Taxes have always been one of the most difficult things to handle, whether you’re running your own business or not. More so if you don’t have a degree in finance or accounting. Tax-related issues can be overwhelming, particularly when you’re packed with things to do. In the event that you do not have the budget to employ an accountant, performing the task 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 avoid this step. But , as it’s a requirement, we have no choice.
What is the best way to deal with it?
We can always make life easier with tools such as TaxJar.
We’ll look at this well-known life-saving tool and explain how it can benefit you. While this is an extensive read, you should be able to assess whether TaxJar is what you need in the present.
Do you prefer watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive review of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What exactly is TaxJar? Status TaxJar
The company was founded in 2013 TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. TaxJar is a solution to the entire life cycle. Additionally, you can use it in all of your sales channels to ensure that you are in compliance with sales taxes. It simplifies the processes that take days to complete and can be completed in a matter of just a few minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is neat and simple. Let’s take a look at the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to ensure you have a tax accounting platform seamlessly works well along with sales funnels. If you’re using multiple sales channels, it is essential to ensure that everything is in order. The final thing you would like is to face a penalty due to missing a single minor point.
TaxJar lets you display your most important metrics in one place. That way, there’s no need to collect information from multiple sources and organize it into one platform. All you have to do is connect TaxJar then the system will handle the rest.
Other than that, TaxJar also integrates with other platforms that help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar lets customers make sales tax filings either manually or via their AutoFile feature. In this review, we’ll dig at both.
If you choose to go it alone, TaxJar will allow you to connect all those sales tools. Once the time comes for filing income tax returns, the team will instruct you on how to handle these. But, it is up to you and your team members to complete everything within the timeframe. TaxJar is there to help you understand what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. This feature will ensure that everything is automated, from calculating sales tax through recording, and then processing them. But, it is possible to incur additional charges if they are not part of the plan you select.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to assist you with your accounting woes. All orders made through your e-commerce channels can be combined into one dashboard using this platform. Once you’re on the platform you and your team can access everything you need, like an inventory of your transactions, reports and the data.
The most appealing aspect of the feature you’ve chosen is it allows you to update your account automatically each day. They not only let you keep track of how much you’ve collected and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard can also allow users to view in detail the sales tax totals for your business. You can also export the data in the form of a CSV file, if you want to use it for your financial planning and accounting processes or if your team needs it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to scramble for your documents when you’re in the event of a need. Even even if you already have an accountant, this function will help them be more efficient.
Additionally, knowing the figures for your sales tax in advance will allow you to allocate your money more efficiently. You’ll be aware of the budget you have for other operational expenses.
What’s more is that TaxJar provides training and tutorials and tutorials, not just for their platform , but also for anything connected to sales tax. Check out their webinars, guides or blog posts for additional info. Apart from that the sales tax calculator can be beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms offer superb features, but they can be too costly for your business. For this reason we’ll take a look at TaxJar’s pricing tiers and what each of these choices can provide you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They say it’s the best plan if you need help with filing requirements and reporting. It comes with sales tax reporting, four annual AutoFiles for free, as well as an CSV import. Even with the basic plan, you have access to their AI tax advice.
If you’re a small business proprietor, then this program could be perfect for you. It may not have all the features offered by TaxJar, but it has the essentials that you need.
Additionally, you can contact their customer support via their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking to get different from the standard features and options, then the Professional plan may be the best option for you. The price starts at $99 but you can increase it by adding custom features.
So how different is it from the starter plan?
In addition to accessing each of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and the ability to do advanced CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive business, you might need to opt for the Premium plan instead. It has all of the features that you require to make your tax filing easier. Additionally, they permit unlimited integrations with data imports Integrations with APIs, teams of members as well as AutoFiles.
There is also a team dedicated in managing your accounts. But, they don’t divulge how much the Premium plan is going to cost. Status TaxJar
However, they did say that the plan is custom-made to each user. Therefore, the cost will differ depending on what you need to run your business.
Luckily, you don’t have to risk your money to see if this platform is the right one 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 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 break. To summarize, here are the pros and cons of making use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers an online sales tax calculator.
- Support Service Team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to review local laws
The Final Verdict
With everything laid down, TaxJar is an excellent platform for businesses with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then you should try this.
Not only will it help you track your products and revenue, but it can assist you in meeting your deadlines. It is also a great platform for an accountant since they offer tax Advisor program. There are tips to follow and learn from their sessions about taxes through it.
Using TaxJar can help you reduce time and keep on top of each deadline and requirement you have to meet. If you’re living in an area with complex tax regulations, this will certainly help you to get your head around the subject. Status TaxJar
However, if managing your taxes is straightforward, then TaxJar could be a waste of investment. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to keep track of everything. If you’re finding the entire process easy to do, you might be better to do it by yourself.
FAQ Status TaxJar
What are the areas in which TaxJar provide API assistance?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify together with TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. The transactions’ amounts are in USdollars. If you’re using a different currency, you will need to convert it to USdollars before TaxJar will calculate your tax.