic platform to businesses with multiple sales channels and uses numerous platforms. If that’s what you do, then you should try this.
Not only will it aid in tracking your revenue and products, but it can assist you in meeting the deadlines you set. It’s also an excellent option for accountants as they offer tax Advisor program. There are tips to follow and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar can allow you to save more time while keeping on top of each deadline and obligation you have to fulfill. If you’re living in a region with a lot of tax regulations, this will definitely help you get your head around it. Shopify TaxJar
If handling your taxes is simple If it isn’t, then TaxJar might not be a good expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of everything. Moreover, if you’re finding the entire procedure easy to complete then you’re better in doing it all on your own.
FAQ Shopify TaxJar
Which areas does TaxJar offer API assistance?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can link your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transactions are in USdollars. If you’re using another currency, you’ll need to convert it into USdollars before TaxJar can calculate your tax.