Taxes are always one of the most difficult things to handle, whether you’re running a business or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, particularly when you’re full of things to be done. If you don’t have enough money to hire an accountant, performing the task on your own could be dangerous. If you miss one detail it could mean you 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 can we do about it?
We can make our lives easier by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and explain how it can help you. Even though this is an extensive read but you’ll be able to assess whether TaxJar is what you need today.
Prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
But for those who prefer to read, then let’s get right into it.
What is TaxJar? TaxJar And Fba
Founded in 2013, TaxJar is an application that automatizes your reporting, filings and sales tax calculations. It is a solution for your entire sales tax life cycle. Furthermore, you can utilize it in all of the sales channels you use to ensure that you are in compliance with sales taxes. It streamlines processes that can take days to complete, and is completed in just a few just a few minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is extensively used by owners of online businesses to keep everything organized and straightforward. Let’s look into their features and services.
Features and services
One of the most important things you’ll need to make sure is that your accounting tax platform perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you must maintain everything in line. The final thing you would like is to be penalized for missing a single minor point.
TaxJar allows you to show your critical metrics in one spot. This means that there is no requirement to collect data in multiple channels and then organize it on one platform. All you have to do is connect TaxJar, and the platform will handle the rest.
In addition, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms they can integrate with:
TaxJar lets customers submit their sales tax manually or through their AutoFile feature. In our review we’ll dig at both.
If you choose to go it alone, 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 handle the tax returns. However, it will be up for you and your team members to finish the tax returns in time. 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 the forms in a manual manner. This feature will ensure that everything will be automated, from calculating sales tax through recording, and then processing it. However, there might be additional costs if the feature is not included in the plan you chose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to assist you with your accounting woes. The orders you place through your online channels can be put together into one dashboard using this platform. Once you’re on the platform you and your staff can access everything you need, such as an inventory of your transactions, reports, and the data.
The greatest benefit of this feature is that they allow you to update your account automatically each day. Not only will they let you keep track of how much you’ve accumulated, but they also help you keep track of when the next payment is due.
The dashboard allows users to view in detail the total sales tax for your business. You can also export the information in the form of a CSV file if you need it in your financial planning and accounting processes or if you require it for central reporting.
Training and Streamlining
TaxJar helps you organize and keep on top of all your sales channels. This means that you don’t have to search for your documents whenever you’re in a pinch. Even if you already have your accountant, this feature can aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will allow you to allocate your funds better. You’ll know better how much budget you have for other operating costs.
The best part is that TaxJar offers tutorials and training and tutorials, not just on their platform, but everything connected to sales tax. You can look through their guides, webinars, or blog posts for additional details. In addition, their sales tax calculator should be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to determine your budget. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. That’s why for this section, we’ll look into TaxJar’s pricing structures and the features that each of these plans can offer. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. The company claims that it’s the most effective plan for those who need assistance with filing requirements and reporting. It includes sales tax reporting, four annual AutoFiles for free, as well as an CSV import. Even with the basic plan, you will be able to access their AI tax recommendations.
If you’re a small-scale business owner, this plan should be ideal for you. It may not offer all the features of TaxJar, but it has all the basics you require.
Additionally, you can contact their customer support via their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking for different from the basic features and options, then the Professional plan might be the right one for you. The price starts at $99 however, it could go up by adding custom features.
So how different is it from the starter 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 the ability to do advanced CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you run a large business, you might need to go for premium plans instead. It includes all of the features you need to help with your taxes. Moreover, they allow unlimited data import integrations, API integrations, team members, and AutoFiles.
There is also a team dedicated to managing your account. They don’t reveal the amount that the Premium plan is going to cost. TaxJar And Fba
But they did state that this plan is tailor-fit for each user. Therefore, the cost will differ depending on what you need for your business.
Fortunately, you don’t need to risk your money to find out if the platform is for you. If you’re still looking into other options, they have a 30-day free trial. It should give you enough time to gauge whether the software is the right choice for you.
Pros and Cons
We’ve covered everything you need to know about TaxJar let’s take a break. To summarize we’ll go over the advantages and disadvantages of the use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Provides 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.
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies that have many sales channels and utilizes plenty of platforms. If this sounds like the way you do, then you should try this.
Not only will it help you track the sales and profits of your business, but it can help you meet the deadlines you set. It is also a great option for accountants as they provide a Tax Advisor program. You can get tips and get knowledge from their seminars about taxes through it.
Utilizing TaxJar can allow you to reduce time and keep on top of each deadline and requirement you have to fulfill. If you’re living in a place with complicated tax laws, this will certainly help you to get your mind around it. TaxJar And Fba
But if handling your taxes is straightforward If it isn’t, then TaxJar could be a waste of expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to track all of it. Moreover, if you find the whole procedure simple to follow and you’re comfortable with it, you may be better off doing it on your own.
FAQ TaxJar And Fba
Which areas does TaxJar offer API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transactions are in US$. If you’re using a different currency, you’ll have to convert it to US$ prior to when TaxJar determines your tax.