Taxes have always been among the most difficult tasks to complete regardless of whether you’re running an enterprise or not. Particularly if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, particularly when your whole day is packed with things to do. If you don’t have the budget to engage an accountant performing the task on yourself can be dangerous. If you miss one detail it could mean you have to redo things again!
Nearly everyone would prefer to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
What is the best way to deal with it?
We can make life easier 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. While this is an extensive read but you’ll be able to gauge whether TaxJar is the tool you require right now.
Do you prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What is TaxJar TaxJar Api Docs
The company was founded in 2013 TaxJar is an application that automatizes your reporting, filings and sales tax calculations. It’s a solution for your entire sales tax life cycle. Additionally, you can use it across all your sales channels to ensure compliance with sales taxes. It makes the process simpler that could take days to complete and can be completed in a matter of just a few minutes.
TaxJar has been used in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is used extensively by business owners who run online businesses to make their business more neat and simple. Let’s look into the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to ensure you have a tax accounting platform is compatible in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to ensure that everything is in order. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to display your critical metrics in one place. This means that there is no need to collect data from different channels and sort it into one platform. All you have to do is connect TaxJar, then the system will handle the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to file their sales taxes manually or through their AutoFile feature. In our review we’ll take a look into both.
If you choose to go it alone, TaxJar will allow you to connect all of your sales platforms. Once the time comes for filing tax returns for income The team will guide you on managing the tax returns. It is up to you and your team to finish the tax returns within the timeframe. TaxJar is there to provide guidance on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out all forms by hand. With this feature, everything is automated, from calculating sales taxes to recording and processing them. There could be additional costs if the feature is not included in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to help you with your accounting problems. Your orders from your e-commerce channels can be compiled into one dashboard using this platform. From there you and your staff will have access to everything you require, including an inventory of your transactions, reports, as well as information.
The best part about the feature you’ve chosen is it allows you to update your account automatically each day. They not only let you know how much you’ve collected and how much you’ve earned, but they also let you track when your following payments are due.
Their dashboard also allows you to see the overall sales taxes in your business. It is also possible to export your data in the form of a CSV file, if you want to use it to aid in process of financial planning and accounting or if your team requires it for centralized reporting.
Training and Streamlining
TaxJar helps you organize and keep the track of all your sales channels. It means you don’t need to search for your documents whenever you’re in a pinch. Even if you already have your accounting firm, the feature can help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will help you plan your funds better. You’ll know exactly how much budget you have to cover other operational costs.
But what’s even better is that TaxJar offers training and tutorials, not just on their platform, but everything related to sales tax. You can check out their webinars, guides, or blog posts for additional info. Apart from that, their sales tax calculator should be beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to establish your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and what each of those choices can provide you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. The company claims that it’s the most suitable plan for you for those who need assistance 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. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a small-scale company manager, the plan will be ideal for you. It might not include all the features of TaxJar, but it has the essentials that you need.
In addition, you can reach their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking to get different from the basic features and options, then the Professional plan might be the right one for you. The price starts at $99 but it can go higher by adding custom features.
What is the difference from the original plan?
In addition to having access to every one of Starter plan’s options, you also have access to their support via phone access to APIs, as well as the ability to do advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you own a huge enterprise, you may want to choose premium plans instead. It comes with all the features you need to make your tax filing easier. Additionally, they permit unlimited integrations with data imports API integrationsfor team members, and AutoFiles.
There is also a team dedicated in managing your accounts. They don’t reveal how much the Premium plan costs you. TaxJar Api Docs
But they did state that this plan is customized for each user. The cost of the plan will be different according to what you require to run your business.
Luckily, 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 the opportunity to try a free trial for 30 days. This should be enough time to gauge whether the service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you must be aware of TaxJar let’s take a breather. To sum it all up, here are the pros and cons of the use of TaxJar for your company.
- There is the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Support service team
- The dashboard is easy 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
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers.
- Owners and accountants should review local laws
The Final Verdict
With everything laid out TaxJar can be a great platform companies that have multiple sales channels and uses plenty of platforms. If that sounds like what you’re doing, then you should try this.
Not only can it aid in tracking the sales and profits of your business however, it will assist you in meeting the deadlines you set. This is also an excellent opportunity for accountants since they have the Tax Advisor program. You can find tips and learn from their sessions about taxes through it.
Using TaxJar will help you save more time while keeping the track of each deadline or requirement you need to meet. If you live in a region with a lot of tax laws, this will surely help you wrap your head around it. TaxJar Api Docs
But if handling your taxes is simple If it isn’t, then TaxJar may be an unnecessary investment. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of everything. If you’re finding the entire procedure easy to complete then you’re better off doing it on your own.
FAQ TaxJar Api Docs
Which areas does TaxJar offer API assistance?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I 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 using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions are in USdollars. If you’re using another currency, you’ll have to convert it to USdollars before TaxJar can calculate your tax.