Taxes have always been one of the most difficult tasks to complete regardless of whether you run your own business or not. Even more so if you do not have a background in finance or accounting. Tax-related issues can be overwhelming, especially when you’re full of things to be done. When you’re not able to afford enough money to employ an accountant, making it your own can be dangerous. If you make a mistake, you might have to do it all over again!
Almost everyone wants to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
So , what can we do ?
We can simplify our lives with tools such as TaxJar.
This article will take a look at this well-known life-saving tool and explain how it can benefit you. While this is a long read but you’ll be able to assess whether TaxJar is what you need today.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also give a complete review of the features offered by TaxJar.
For those who like to read, then let’s get right into it.
What is TaxJar? TaxJar And Square
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 all aspects of your sales tax cycle. Additionally, you can use it in all of your channels of sales to ensure compliance with sales taxes. It streamlines processes that take days to complete and is completed in just a few just a few minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is widely used by online business owners to make their business more neat and simple. Let’s explore their features and services.
Features and services
One of the most important things you’ll need to make sure you have a tax accounting system is compatible in conjunction with the sales channels you use. If you have multiple sales channels, it is essential to maintain everything in line. The final thing you would like is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to display your most important data in one location. So, there’s no need to gather data in multiple channels and sort it into a single platform. All you have to do is integrate TaxJar, then the system will do the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows clients to make sales tax filings manually or through the AutoFile feature. For our review we’ll dig into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. Once the time comes for filing tax returns for income The team will guide you on managing these. However, it will be up for you and your team to complete everything within the timeframe. TaxJar is only there to help you understand what you should do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out the forms in a manual manner. With this feature, everything is automated, from calculating taxes on sales in order to record and process them. However, there might be additional costs if the feature is not included in the plan you select.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to assist you with your accounting issues. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. From there you and your team will have access to everything you need, such as an inventory of your transactions, reports, as well as the data.
The most appealing aspect of this option is the fact that it lets you to update your account automatically each day. They not only let to know the amount you’ve accumulated however, they can also help you track when your following payments are due.
Their dashboard also allows users to view in detail the total sales tax in your business. You can also export the data to CSV format. CSV file if you need it for your accounting and financial planning processes or if your team requires it for central reporting.
Training and Streamlining
TaxJar helps organize and keep the track of all the sales avenues you use. This means that you don’t have to scramble for your documents when you need them in a pinch. Even if you already have your accountant, this feature will help them be more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds better. You’ll be aware of the budget you have available for other operating costs.
The best part is that TaxJar offers training and tutorials and tutorials, not just for their platform , but also everything related to sales tax. Check out their webinars, guides, as well as their blog to find more details. Additionally, their sales tax calculator should be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms offer superb features, but they’re sometimes too costly for the business you run. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of these choices can provide you. Currently, TaxJar offers three plans including 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 or reporting. It also includes the tax on sales, 4 autofiles for free each year, and the option of a CSV import. Even with the basic plan, you have access to their AI tax advice.
If you’re a smaller business proprietor, then this program could be ideal for you. It may not have all the features offered by TaxJar however, it does include all the basics you require.
You can also contact their customer support via their support chart for email. Additionally, you’ll have access to their integration tools.
If you’re looking to get that is more than the basics, then the Professional plan may be the best option for you. It’s priced at $99 but you can increase it by adding custom features.
So how different is it from the basic plan?
In addition to having access to all of the Starter plan’s features, you also get access to their support via phone Access to APIs, phone support, and advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you have a massive company, you may need to opt for premium plans instead. It includes all of the features needed to make your tax filing easier. Moreover, they allow unlimited integrations with data imports as well as API integrationsfor team users and AutoFiles.
They also have a staff dedicated to managing your account. But, they don’t divulge how much the Premium plan costs you. TaxJar And Square
However, they did say that this plan is customized for every user. Therefore, the cost will differ according to what you require to run your business.
It’s a good thing that you don’t have to bet your life on it to find out if the platform is right for you. If you’re still considering other options, they have a 30-day free trial. This should be enough time to gauge if the platform is the right choice for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar let’s take a breather. To summarize, here are the advantages and disadvantages of making use of TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides on the internet for sales tax calculator
- Support Service Team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable for USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies that have multiple sales channels and uses numerous platforms. If that’s what you’re doing, then ought to try this.
It’s not just a way to help you track the sales and profits of your business, but it can help you meet your deadlines. This is also an excellent opportunity for accountants since they provide tax Advisor program. You can find tips and get knowledge from their seminars about taxes through it.
The use of TaxJar can help you save more time while keeping the track of each 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 it. TaxJar And Square
If handling your taxes is simple If it isn’t, then TaxJar could be a waste of investment. If you only have one or two channels for sales, TaxJar won’t be needed to keep track of all of it. Moreover, if you find the entire procedure simple to follow and you’re comfortable with it, you may be better off doing it on your own.
FAQ TaxJar And Square
Which areas does TaxJar offer API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I integrate Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All transactions’ amounts are in USdollars. If you’re using a different currency, you’ll need to convert it to USdollars prior to when TaxJar determines the tax.