Taxes are always one of the most difficult tasks to complete, whether you’re running a business or not. Particularly if you don’t have any experience in finance or accounting. Tax-related tasks can be overwhelming, particularly when you’re packed with things to do. When you’re not able to afford enough money to employ an accountant, doing it on yourself can be dangerous. If you overlook one thing it could mean you have to do it all over again!
Nearly everyone would prefer to skipping this step. But , as it’s a requirement, we have no choice.
So what is the best way to deal with it?
We can make life easier with tools such as TaxJar.
This article will take a look at this well-known life-saving device and how it can help you. Even though this is a long read it is possible to gauge whether TaxJar is exactly what you need right now.
Are you looking watching videos rather than watch them? 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? Taxes For Ecommerce TaxJar
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all your channels of sales to make sure you’re in compliance with sales taxes. It streamlines processes that can take days to complete, and can be completed in a matter of just a few minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is widely 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 ensure is your tax-reporting software is compatible in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to keep everything in place. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar lets you display your key data in one location. This means that there is no need to collect data in multiple channels and then organize it on a single platform. All you have to do is integrate TaxJar, and the platform will do all the rest.
In addition, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to make sales tax filings manually or through the AutoFile feature. In this review, we’ll dig into both.
If you opt to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. When it comes time to filing income tax returns TaxJar will train you on managing these. But, it is up for you and your staff to finish the tax returns in time. TaxJar will only help you understand what you have to do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out the forms in a manual manner. With this feature, everything will be automated, from calculating taxes on sales through recording, and then processing them. However, there might be additional costs if the feature is not part of the plan you chose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to ease your accounting woes. The orders you place through your online channels can be compiled into one dashboard using this platform. Once you’re on the platform, you and your team will have access to everything you need, such as the list of transactions, reports, and the data.
The best part about this feature is that it allows you to update your account automatically each day. Not only can they help to know the amount you’ve accumulated however, they can also help you keep track of when the next payment is due.
The dashboard allows you to fully view the overall sales taxes in your business. You can also export the information as the form of a CSV file if you need it to aid in process of financial planning and accounting or if you require it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of your sales channels. That means you won’t have to hunt for your paperwork whenever you’re when you’re in a pinch. Even when you already have your accountant, this feature will help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will help you plan your funds better. You’ll know exactly how much 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 everything connected to sales tax. You can check out their webinars, guides as well as their blog to find more information. Additionally, their sales tax calculator can be useful if you’re planning to 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 the business you run. That’s why for this section we’ll take a look at TaxJar’s pricing levels and what each of those options can offer you. At present, TaxJar offers three plans including Professional, Starter and Premium.
Their 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 includes the tax on sales, 4 annual AutoFiles for free, as well as the option of a CSV import. Even with the basic plan, you will be able to access their AI tax recommendations.
If you’re a small business owner, this plan could be ideal for you. It may not have all of TaxJar’s features but it comes with all the basics you require.
You can also contact their customer support via their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking for that is more than the standard features, then the Professional plan might be the right one for you. It starts at $99, however, it could go up if you add custom features.
How different is it from the basic plan?
In addition to accessing every one of Starter plan’s options, you also have access to their phone customer support Access to APIs, phone support, and advanced CSV import. You can also have 12 free AutoFiles each year.
If you own a huge business, you might need to choose premium plans instead. It has all of the features needed to help with your taxes. Moreover, they allow unlimited import integrations of data API integrations, team members as well as AutoFiles.
They also have a team who are devoted to managing your account. However, they don’t disclose the amount that the Premium plan is going to cost. Taxes For Ecommerce TaxJar
But they did state that the plan is custom-made for every user. The cost of the plan will be different according to what you require for your company.
Luckily, you don’t have to gamble your money just to see if this platform is right for you. If you’re still considering various options, they provide 30 days of free trial. This should be enough time to gauge whether the service is a good fit for you.
Pros and Cons
We’ve covered everything you should be aware of TaxJar let’s take a break. In order to sum up the whole thing, here are the pros and cons of making use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator.
- 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
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid down, TaxJar can be a great platform companies that have multiple sales channels and uses many platforms. If that’s what you’re doing, then you should try this.
Not only will it assist you in keeping track of the sales and profits of your business, but it can also help you meet the deadlines you set. This is also an excellent opportunity for accountants since they have the Tax Advisor program. You can find tips and learn from their sessions on taxes by using it.
Using TaxJar can allow you to get more done while keeping track of every deadline and obligation you have to fulfill. If you live in a region with a lot of tax regulations, this will certainly help you to get your head around the subject. Taxes For Ecommerce TaxJar
However, if managing your taxes is straightforward, then TaxJar could be a waste of expense. If you only have one or two sales channels, TaxJar won’t be needed to track everything. In addition, if you find the entire procedure simple to follow and you’re comfortable with it, you may be better off doing it by yourself.
FAQ Taxes For Ecommerce TaxJar
What areas does TaxJar offer API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with TaxJar?
Yes. You can connect 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 cannot convert currencies. All of the transactions are in USdollars. If you’re using another currency, you will need to convert it into USUSD prior to when TaxJar will calculate your tax.