Taxes have always been among the hardest things to do regardless of whether you run your own business or not. More so if you don’t have any experience in finance or accounting. Tax-related tasks aren’t easy, particularly when you’re packed with things to do. If you don’t have enough money to hire an accountant, performing the task on your own could be risky. If you miss one detail, you might have to redo things again!
Nearly everyone would prefer to avoid this step. But since it’s required and mandatory, there’s no other choice.
What can we do about it?
We can always make our lives easier with tools such as TaxJar.
This article will take a look at this life-saving device and how it can assist you. Even though this is an extensive read but you’ll be able to assess whether TaxJar is what you need today.
Prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, let’s get right into it.
What exactly is TaxJar? Should Tax Havens Be Illegal
In 2013, TaxJar was established. TaxJar is an application that automatizes your reporting, filings and sales tax calculations. It is a solution for your entire sales tax life cycle. In addition, you can apply it in all of your sales channels to ensure compliance with sales taxes. It streamlines processes that 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 and even medical establishments.
How can it help you?
TaxJar is extensively used by business owners who run online businesses to keep everything neat and simple. Let’s explore their features and services.
Services and features
One of the most important things you’ll need to make sure is your tax-reporting software perfectly integrates in conjunction with the sales channels you use. If you’re selling through multiple channels, you must ensure that everything is in order. The most important thing is not to face a penalty due to overlooking just one minor detail.
TaxJar lets you display your key metrics in one place. That way, there’s no need to collect data in multiple channels and then organize it on one platform. All you have to do is to integrate 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 highlighting the platforms that they can connect with:
TaxJar allows clients to file their sales taxes either manually or via their AutoFile feature. For this review, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect those sales tools. Once the time comes for filing income tax returns, the team will instruct you on how to handle them. But, it is up for you and your staff to complete everything on time. TaxJar will only guide you on what you need to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out any forms manually. With this feature, everything will be automated from calculating sales taxes in order to record and process it. There could be additional charges if they are you do not include this feature in the plan you choose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to ease your accounting problems. Your orders from your e-commerce channels can be put together into a single dashboard through this platform. From there you and your team will have access to all the information you need, like an inventory of your transactions, reports, as well as the data.
The best part about this option is the fact that it lets you to automatically update every day. They not only let to know the amount you’ve collected and how much you’ve earned, but they also let you keep track of when the next payments are due.
Their dashboard can also allow you to see the sales tax totals for your business. You can also export the data to the form of a CSV file if you need it in your process of financial planning and accounting or if you require it for central reporting.
Streamlining and Training
TaxJar helps you organize and keep track of all of your sales channels. It means you don’t need to search for your documents whenever you’re in the event of a need. Even when you already have your accountant, this function can make them more efficient.
Additionally, knowing the figures for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll know better how much budget you have available for other operational expenses.
What’s more is that TaxJar offers training and tutorials and tutorials, not just for their platform , but also for anything connected to sales tax. You can check out their webinars, guides, and blog for more details. In addition their sales tax calculator can be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb capabilities, but they’re often too costly for the business you run. For this reason we’ll take a look at TaxJar’s pricing levels and what each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They claim that it’s the most suitable plan for you to help you in filing and reporting. It includes sales tax reporting, four free yearly AutoFiles, and the option of a CSV import. Even with the starter plan, you will be able to access their AI tax recommendations.
If you’re a small-scale company manager, the plan could be ideal for you. It may not offer all the features of TaxJar, but it has all the basics you require.
In addition, you can reach the support team via their support chart for email. Additionally, you’ll have access to their integration features.
If you’re looking for that is more than the basic features Professional could be the one for you. It starts at $99, however, it could go up when you add additional features.
So how different is it from the original plan?
Apart from having access to every one of Starter plan’s features, you also have the support of their customer service via phone Access to APIs, phone support, and advanced CSV import. You can also have 12 free AutoFiles each year.
If you have a massive business, you might need to go for an upgrade instead. It comes with all the features that you require to make your tax filing easier. Moreover, they allow unlimited data import integrations, API integrations, team users, and AutoFiles.
There is also a team who are devoted for managing the account. But, they don’t divulge the amount that the Premium plan costs you. Should Tax Havens Be Illegal
However, they did say that this plan is customized for every user. The cost of the plan will be different according to what you require for your business.
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 considering different options, they offer a 30-day free trial. This should be enough time to determine if the platform is a good fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a breather. To summarize, here are the pros and cons of using TaxJar for your company.
- 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
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms.
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only valid for USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything clearly laid down, TaxJar is an excellent platform for companies that have many sales channels and utilizes many platforms. If that’s what you’re doing, then should try this.
Not only will it help you track the sales and profits of your business, but it can assist you in meeting your deadlines. It’s also an excellent opportunity for accountants since they provide tax Advisor program. You can get tips and gain knowledge from their workshops regarding taxes via it.
Using TaxJar will help you reduce time and keep on top of each deadline or requirement you need to fulfill. If you’re in a place with complicated tax regulations, this will definitely help you get your head around the subject. Should Tax Havens Be Illegal
However, if managing your taxes is simple If it isn’t, then TaxJar may be an unnecessary expense. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the whole procedure easy to complete then you’re better in doing it all on your own.
FAQ Should Tax Havens Be Illegal
What areas does TaxJar provide API support?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transaction amounts are n US$. If you’re using another currency, you’ll have to convert it to USdollars before TaxJar can calculate your tax.