Taxes are always one of the hardest things to do regardless of whether you’re running a business or not. Particularly if you don’t have a background in accounting or finance. Tax-related work aren’t easy, particularly when you’re full of things to be done. When you’re not able to afford the funds to engage an accountant performing the task on your own could be dangerous. If you miss one detail, you might need to repeat the process!
Nearly everyone would prefer to avoid this step. But , as it’s a requirement, we have no choice.
So what is the best way to deal with it?
We can make life easier with tools such as TaxJar.
We’ll look at this life-saving tool and how it can help you. Even though this is a long read it is possible to determine if TaxJar is the tool you require right now.
Prefer to watch videos 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, we’ll dive right into.
What is TaxJar? TaxJar Auto File
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reports, filings, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of the sales channels you use to ensure that you are in compliance with your sales taxes. It makes the process simpler that could require days to complete and can be completed in a matter of minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by owners of online businesses to make their business more simple and organized. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to make sure is that your accounting tax software perfectly integrates with your sales channel. If you’re selling through multiple channels, it is essential to ensure that everything is in order. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar allows you to display your critical metrics in one place. That way, there’s no need to collect data from different channels and then organize it on one platform. All you have to do is integrate TaxJar, and the platform will do all the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms that they can connect with:
TaxJar allows customers to make sales tax filings either manually or via their AutoFile feature. For our review we’ll look at both.
If you opt to do it manually, TaxJar will allow you to connect all your sales platforms. Once the time comes for filing income tax returns TaxJar will train you on how to manage them. But, it is up to you and your team members to finish the tax returns within the timeframe. TaxJar is 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 all forms by hand. This feature will ensure that everything will be automated, from calculating sales tax to recording and processing them. There could be extra fees if not part of the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting problems. The orders you place through your online channels can be combined into a single dashboard via this platform. From there, you and your team can access everything you need, like an inventory of your transactions, reports, as well as data.
The best part about this feature is that it lets you to automatically update every day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you determine when your next payment is due.
The dashboard allows you to see the total sales tax for your business. It is also possible to export the data in the form of a CSV file if you need it for your financial planning and accounting processes or if your team needs it for centralized reporting.
Training and Streamlining
TaxJar helps you organize and keep track of all of the sales avenues you use. This means that you don’t have to search for your documents when you need them in a pinch. Even when you already have your accounting firm, the feature can make them more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will help you plan your money more efficiently. You’ll be aware of the budget you have for other operating costs.
What’s more is that TaxJar offers training and tutorials, not just for their platform but everything that has to do with sales tax. Check out their webinars, guides, as well as their blog to find more information. Additionally the sales tax calculator can be helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms provide amazing 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 levels and what each of those choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the most suitable plan for you to help you with filing requirements or reporting. It comes with the tax on sales, four autofiles for free each year, and a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a smaller business manager, the plan will be perfect for you. It might not include all the features of TaxJar, but it has the basic features you require.
Additionally, you can contact the support team via their support chart for email. You’ll also have access to their integration tools.
If you’re looking for different from the basic features and options, then the Professional plan may be the best option for you. It starts at $99, but you can increase it by adding custom features.
How different is it from the starter plan?
In addition to accessing each 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. You can also get 12 AutoFiles for free each year.
If you have a massive company, you may need to opt for an upgrade instead. It comes with all the features that you require to help with your taxes. Moreover, they allow unlimited import integrations of data as well as API integrations, team members as well as AutoFiles.
There is also a team who are devoted for managing the account. However, they don’t disclose the amount that the Premium plan will cost you. TaxJar Auto File
But they did state that this plan is tailor-fit for every user. So the costs will vary depending on what you need to run your business.
It’s a good thing that you don’t have to gamble your money just to determine if this service is for you. If you’re still looking into various options, they provide a 30-day free trial. It should give you enough time to gauge whether the software is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to be aware of TaxJar let’s take a break. To summarize Here are the advantages and disadvantages of the use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms.
- Allows you to track multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only valid for USA customers.
- Owners and accountants should recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes plenty of platforms. If that’s what you’re doing, then ought to try this.
It’s not just a way to help you track your products and revenue however, it will assist you in meeting the deadlines you set. It’s also an excellent platform for an accountant since they offer a Tax Advisor program. There are tips to follow and gain knowledge from their workshops on taxes by using it.
Utilizing TaxJar will help you save more time while keeping track of every deadline and requirement you have to fulfill. If you live in a region with a lot of tax laws, this will definitely help you get your head around the subject. TaxJar Auto File
However, if managing your taxes is simple If it isn’t, then TaxJar might not be a good investment. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. If you find the whole procedure easy to complete then you’re better in doing it all by yourself.
FAQ TaxJar Auto File
What areas does TaxJar offer API assistance?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions are in US$. If you’re using another currency, you’ll need to convert it into US$ prior to when TaxJar can calculate your tax.