Taxes have always been one of the most difficult things to handle regardless of whether you run an enterprise or not. More so if you don’t have any experience in finance or accounting. Tax-related work aren’t easy, particularly when you’re filled with tasks to complete. When you’re not able to afford enough money to employ an accountant, doing it on your own can be dangerous. If you overlook one thing it could mean you need to repeat the process!
Most people want to avoid this step. But since it’s required to be done, we can’t choose not to.
What can we do ?
We can make life easier by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and explain how it can benefit you. While this is an extensive read but you’ll be able to assess whether TaxJar is the tool you require today.
Prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
For those who like to read, let’s get right into it.
What exactly is TaxJar? TaxJar And Taxcloud Shopify Which Is Better
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculations. It’s a solution for the entire life cycle. In addition, you can apply it across all the sales channels you use to ensure compliance with your sales taxes. It makes the process simpler that could can take days to complete, and finish within only a few minutes.
TaxJar is used in a variety of industries, including food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by owners of online businesses to keep everything neat and simple. Let’s explore the benefits and features of TaxJar.
Services and features
One of the first things you’ll want to check you have a tax accounting platform perfectly integrates along with sales funnels. If you’re using multiple sales channels, it is essential to ensure that everything is in order. The most important thing is not to get a penalty for overlooking just one minor detail.
TaxJar allows you to show your most important data in one location. This means that there is no need to collect data in multiple channels and then organize it on a single platform. All you have to do is connect TaxJar, then the system will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list highlighting the platforms they can integrate with:
TaxJar lets customers submit their sales tax manually or through TaxJar’s AutoFile feature. For our review we’ll dig at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When it comes time to the filing of income tax returns TaxJar will train you on how to handle these. But, it is up for you and your staff to finish the tax returns on time. TaxJar is only there to guide you on what you should accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything is automated, from calculating sales tax in order to record and process them. There could be additional charges if they are not included in the plan you chose.
Sales Tax Reports
As we mentioned, you can use TaxJar to help you with your accounting problems. The orders you place through your online channels can be compiled into a single dashboard via 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 the data.
The greatest benefit of this option is the fact that it lets you to update automatically every day. They not only let you keep track of how much you’ve collected, but they also help you determine when your next payments are due.
Their dashboard can also allow users to view in detail the overall sales taxes in your business. It is also possible to export the information as CSV format. CSV file if you need it in your financial planning and accounting processes or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of your sales channels. This means that you don’t have to search 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 the sales tax you pay in advance will help you plan your money more efficiently. You’ll know exactly how much budget you have for other operating expenses.
What’s more is that TaxJar offers tutorials and training and tutorials, not just on their platform, but for anything related to sales tax. Check out their guides, webinars, or blog posts for additional information. In addition their sales tax calculator should be helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to set your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. This is why in this section we’ll take a look at TaxJar’s pricing levels and what each of those options can offer you. At present, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the most effective plan to help you in filing and reporting. It also includes sales tax reporting, 4 free yearly AutoFiles, and a CSV import. Even with the starter plan, you will be able to access their AI tax advice.
If you’re a small-scale business manager, the plan will be perfect for you. It may not offer all the features of TaxJar, but it has all the basics you require.
You can also contact their support team with their email support chart. You’ll also have access to their integration features.
If you’re looking for different from the basics and options, then the Professional plan might be the right one for you. The price starts at $99 however, it could go up if you add custom features.
So how different is it from the basic plan?
In addition to accessing every one of Starter plan’s features, you also have their phone customer support access to APIs, as well as the ability to do advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose the Premium plan instead. It includes all of the features needed to aid in your tax preparation. In addition, they offer unlimited data import integrations, API integrations, team users and AutoFiles.
They also have a team who are devoted to managing your account. However, they don’t disclose the price of the Premium plan. will cost you. TaxJar And Taxcloud Shopify Which Is Better
However, they did say that this plan is tailor-fit to each user. Therefore, the cost will differ according to what you require for your company.
It’s a good thing that you don’t have to gamble your money just to find out if the platform is the right one for you. If you’re still looking into different options, they offer a 30-day free trial. This should be enough time to gauge whether the software is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to be aware of TaxJar let’s take a breather. To sum it all up we’ll go over the pros and cons of using TaxJar to run your business.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Has support service team
- The dashboard is easy 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 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 check local legislation
The Final Verdict
With everything laid down, TaxJar can be a great platform businesses with many sales channels and utilizes numerous platforms. If this sounds like the way you do, then you should try this.
Not only can it assist you in keeping track of your revenue and products however, it will also help you meet the deadlines you set. This is also an excellent option for accountants as they have a Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar will help you get more done while keeping on top of each deadline and obligation you have to fulfill. If you live in a region with a lot of tax regulations, this will certainly help you to get your head around it. TaxJar And Taxcloud Shopify Which Is Better
However, if managing taxes is easy, then TaxJar might not be a good expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to keep track of all of it. If you’re finding the entire procedure simple to follow then you’re better off doing it on your own.
FAQ TaxJar And Taxcloud Shopify Which Is Better
Which areas does TaxJar provide API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. The transactions are in US$. If you’re using a different currency, you will need to convert it into USUSD before TaxJar will calculate your tax.