Taxes have always been one of the most difficult things to handle regardless of whether you’re running an enterprise or not. More so if you don’t have a background in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is full of things to be done. In the event that you do not have enough money to hire an accountant, making it yourself can be risky. If you miss one detail and you don’t know it, you may have to do it all over again!
Most people want to skipping this step. However, since it’s mandatory to be done, we can’t choose not to.
So what can we do ?
We can simplify our lives by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. While this is lengthy, you should be able to assess whether TaxJar is the tool you require in the present.
Prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
For those who like to read, then we’ll dive right into.
What exactly is TaxJar? Tax Cloud Or TaxJar
Founded in 2013, TaxJar is an application that automatizes your reporting, 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 sales channels to ensure compliance with your sales taxes. It makes the process simpler that could require days to complete and finish within minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by owners of online businesses to make their business more simple and organized. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the most important things you’ll need to make sure is that your accounting tax platform seamlessly works well along with sales funnels. If you’re using multiple sales channels, you must keep everything in place. The final thing you would like is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your key data in one location. That way, there’s no need to gather data from different channels and sort it into a single platform. All you need to do is to integrate TaxJar, then the system will handle all the rest.
In addition, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms they are able to integrate with:
TaxJar lets customers make sales tax filings manually or through the AutoFile feature. In our review we’ll look into both.
If you choose to do it manually, TaxJar will allow you to connect all those sales tools. When the time is right for filing tax returns for income, the team will instruct you on how to handle them. However, it will be up to you and your team to complete everything on time. TaxJar is only there to guide you on what you need to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out the forms in a manual manner. With this feature, everything is automated, from calculating sales taxes to recording and processing them. But, it is possible to incur extra fees if not included in the plan you select.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to help you with your accounting issues. 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 can access everything you need, like the list of transactions, reports, as well as data.
The best part about the feature you’ve chosen is it lets you to update automatically every day. They not only let you keep track of how much you’ve earned and how much you’ve earned, but they also let you determine when your next payments are due.
The dashboard allows users to view in detail the overall sales taxes within your company. Additionally, you can export the information to CSV format. CSV file in case you require it for your process of financial planning and accounting or if you require it to run centralized reports.
Streamlining and Training
TaxJar helps organize and keep track of all of the channels you sell through. It means you don’t need to scramble for your documents when you need them in a pinch. Even when you already have your accountant, this function will make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know exactly how much budget you have to cover other operating costs.
What’s more is that TaxJar provides training and tutorials, not just on their platform, but everything that has to do with sales tax. You can check out their webinars, guides or blog posts for additional information. In addition the sales tax calculator should be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms offer superb capabilities, but they’re often too expensive for businesses. This is why in this section, we’ll look into TaxJar’s pricing tiers and the features that each of these plans can offer. Currently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan costs $19. They claim that it’s the best plan if you need help with filing requirements or reporting. It also includes the tax on sales, 4 free yearly AutoFiles, and the option of a CSV import. Even with the basic plan, you have access to their AI tax tips.
If you’re a small business owner, this plan should be ideal for you. It might not include all the features offered by TaxJar, but it has all the basics you require.
You can also contact the support team via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for different from the standard features, then the Professional plan could be the one for you. The price starts at $99 however, it could go up when you add additional features.
So how different is it from the original 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 advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you have a massive business, you might need to opt for premium plans instead. It includes all of the features needed to aid in your tax preparation. Additionally, they permit unlimited import integrations of data, API integrations, team members and AutoFiles.
They also have a team dedicated in managing your accounts. They don’t reveal how much the Premium plan is going to cost. Tax Cloud Or TaxJar
But they did state that the plan is custom-made to each user. The cost of the plan will be different in line with what you require for your business.
Luckily, you don’t have to risk your money to determine if this service is for you. If you’re still considering other options, they have the opportunity to try a free trial for 30 days. This should be enough time to gauge if the platform is the right choice for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a break. To summarize we’ll go over the pros and cons of making use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- 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 have access to the API feature.
- Only valid for USA customers
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies with numerous sales channels, and that utilizes numerous platforms. If that’s what you’re doing, then must try TaxJar.
Not only will it assist you in keeping track of your revenue and products however, it will help you meet your deadlines. It is also a great platform for an accountant since they provide tax Advisor program. You can get tips and learn from their sessions about taxes through it.
Using TaxJar will help you reduce time and keep the track of each deadline and obligation you have to meet. If you’re in an area with complex tax laws, this can definitely help you get your head around it. Tax Cloud Or TaxJar
If handling taxes is easy If it isn’t, then TaxJar could be a waste of investment. If you have only one or two sales channels, TaxJar won’t be needed to keep track of everything. Moreover, if you find the entire procedure easy to complete then you’re better to do it on your own.
FAQ Tax Cloud Or TaxJar
Which areas does TaxJar provide API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can sync 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 does not convert currencies. The transaction amounts are n USdollars. If you’re using a different currency, you’ll need to convert it into USdollars prior to when TaxJar can calculate the tax.