Taxes have always been among the most difficult things to handle, whether you’re running your own business or not. Even more so if you do not have a background in accounting or finance. Tax-related issues can be overwhelming, particularly when your whole day is packed with things to do. In the event that you do not have enough money to engage an accountant making it yourself can be risky. If you overlook one thing it could mean you have to do it all over again!
Almost everyone wants to avoid this step. However, since it’s mandatory to be done, we can’t choose not to.
So what can we do ?
It is always possible to simplify our lives by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. While this is a long read but you’ll be able to determine if TaxJar is exactly what you need right now.
Do you prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, then we’ll dive right into.
What is TaxJar? TaxJar And Competitors Evaluation
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculation. It’s a solution for your entire sales tax life cycle. Additionally, you can use it in all of the sales channels you use to ensure compliance with sales tax requirements. It streamlines processes that take days to complete and can be completed in a matter of only a few minutes.
TaxJar has been used in a variety of industries, including 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 ensure that everything is organized and straightforward. Let’s explore the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to ensure you have a tax accounting system seamlessly works well with your sales channel. If you have multiple sales channels, it is essential to ensure that everything is in order. The final thing you would like is to get a penalty for overlooking just one minor detail.
TaxJar allows you to show your critical metrics in one place. So, there’s no requirement to collect information from multiple sources and sort it into a single platform. All you need to do is to integrate TaxJar and the platform will do all the rest.
Other than that, TaxJar also integrates with other platforms that help with payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows clients to submit their sales tax manually or through their AutoFile feature. For our review we’ll dig at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When the time is right for filing tax returns for income, the team will instruct you on how to manage these. But, it is up to you and your team to complete everything on time. TaxJar is only there to guide you on what you should do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out all forms by hand. This feature will ensure that everything will be automated from calculating taxes on sales through recording, and then processing them. There could be additional costs if the feature is not part of the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to ease your accounting problems. 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 staff will have access to all the information you require, including a list of your transactions, reports and information.
The best part about the feature you’ve chosen is it lets you to update your account automatically each day. Not only can they help you keep track of how much you’ve collected and how much you’ve earned, but they also let you determine when your next payments are due.
Their dashboard also allows users to view in detail the overall sales taxes for your business. You can also export your data to CSV format. CSV file in case you require it in your process of financial planning and accounting or if your team requires it for central reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of the sales avenues you use. It means you don’t need to hunt for your paperwork when you’re in a pinch. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will help you plan your money more efficiently. You’ll know exactly how much budget you have available for other operational expenses.
What’s more is that TaxJar offers tutorials and training, not just for their platform , but also for anything that has to do with sales tax. You can look through their guides, webinars, and blog for more details. Apart from that, their sales tax calculator can be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to determine your budget. Some platforms offer superb capabilities, but they’re often too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing structures and what each of these choices can provide you. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. They say it’s the best plan if you need help 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 advice.
If you’re a small-scale business manager, the plan should be ideal for you. It might not include all of TaxJar’s features however, it does include all the basics you require.
In addition, you can reach their support team with their email support chart. You’ll also be able to use their integration features.
If you’re looking for something that is more than the basics Professional might be the right one for you. It’s priced at $99 however, it could go up when you add additional features.
How different is it from the starter plan?
Apart from having access to all of the Starter plan’s features, you also get access to the support of their customer service via phone access to APIs, as well as advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you have a massive company, you may need to go for premium plans instead. It comes with all the features that you require to make your tax filing easier. Additionally, they permit unlimited integrations with data imports API integrationsfor team users, and AutoFiles.
There is also a team that is devoted for managing the account. But, they don’t divulge the amount that the Premium plan will cost you. TaxJar And Competitors Evaluation
However, they did say that this plan is tailor-fit to each user. Therefore, the cost will differ depending on what you need for your business.
Fortunately, you don’t need to gamble your money just to determine if this service is for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. It should give you enough time to see whether the software is the right choice for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar let’s take a breather. To sum it all up Here are the advantages and disadvantages of the use of TaxJar to run your business.
- There is the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers Taxes on sales online calculator
- Support Service Team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms.
- It allows you to monitor multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only applicable to USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid out, TaxJar is an excellent platform for 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 aid in tracking your products and revenue however, it will also help you meet your deadlines. It’s also an excellent platform for an accountant since they provide tax Advisor program. There are tips to follow and learn from their sessions 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 meet. If you’re in a region with a lot of tax regulations, this will definitely help you get your head around the subject. TaxJar And Competitors Evaluation
If handling your taxes is simple If it isn’t, then TaxJar might not be a good investment. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of all of it. In addition, if you find the entire procedure simple to follow then you’re better in doing it all by yourself.
FAQ TaxJar And Competitors Evaluation
What are the areas in which TaxJar provide API assistance?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transaction amounts are n USdollars. If you’re using a different currency, you will need to convert it into USdollars prior to when TaxJar can calculate the tax.