Taxes have always been among the most difficult things to handle, whether you’re running your own business or not. Particularly if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, particularly when you’re full of things to be done. When you’re not able to afford the funds to hire an accountant, making it your own could be risky. If you overlook one thing it could mean you have to redo things again!
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 ?
We can make life easier with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. Although this is quite an extensive read but you’ll be able to assess whether TaxJar is exactly what you need today.
Are you looking watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What exactly is TaxJar? Tax Outdoors
The company was founded in 2013 TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. In addition, you can apply it across all of your channels of sales to ensure that you are in compliance with your sales taxes. It streamlines processes that take days to complete and can be completed in a matter of just a few minutes.
TaxJar has been used in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is extensively used by online business owners to ensure that everything is neat and simple. Let’s look into the features and services offered by TaxJar.
Features and services
One of the most important things you’ll want to check is that your accounting tax software seamlessly works well with your sales channel. If you have multiple sales channels, it is essential to keep everything in place. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to display your critical metrics in one place. That way, there’s no need to collect information from multiple sources and then organize it on a single platform. All you need to do is integrate TaxJar, then the system will take care of the rest.
Other than that, TaxJar also integrates with other platforms that help with payment processing. Here’s a list of platforms that they can connect with:
TaxJar allows clients to make sales tax filings manually or through their AutoFile feature. In our review we’ll take a look into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect those sales tools. When it comes time to filing income tax returns, the team will instruct you on managing these. It is up for you and your team to complete the process within the timeframe. TaxJar will only provide guidance on what you need to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out any forms manually. This feature will ensure that everything will be automated, from calculating taxes on sales to recording and processing it. But, it is possible to incur additional costs if the feature is not included in the plan you chose.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be put together into one dashboard using this platform. Once you’re on the platform you and your staff can access everything you need, such as a list of your transactions, reports and data.
The greatest benefit of this option is the fact that it allows you to update your account automatically each day. Not only can they help you keep track of how much you’ve accumulated and how much you’ve earned, but they also let you keep track of when the next payments are due.
Their dashboard also allows you to fully view the sales tax totals within your company. It is also possible to export the data to the form of a CSV file in case you require it for your financial planning and accounting processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping the track of all the sales avenues you use. It means you don’t need to search for your documents when you need them in the event of a need. Even even if you already have an accountant, this feature can make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will allow you to allocate your funds more effectively. You’ll be aware of the budget you have for other operating expenses.
What’s more is that TaxJar offers tutorials and training not only on their platform, but everything connected to sales tax. You can check out their guides, webinars, as well as their blog to find more information. Apart from that, their sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We understand how important it is to set your budget. Certain platforms have amazing features, but they can be too expensive for businesses. This is why in this section we’ll examine TaxJar’s pricing tiers and what each of those plans can offer. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the most suitable plan for you for those who need assistance with filing requirements or reporting. It also includes sales tax reporting, 4 annual AutoFiles for free, as well as the option of a CSV import. With the starter plan, you can access their AI tax recommendations.
If you’re a small-scale company owner, this plan could be perfect for you. It might not include all of TaxJar’s features but it comes with the essentials that you need.
You can also contact the support team via their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking for something different from the standard features, then the Professional plan might be the right one for you. It’s priced at $99 but it can go higher by adding custom features.
So how different is it from the original plan?
In addition to having access to all of the Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose the Premium plan instead. It includes all of the features that you require to help with your taxes. Additionally, they permit unlimited import integrations of data API integrationsfor team users, and AutoFiles.
They also have a team dedicated for managing the account. They don’t reveal how much the Premium plan is going to cost. Tax Outdoors
However, they did mention that this plan is tailor-fit to each user. The cost of the plan will be different depending on what you need for your company.
Fortunately, you don’t need to bet your life on it to find out if the platform is right for you. If you’re still looking into various options, they provide 30 days of free trial. It should give you enough time to see whether the software is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you must know about TaxJar Let’s relax. In order to sum up the whole thing, here are the advantages and disadvantages of making use of TaxJar for your company.
- Has a Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable for USA customers
- Owners and accountants should check local legislation
The Final Verdict
With everything clearly laid down, TaxJar provides a fantastic platform to companies with multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then you should try this.
Not only will it assist you in keeping track of your revenue and products however, it will assist you in meeting the deadlines you set. It’s also an excellent option for accountants as they offer the Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
The use of TaxJar can allow you to save more time while keeping track of every deadline or requirement you need to fulfill. If you’re living in a region with a lot of tax laws, this can surely help you wrap your mind around it. Tax Outdoors
But if handling taxes is easy and straightforward, then TaxJar may be an unnecessary investment. If you have only one or two channels of sales, TaxJar won’t be needed to track everything. If you find the entire process easy to do and you’re comfortable with it, you may be better in doing it all by yourself.
FAQ Tax Outdoors
What areas does TaxJar provide API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I connect 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 kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transaction amounts are n US$. If you’re using another currency, you’ll have to convert it into USdollars prior to when TaxJar will calculate your tax.