Taxes have always been among the most difficult tasks to complete regardless of whether you run a business or not. Particularly if you don’t have a background in accounting or finance. Tax-related issues can be overwhelming, especially when your whole day is packed with things to do. In the event that you do not have the budget to hire an accountant, doing it on yourself can be risky. If you make a mistake it could mean you have to redo things again!
Nearly everyone would prefer to skipping this step. However, since it’s mandatory, we have no choice.
So , what can we do ?
We can simplify our lives with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and explain how it can help you. Although this is quite an extensive read it is possible to determine if TaxJar is what you need right now.
Prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
If you prefer to read, then we’ll dive right into.
What is TaxJar TaxJar And Digital River
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize it across all your channels of sales to ensure compliance with your sales taxes. It streamlines processes that require days to complete and can be completed in a matter of only a few minutes.
TaxJar is used in a variety of industries, including food and beverage businesses, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is extensively used by owners of online businesses to ensure that everything is neat and simple. Let’s take a look at the benefits and features of TaxJar.
Features and services
One of the first things you’ll need to make sure is your tax-reporting platform seamlessly works well along with sales funnels. If you’re selling through multiple channels, it is essential to maintain everything in line. The last thing you want is to be penalized for missing a single minor point.
TaxJar lets you display your critical data in one location. This means that there is no need to collect information from multiple sources and sort it into a single platform. All you need to do is connect TaxJar and the platform will handle the rest.
Apart from that, TaxJar also integrates with other platforms that help with payments. Here’s a list of platforms that they can connect with:
TaxJar allows clients to make sales tax filings manually or through TaxJar’s AutoFile feature. In the purpose of this article, we’ll dig into both.
If you decide to go it alone, TaxJar will allow you to connect all of your sales platforms. When the time is right for filing tax returns for income, the team will instruct you on how to handle these. However, it will be up to you and your staff to complete the process within the timeframe. TaxJar is only there to help you understand what you need to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out any forms manually. With this feature, everything is automated, from calculating taxes on sales in order to record and process it. But, it is possible to incur additional costs if the feature is not part of the plan you chose.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting issues. Your orders from your e-commerce channels can be combined into a single dashboard via 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 the data.
The best part about this feature is that they allow you to update automatically every day. They not only let you keep track of how much you’ve collected however, they can also help you keep track of when the next payments are due.
Their dashboard can also allow you to see the overall sales taxes within your company. Additionally, you can export your data as the form of a CSV file, if you want to use it for your process of financial planning and accounting or if your team requires it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep on top of all your sales channels. That means you won’t have to hunt for your paperwork when you need them when you’re in a pinch. Even when you already have your accounting firm, the feature can aid them in being more efficient.
Moreover, knowing the estimates for your sales tax in advance can help you allocate your money more efficiently. You’ll be aware of the budget you have available for other operating costs.
The best part is that TaxJar offers training and tutorials, not just for their platform , but also everything that has to do with sales tax. You can check out their guides, webinars, or blog posts for additional information. Apart from that, their sales tax calculator should be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms provide amazing features, but they’re sometimes too costly for your business. For this reason we’ll take a look at TaxJar’s pricing structures and the features that each of these plans can offer. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan is priced at $19. The company claims that it’s the most suitable plan for you to help you with filing requirements and reporting. It comes with taxes on sales and sales as well as four annual AutoFiles for free, as well as a CSV import. Even with the basic plan, you will be able to access their AI tax recommendations.
If you’re a smaller company proprietor, then this program will be perfect for you. It might not include all the features offered by TaxJar however, it does include the basic features you require.
Additionally, you can contact their customer support via their email support chart. You’ll also be able to use their integration features.
If you’re looking to get that is more than the basics, then the Professional plan could be the one for you. It’s priced at $99 but it can go higher by adding custom features.
So how different is it from the basic plan?
In addition to accessing all of the Starter plan’s features, you also get access to the support of their customer service via phone Access to APIs, phone support, and the ability to do advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large company, you may need to go for an upgrade instead. It includes all of the features that you require to help with your taxes. Moreover, they allow unlimited data import integrations as well as API integrationsfor team users and AutoFiles.
They also have a staff that is devoted for managing the account. However, they don’t disclose how much the Premium plan will cost you. TaxJar And Digital River
However, they did say that this plan is customized to each user. The cost of the plan will be different in line with what you require for your business.
Fortunately, you don’t need to gamble your money just to find out if the platform is right for you. If you’re still looking into different options, they offer the opportunity to try a free trial for 30 days. This should be enough time to determine whether the service is a good fit for you.
Pros and Cons
We’ve covered everything you need to know about TaxJar let’s take a break. To summarize, here are the pros and cons of using TaxJar for your company.
- Has the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It can be integrated with other platforms
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers.
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to companies with multiple sales channels and uses many platforms. If this sounds like the way you do, then you should try this.
It’s not just a way to assist you in keeping track of your products and revenue, but it can also help you meet the deadlines you set. It is also a great opportunity for accountants since they have the Tax Advisor program. There are tips to follow and get knowledge from their seminars on taxes by using it.
The use of TaxJar will help you save more time while keeping track of every deadline and requirement you have to fulfill. If you’re living in a place with complicated tax laws, this will definitely help you get your head around the subject. TaxJar And Digital River
But if handling taxes is easy, then TaxJar might not be a good expense. If you have only one or two sales channels, TaxJar won’t be needed to keep track of everything. If you’re finding the entire procedure simple to follow then you’re better off doing it on your own.
FAQ TaxJar And Digital River
Which areas does TaxJar provide API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify together with TaxJar?
Yes. You can sync your Shopify account with TaxJar to make it easier to monitor and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All of the transaction amounts are n USdollars. If you’re using another currency, you’ll need to convert it to USdollars before TaxJar will calculate the tax.