Taxes have always been one of the most difficult tasks to complete, whether you’re running an enterprise or not. Even more so if you do not have any experience in finance or accounting. Tax-related tasks can be overwhelming, particularly when you’re filled with tasks to complete. In the event that you do not have enough money to employ an accountant, doing it on your own can be risky. If you overlook one thing and you don’t know it, you may need to repeat the process!
Most people want to skip this step. But since it’s required to be done, we can’t choose not to.
So , what can we do about it?
It is always possible to make life easier by using tools like TaxJar.
This article will take a look at this 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 right now.
Prefer to watch videos instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
But for those who prefer to read, let’s get right into it.
What is TaxJar? Stripe And TaxJar
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. Additionally, you can use it in all of your sales channels to ensure that you are in compliance with your sales taxes. It simplifies the processes that take days to complete and finish within just a few minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services and even medical establishments.
How can this help you?
TaxJar is extensively used by owners of online businesses to keep everything simple and organized. Let’s take a look at their features and services.
Services and features
One of the first things you’ll need to make sure is your tax-reporting software seamlessly works well along with sales funnels. If you’re selling through multiple channels, you must keep everything in place. The final thing you would like is to get a penalty for overlooking just one minor detail.
TaxJar allows you to show your critical metrics in one place. This means that there is no requirement to collect information from multiple sources and then organize it on one platform. All you need to do is to integrate TaxJar, it will take care of the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to submit their sales tax either manually or via their AutoFile feature. For our review we’ll take a look at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all of your sales platforms. When the time is right for filing tax returns for income, the team will instruct you on managing the tax returns. It is up to you and your staff to complete the process in time. TaxJar is there to help you understand what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out all forms by hand. This feature will ensure that everything will be automated, from calculating sales taxes through recording, and then processing them. There could be additional charges if they are not included in the plan you chose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to ease your accounting woes. Your orders from your e-commerce channels can be combined into one dashboard using this platform. From there you and your staff can access everything you need, like an inventory of your transactions, reports, and data.
The greatest benefit of this option is the fact that it allows you to automatically update every day. Not only can they help you keep track of how much you’ve collected, but they also help you keep track of when the next payments are due.
Their dashboard also allows you to see the overall sales taxes for your business. Additionally, you can export the data in a CSV file if you need it in your financial planning and accounting processes or if your team requires it for central reporting.
Training and Streamlining
TaxJar helps organize and keep the track of all your sales channels. This means that you don’t have to search for your documents when you’re in a pinch. Even even if you already have an accounting firm, the feature can help them be more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have to cover other operating costs.
What’s more is that TaxJar offers tutorials and training, not just for their platform , but also for anything connected to sales tax. You can look through their guides, webinars, and blog for more details. Apart from that the sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. For this reason we’ll examine TaxJar’s pricing levels and what each of these options can offer you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan is priced at $19. They claim that it’s the best plan to help you with filing requirements and reporting. It also includes the tax on sales, four autofiles for free each year, and an CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small-scale company owner, this plan should be perfect for you. It may not have all the features of TaxJar however, it does include all the basics you require.
You can also contact their support team with their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking for different from the standard features, then the Professional plan might be the right one for you. It starts at $99, but it can go higher when you add additional features.
So how different is it from the basic 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, as well as sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you have a massive enterprise, you may want to go for the Premium plan instead. It has all of the features needed to aid in your tax preparation. In addition, they offer unlimited data import integrations API integrations, team users and AutoFiles.
They also have a staff dedicated for managing the account. But, they don’t divulge the amount that the Premium plan costs you. Stripe And TaxJar
However, they did mention that the plan is custom-made to each user. Therefore, the cost will differ depending on what you need for your business.
Fortunately, you don’t need to risk your money to see if this platform is right for you. If you’re still looking into various options, they provide 30 days of free trial. This should give you enough time to gauge whether the service is the right choice for you.
Pros and Cons
Now that we’ve covered all you must know about TaxJar let’s take a breather. To sum it all up Here are the pros and cons of using TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Has support service team
- The dashboard is easy 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 valid for USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to businesses with many sales channels and utilizes many platforms. If that’s what you’re doing, then should try this.
It’s not just a way to assist you in keeping track of the sales and profits of your business however, it will assist you in meeting the deadlines you set. This is also an excellent option for accountants as they have tax Advisor program. You can get tips and get knowledge from their seminars about taxes through it.
The use of TaxJar can allow you to get more done while keeping track of every deadline and obligation you have to meet. If you live in a place with complicated tax regulations, this will certainly help you to get your head around it. Stripe And TaxJar
However, if managing your taxes is simple and straightforward, then TaxJar may be an unnecessary expense. If you have only one or two sales channels, TaxJar won’t be needed to keep track of everything. In addition, if you find the entire procedure simple to follow and you’re comfortable with it, you may be better to do it by yourself.
FAQ Stripe And TaxJar
What are the areas in which TaxJar provide API support?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All of the transaction amounts are n US$. If you’re using a different currency, you’ll have to convert it into US$ before TaxJar will calculate your tax.