Taxes have always been among the most difficult tasks to complete regardless of whether you’re running your own business or not. Even more so if you do not have any experience in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is packed with things to do. When you’re not able to afford the budget to hire an accountant, doing it on your own could be dangerous. If you miss one detail and you don’t know it, you may have to do it all over again!
Almost everyone wants to skip this step. But since it’s required to be done, we can’t choose not to.
So , what can we do ?
We can simplify our lives by using tools like TaxJar.
This article will take a look at this well-known life-saving device and how it can assist you. While this is an extensive read, you should be able to determine if TaxJar is the tool you require today.
Are you looking to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What is TaxJar? South Dakota Vs Wayfair Means To E-Commerce TaxJar
Founded in 2013, TaxJar is a platform that helps automate your filings, reports, and sales tax calculation. It is a solution for the entire life cycle. Furthermore, you can utilize it across all the sales channels you use to ensure that you are in compliance with sales taxes. It streamlines processes that can take days to complete, and finish within only a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively 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 most important things you’ll need to ensure is your tax-reporting platform is compatible with your sales channel. If you’re selling through multiple channels, you must ensure that everything is in order. The last thing you want is to get a penalty for missing a single minor point.
TaxJar allows you to show your most important metrics in one place. That way, there’s no need to collect information from multiple sources and sort it into one platform. All you need to do is integrate TaxJar, and the platform will take care of the rest.
Other than that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of the platforms they are able to integrate with:
TaxJar lets customers submit their sales tax either manually or via the AutoFile feature. In our review we’ll look at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When it comes time to the filing of income tax returns, the team will instruct you on managing the tax returns. But, it is up for you and your team members to complete the process on time. TaxJar is there to guide you on what you should accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out the forms in a manual manner. With this feature, everything will be automated, from calculating sales taxes through recording, and then processing them. But, it is possible to incur additional costs if the feature is not part of the plan you choose.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting woes. All orders made through your e-commerce channels can be combined into a single dashboard through this platform. From there you and your staff can access everything you need, like the list of transactions, reports, and information.
The greatest benefit of the feature you’ve chosen is it allows you to update automatically every day. Not only will they let you know how much you’ve collected and how much you’ve earned, but they also let you track when your following payments are due.
Their dashboard also allows users to view in detail the total sales tax for your business. It is also possible to export the information as a CSV file if you need it in your accounting and financial planning processes or if your team needs it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to search for your documents whenever you’re in a pinch. Even when you already have your accountant, this feature can make them more efficient.
Moreover, knowing the estimates for your sales tax in advance will help you plan your funds more effectively. You’ll know exactly how much budget you have to cover other operating expenses.
The best part is that TaxJar offers tutorials and training, not just for their platform but for anything that has to do with sales tax. You can look through their webinars, guides or blog posts for additional information. In addition, their sales tax calculator can be useful if you’re planning to take on the entire task 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 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. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. The company claims that it’s the best plan to help you with filing requirements or reporting. It comes with sales tax reporting, 4 autofiles for free each year, and the option of a CSV import. Even with the starter plan, you will be able to access their AI tax tips.
If you’re a small company manager, the plan should be perfect for you. It may not offer all the features offered by TaxJar but it comes with 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 tools.
If you’re looking to get different from the basic features Professional might be the right one for you. The price starts at $99 but you can increase it if you add custom features.
How different is it from the basic plan?
Apart from having access to all of the Starter plan’s features, you also get access to their support 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 business, you might need to opt for an upgrade instead. It includes all of the features that you require to make your tax filing easier. In addition, they offer unlimited data import integrations as well as API integrations, team users as well as AutoFiles.
They also have a staff who are devoted in managing your accounts. But, they don’t divulge the amount that the Premium plan is going to cost. South Dakota Vs Wayfair Means To E-Commerce TaxJar
But they did state that this plan is customized to each 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 risk your money to find out if the platform is the right one for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. This should give you enough time to gauge if the platform is a good fit for you.
Pros and Pros and
After we’ve gone over everything you need to be aware of TaxJar let’s take a breather. To summarize we’ll go over the pros and cons of using TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers an online sales tax calculator.
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms.
- It allows you to monitor multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable to USA customers
- Owners and accountants should review local laws
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to businesses with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then you must try TaxJar.
Not only will it help you track your revenue and products however, it will assist you in meeting the deadlines you set. This is also an excellent opportunity for accountants since they offer the Tax Advisor program. You can find tips and learn from their sessions regarding taxes via it.
Using TaxJar will help you reduce time and keep on top of each deadline and requirement you have to fulfill. If you’re living in a region with a lot of tax laws, this will certainly help you to get your mind around it. South Dakota Vs Wayfair Means To E-Commerce TaxJar
If handling taxes is easy and straightforward, then TaxJar may be an unnecessary expense. 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 and you’re comfortable with it, you may be better in doing it all on your own.
FAQ South Dakota Vs Wayfair Means To E-Commerce TaxJar
What areas does TaxJar offer API assistance?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with 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 using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions are in US$. If you’re using a different currency, you’ll have to convert it into USUSD prior to when TaxJar will calculate the tax.