Taxes have always been among the most difficult things to handle, whether you’re running a business or not. Even more so if you do not have any experience in accounting or finance. Tax-related issues can be overwhelming, particularly when your whole day is filled with tasks to complete. If you don’t have the funds to hire an accountant, performing the task on yourself can be risky. If you overlook one thing, you might have to do it all over again!
Nearly everyone would prefer to skip this step. However, since it’s mandatory 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 by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and how it can benefit you. Even though this is an extensive read, you should be able to assess whether TaxJar is exactly what you need today.
Are you looking to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
If you prefer to read, let’s dive right in.
What exactly is TaxJar? Source Vs Destination TaxJar
The company was founded in 2013 TaxJar is a platform that helps automate your reports, filings, and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. In addition, you can apply it in all of your channels of sales to make sure you’re in compliance with your sales taxes. It streamlines processes that require days to complete and can be completed in a matter of minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by owners of online businesses to ensure that everything is simple and organized. Let’s explore the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to ensure is your tax-reporting system perfectly integrates with your sales channel. If you’re using multiple sales channels, you need to ensure that everything is in order. The most important thing is not to be penalized for overlooking just one minor detail.
TaxJar allows you to show your critical metrics in one spot. That way, there’s no need to collect data in multiple channels and organize it into a single platform. All you have to do is integrate TaxJar and the platform will handle all the rest.
Other than that, TaxJar also integrates with other platforms that help with payments. Here’s a list of platforms that they can connect with:
TaxJar allows clients to submit their sales tax by hand or using TaxJar’s AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When it comes time to filing tax returns for income, the team will instruct you on managing these. But, it is up to you and your team to finish the tax returns on time. TaxJar will only provide guidance on what you need to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out the forms in a manual manner. This feature will ensure that everything will be automated from calculating sales taxes in order to record and process it. However, there might be additional costs if the feature is you do not include this feature in the plan you select.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to ease your accounting woes. Your orders from your e-commerce channels can be put together into a single dashboard through this platform. Once you’re on the platform you and your staff will have access to all the information you require, including a list of your transactions, reports, as well as the data.
The most appealing aspect of the feature you’ve chosen is they allow you to automatically update every day. Not only can they help you keep track of how much you’ve collected and how much you’ve earned, but they also let you determine when your next payment is due.
Their dashboard can also allow users to view in detail the overall sales taxes in your business. Additionally, you can export the data as a CSV file if you need it in your process of financial planning and accounting or if your team needs it for central reporting.
Training and Streamlining
TaxJar helps you organize and keep on top of all your sales channels. That means you won’t have to scramble for your documents when you need them in a pinch. Even if you already have your accounting firm, the feature will help them be 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 to cover other operating costs.
The best part is that TaxJar offers tutorials and training, not just for their platform but for anything related to sales tax. You can look through their webinars, guides and blog for more info. Apart from that the sales tax calculator can be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to set 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 tiers and the features that each of these choices can provide you. At present, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. The company claims that it’s the best plan to help you with filing requirements or reporting. It includes taxes on sales and sales as well as 4 free yearly AutoFiles, and an CSV import. Even with the basic plan, you have access to their AI tax recommendations.
If you’re a small business manager, the plan should be ideal for you. It might not include all the features offered by TaxJar but it comes with the basic features you require.
Additionally, you can contact their customer support via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for something that is more than the basic features, then the Professional plan could be the one for you. The price starts at $99 but it can go higher when you add additional features.
How different is it from the original plan?
In addition to having access to each of Starter plan’s features, you also get access to the support of their customer service via phone access to APIs, as well as sophisticated CSV import. They also allow you to get 12 AutoFiles for free each year.
If you own a huge company, you may need to choose the Premium plan instead. It includes all of the features you need to help with your taxes. Moreover, they allow unlimited import integrations of data API integrations, team members and AutoFiles.
There is also a team that is devoted to managing your account. They don’t reveal the price of the Premium plan. costs you. Source Vs Destination TaxJar
But they did state that the plan is custom-made to each user. Therefore, the cost will differ depending on what you need 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 for you. If you’re still looking into different options, they offer the opportunity to try a free trial for 30 days. This should be enough time to see whether the software is the right choice for you.
Pros and Pros and
After we’ve gone over everything you must be aware of TaxJar Let’s relax. To sum it all up Here are the advantages and disadvantages of making use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers an online sales tax calculator.
- Support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms.
- It allows you to monitor multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out TaxJar can be a great platform companies with multiple sales channels and uses numerous platforms. If that sounds like what you do, then you must try TaxJar.
Not only can it aid in tracking your products and revenue, but it can assist you in meeting the deadlines you set. It is also a great option for accountants as they provide the Tax Advisor program. You can get tips and learn from their sessions on taxes by using it.
Utilizing TaxJar can allow you to get more done while keeping track of every deadline and requirement you have to fulfill. If you live in an area with complex tax laws, this can definitely help you get your mind around it. Source Vs Destination TaxJar
But if handling your taxes is simple and straightforward, then TaxJar might not be a good investment. If you have only one or two sales channels, TaxJar won’t be needed to track everything. In addition, if you’re finding the entire process easy to do and you’re comfortable with it, you may be better in doing it all on your own.
FAQ Source Vs Destination TaxJar
Which areas does TaxJar offer API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can sync your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transactions’ amounts are in USdollars. If you’re using a different currency, you will need to convert it to US$ before TaxJar determines your tax.