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 any experience in finance or accounting. Tax-related issues aren’t easy, particularly when your whole day is filled with tasks to complete. When you’re not able to afford the budget to hire an accountant, performing the task on yourself can be dangerous. If you make a mistake and you don’t know it, you may have to redo things again!
Almost everyone wants to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
So , what can we do ?
We can make life easier with tools such as TaxJar.
This article will take a look at this popular life-saving device and how it can help you. Even though this is lengthy but you’ll be able to determine if TaxJar is the tool you require in the present.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
But for those who prefer to read, then let’s dive right in.
What exactly is TaxJar? Tax Exceptionalism
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Additionally, you can use it across all of your sales channels to make sure you’re in compliance with sales tax requirements. It makes the process simpler that could can take days to complete, and is completed in just a few only a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is widely used by online business owners to make their business more organized and straightforward. Let’s take a look at their features and services.
Features and services
One of the first things you’ll need to ensure is your tax-reporting platform perfectly integrates with your sales channel. If you’re using multiple sales channels, you need to ensure that everything is in order. The final thing you would like is to face a penalty due to overlooking just one minor detail.
TaxJar allows you to display your key data in one location. This means that there is no need to collect data from different channels and organize it into a single platform. All you have to do is connect TaxJar, and the platform will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist with payments. Here’s a list of the platforms they can integrate with:
TaxJar allows clients to file their sales taxes manually or through TaxJar’s AutoFile feature. For the purpose of this article, we’ll dig at both.
If you decide to do it manually, TaxJar will allow you to connect all the sales channels you use. When it comes time to filing income tax returns, the team will instruct you on how to handle the tax returns. However, it will be up for you and your staff to complete everything within the timeframe. TaxJar is there to provide guidance on what you need to do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out the forms in a manual manner. Through this feature, everything is automated, from calculating sales taxes through recording, and then processing it. However, there might be additional charges if they are not included in the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be combined into a single dashboard via this platform. From there you and your team will have access to all the information you require, including the list of transactions, reports and information.
The most appealing aspect of this option is the fact that they allow you to update your account automatically each day. Not only will they let to know the amount you’ve earned however, they can also help you track when your following payments are due.
Their dashboard also allows you to fully view the total sales tax within your company. It is also possible to export the information to the form of a CSV file in case you require it to aid in accounting and financial planning processes or if your team needs it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all your sales channels. It means you don’t need to search for your documents when you’re when you’re in a pinch. Even if you already have your accounting firm, the feature will make them more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will help you plan your funds more effectively. You’ll know better how much budget you have for other operational costs.
What’s more is that TaxJar offers training and tutorials not only on their platform, but for anything that has to do with sales tax. You can look through their guides, webinars, or blog posts for additional information. Apart from that, their 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 set your budget. Some platforms provide amazing capabilities, but they’re often too expensive for businesses. For this reason, we’ll look into TaxJar’s pricing tiers and what each of these choices can provide you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. They claim that it’s the best plan for those who need assistance in filing and reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a smaller business owner, this plan could be perfect for you. It may not offer all of TaxJar’s features but it comes with the essentials that you need.
In addition, you can reach the support team via their support chart for email. You’ll also be able to use their integration features.
If you’re looking to get that is more than the basic features and options, then the Professional plan could be the one for you. It’s priced at $99 but you can increase it by adding custom features.
What is the difference 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 access to APIs, as well as advanced CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you own a huge enterprise, you may want to choose an upgrade instead. It includes all of the features you need to make your tax filing easier. Additionally, they permit unlimited data import integrations as well as API integrations, team members and AutoFiles.
There is also a team dedicated for managing the account. However, they don’t disclose how much the Premium plan will cost you. Tax Exceptionalism
However, they did mention that the plan is custom-made to each user. Therefore, the cost will differ according to 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 a 30-day free trial. This should be enough time to gauge whether the service is a good fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a break. To summarize Here are the advantages and disadvantages 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 Taxes on sales online calculator
- Has support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms.
- Allows you to track multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature
- Only valid for USA customers
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything laid out TaxJar provides a fantastic platform to companies that have numerous sales channels, and that utilizes numerous platforms. If that’s what you do, then you ought to try this.
Not only can it help you track your products and revenue It can help you meet the deadlines you set. This is also an excellent option for accountants as they provide tax Advisor program. There are tips to follow and learn from their sessions regarding taxes via it.
Utilizing TaxJar can help you save more time while keeping on top of each deadline and obligation you have to meet. If you’re in a place with complicated tax regulations, this will certainly help you to get your head around it. Tax Exceptionalism
If handling your taxes is simple, then TaxJar may be an unnecessary expense. If you only have one or two channels of sales, TaxJar won’t be needed to keep track of all of it. Moreover, if you’re finding the entire process easy to do then you’re better to do it on your own.
FAQ Tax Exceptionalism
What are the areas in which TaxJar offer API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in US$. If you’re using a different currency, you’ll need to convert it to USUSD before TaxJar determines your tax.