Taxes have always been among the most difficult tasks to complete regardless of whether you run an enterprise or not. More so if you don’t have a degree in accounting or finance. Tax-related work can be overwhelming, particularly when you’re full of things to be done. In the event that you do not have enough money to engage an accountant making it your own could be risky. If you overlook one thing and you don’t know it, you may have to redo things again!
Almost everyone wants to skip this step. But , as it’s a requirement to be done, we can’t choose not to.
So what is the best way to deal with it?
It is always possible to make our lives easier by using tools like TaxJar.
We’ll look at this well-known life-saving tool and how it can benefit you. While this is a long read it is possible to determine if TaxJar is the tool you require today.
Prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
But for those who prefer to read, then let’s get right into it.
What is TaxJar? Taxable Or Nontaxable TaxJar Settings
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. Additionally, you can use it in all of your sales channels to ensure that you are in compliance with sales taxes. It streamlines processes that take days to complete and can be completed in a matter of just a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by business owners who run online businesses to keep everything neat and simple. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to make sure is your tax-reporting software seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple 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 key data in one location. So, there’s no need to collect information from multiple sources and then organize it on one platform. All you have to do is connect TaxJar, then the system will take care of the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar lets customers make sales tax filings either manually or via TaxJar’s AutoFile feature. For our review we’ll look into both.
If you opt to manually file your tax returns, TaxJar will allow you to connect those sales tools. When the time is right for the filing of income tax returns TaxJar will train you on how to handle them. But, it is up to you and your team to finish the tax returns on time. TaxJar is only there to provide guidance on what you should accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out all forms by hand. With this feature, everything will be automated from calculating sales taxes in order to record and process it. There could be additional charges if they are you do not include this feature in the plan you choose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be combined into a single dashboard through this platform. Once you’re on the platform you and your team can access everything you require, including an inventory of your transactions, reports, and data.
The best part about this option is the fact that it lets you to update your account automatically each day. Not only will they let you keep track of how much you’ve earned, but they also help you determine when your next payment is due.
Their dashboard can also allow you to fully view the total sales tax in your business. You can also export the data to the form of a CSV file if you need it for your accounting and financial planning processes or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep the track of all your sales channels. That means you won’t have to hunt for your paperwork when you need them in the event of a need. Even even if you already have an accountant, this function can help them be more efficient.
Additionally, knowing the figures 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 operational expenses.
What’s more is that TaxJar provides training and tutorials and tutorials, not just for their platform , but also everything connected to sales tax. Check out their webinars, guides or blog posts for additional details. In addition the sales tax calculator can be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb capabilities, but they’re often too costly for your business. For this reason we’ll take a look at TaxJar’s pricing levels and what each of those plans can offer. Currently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan costs $19. The company claims that it’s the best plan if you need help in filing and reporting. It also includes taxes on sales and sales as well as four 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 smaller company proprietor, then this program could be ideal for you. It may not have all the features offered by TaxJar, but it has all the basics you require.
In addition, you can reach their support team with their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking to get a bit more than just the basic features Professional could be the one for you. It’s priced at $99 however, it could go up by adding custom features.
What is the difference from the basic plan?
In addition to accessing all of the Starter plan’s features, you also get access to their phone customer support Access to APIs, phone support, and advanced CSV import. You can also receive 12 free AutoFiles every year.
If you run a large business, you might need to opt for an upgrade instead. It has all of the features you need to help with your taxes. Additionally, they permit unlimited import integrations of data API integrationsfor team users and AutoFiles.
They also have a staff who are devoted to managing your account. However, they don’t disclose how much the Premium plan costs you. Taxable Or Nontaxable TaxJar Settings
However, they did mention that this plan is customized for each user. Therefore, the cost will differ in line with what you require for your company.
Luckily, you don’t have to risk your money to find out if the platform is right for you. If you’re still looking into various options, they provide a 30-day free trial. This should give you enough time to see if the platform is an excellent fit for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar let’s take a breather. To sum it all up Here are the pros and cons of making use of TaxJar for your company.
- Has the Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms
- Allows you to track multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies with numerous sales channels, and that utilizes plenty of platforms. If that’s what you do, then you must try TaxJar.
Not only will it aid in tracking your products and revenue It can help you meet your deadlines. It’s also an excellent option for accountants as they have the Tax Advisor program. There are tips to follow and get knowledge from their seminars on taxes by using it.
Using TaxJar can help you reduce time and keep the track of each deadline and obligation you have to fulfill. If you live in an area with complex tax laws, this will surely help you wrap your head around it. Taxable Or Nontaxable TaxJar Settings
If handling taxes is easy, then TaxJar might not be a good investment. If you only have one or two sales channels, TaxJar won’t be needed to keep track of all of it. Moreover, if you find the entire procedure easy to complete, you might be better to do it on your own.
FAQ Taxable Or Nontaxable TaxJar Settings
Which areas does TaxJar offer API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can sync your Shopify account with TaxJar to facilitate monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. The transactions’ amounts are in USdollars. If you’re using another currency, you will need to convert it to US$ before TaxJar will calculate your tax.