Taxes have always been among the most difficult tasks to complete regardless of whether you run your own business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related issues can be overwhelming, particularly when you’re filled with tasks to complete. If you don’t have enough money to employ an accountant, doing it on your own could be risky. If you make a mistake, you might have to do it all over again!
Most people want to skip this step. But since it’s required and mandatory, there’s no other choice.
So what can we do ?
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 explain how it can assist you. Although this is quite a long read, you should be able to determine if TaxJar is what you need today.
Do you prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of TaxJar’s features.
But for those who prefer to read, we’ll dive right into.
What is TaxJar? TaxJar Amazon Sales Tax Setup By State
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it across all of your sales channels to ensure that you are in compliance with sales tax requirements. It makes the process simpler that could take days to complete and is completed in 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 ensure that everything is simple and organized. Let’s explore the benefits and features of TaxJar.
Features and services
One of the first things you’ll need to ensure is that your accounting tax system seamlessly works well with your sales channel. If you’re using multiple sales channels, it is essential to maintain everything in line. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to show your key metrics in one place. This means that there is no need to gather data in multiple channels and then organize it on a single platform. All you have to do is integrate TaxJar it will handle all the rest.
In addition, TaxJar also integrates with other platforms that can help with payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows clients to file their sales taxes manually or through their AutoFile feature. In this review, we’ll dig at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect your sales platforms. Once the time comes for filing income tax returns, the team will instruct you on how to handle them. However, it will be up to you and your team to complete the process within the timeframe. TaxJar is there to help you understand 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 any forms manually. Through this feature, everything will be automated, from calculating taxes on sales to recording and processing it. However, there might be additional charges if they are not included in the plan you select.
Sales Tax Reports
As we mentioned, you can use TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be put together into a single dashboard via this platform. Once you’re on the platform, you and your team will have access to all the information you need, like an inventory of your transactions, reports, as well as data.
The most appealing aspect of the feature you’ve chosen is it allows you to automatically update every day. Not only can they help you keep track of how much you’ve collected however, they can also help you determine when your next payments are due.
The dashboard allows you to fully view the overall sales taxes for your business. You can also export your data in a CSV file in case you require it for your financial planning and accounting processes 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. This means that you don’t have to hunt for your paperwork when you need them in a pinch. Even if you already have your accountant, this feature will make them more efficient.
Additionally, knowing the figures for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know better how much budget you have available for other operating costs.
What’s more is that TaxJar offers training and tutorials not only for their platform but for anything related to sales tax. Check out their webinars, guides, and blog for more details. 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 determine your budget. Some platforms offer superb features, but they’re sometimes too expensive for businesses. That’s why for this section we’ll examine TaxJar’s pricing levels and the features that each of these choices can provide you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan is priced at $19. They claim that it’s the most effective plan if you need help in filing and reporting. It includes the tax on sales, 4 autofiles for free each year, and a CSV import. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a small company owner, this plan could be ideal for you. It may not offer all of TaxJar’s features however, it does include the basic features you require.
Additionally, you can contact their support team with their email support chart. You’ll also be able to use their integration tools.
If you’re looking for a bit more than just the basics and options, then the Professional plan might be the right one for you. It starts at $99, however, it could go up when you add additional features.
How different is it from the starter plan?
In addition to accessing each of Starter plan’s options, you also have access to their support via phone access to APIs, as well as sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you own a huge business, you might need to go for the Premium plan instead. It comes with all the features you need to aid in your tax preparation. Moreover, they allow unlimited import integrations of data Integrations with APIs, teams of members and AutoFiles.
They also have a team that is devoted in managing your accounts. But, they don’t divulge how much the Premium plan is going to cost. TaxJar Amazon Sales Tax Setup By State
But they did state that this plan is tailor-fit for every user. Therefore, the cost will differ according to what you require for your business.
Fortunately, you don’t need to risk your money to see if this platform is the right one for you. If you’re still looking into different options, they offer 30 days of free trial. It should give you enough time to gauge if the platform is a good fit for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar let’s take a breather. To summarize Here are the pros and cons of using TaxJar for your company.
- There is 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
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms
- Allows you to track 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 review local laws
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies with many sales channels and utilizes many platforms. If this sounds like the way you do, then you ought to try this.
Not only can it aid in tracking your revenue and products It can assist you in meeting your deadlines. It is also a great platform for an accountant since they offer a Tax Advisor program. There are tips to follow and learn from their sessions about taxes through it.
Utilizing TaxJar can allow you to 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 definitely help you get your mind around it. TaxJar Amazon Sales Tax Setup By State
If handling your taxes is straightforward 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 keep track of everything. If you find the whole procedure easy to complete then you’re better in doing it all by yourself.
FAQ TaxJar Amazon Sales Tax Setup By State
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 with TaxJar?
Yes. You can connect your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions’ amounts are in USdollars. If you’re using a different currency, you’ll need to convert it into US$ prior to when TaxJar determines the tax.