Taxes have always been among the hardest things to do, whether you’re running a business or not. More so if you don’t have a degree in finance or accounting. Tax-related tasks can be overwhelming, especially when you’re full of things to be done. If you don’t have the budget to hire an accountant, making it yourself can be dangerous. If you make a mistake it could mean you have to do it all over again!
Nearly everyone would prefer to avoid this step. However, since it’s mandatory, we have no choice.
So what can we do ?
We can simplify our lives by using tools like TaxJar.
We’ll look at this life-saving device and how it can assist you. While this is a long read, you should be able to gauge whether TaxJar is exactly what you need right now.
Are you looking watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What exactly is TaxJar? TaxJar Blog How To File
In 2013, TaxJar was established. TaxJar is a platform that helps automate your filings, reports, and sales tax calculation. It is a solution for your entire sales tax life cycle. Additionally, you can use it across all of your channels of sales to ensure that you are in compliance with sales tax requirements. It makes the process simpler that could can take days to complete, and can be completed in a matter of just a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is extensively used by online business owners to ensure that everything is neat and simple. Let’s take a look at the benefits and features of TaxJar.
Features and services
One of the first things you’ll want to check you have a tax accounting system is compatible in conjunction with the sales channels you use. If you have multiple sales channels, you need to maintain everything in line. The last thing you want is to get a penalty for not paying attention to a minor thing.
TaxJar allows you to display your most important metrics in one spot. That way, there’s no need to collect data in multiple channels and sort it into one platform. All you need to do is connect TaxJar and the platform will do the rest.
In addition, TaxJar also integrates with other platforms to assist with payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to submit their sales tax by hand or using the AutoFile feature. For this review, we’ll take a look at both.
If you choose to do it manually, TaxJar will allow you to connect all your sales platforms. When the time is right for the filing of income tax returns The team will guide you on managing these. It is up for you and your team to finish the tax returns in time. TaxJar will only provide guidance on what you have to accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit the forms in a manual manner. Through this feature, everything will be automated, from calculating taxes on sales to recording and processing them. However, there might be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting problems. Your orders from your e-commerce channels can be put together into a single dashboard through this platform. Once you’re on the platform, you and your team will have access to everything you require, including a list of your transactions, reports and data.
The best part about the feature you’ve chosen is it lets you to update your account automatically each day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you track when your following payment is due.
The dashboard allows you to fully view the total sales tax for your business. You can also export the information to a CSV file if you need it in your process of financial planning and accounting or if you require it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. That means you won’t have to hunt for your paperwork when you’re when you’re in a pinch. Even if you already have your accountant, this function can make them more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know better how much budget you have available for other operating expenses.
The best part is that TaxJar offers training and tutorials, not just for their platform but everything related to sales tax. Check out their webinars, guides and blog for more details. In addition their sales tax calculator can be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they can be too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing levels and what each of these plans can offer. At present, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan starts at $19. They say it’s the best plan for those who need assistance with filing requirements or reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as the option of a CSV import. With the starter plan, you have access to their AI tax advice.
If you’re a smaller business manager, the plan will be ideal for you. It might not include all the features offered by TaxJar, but it has all the basics you require.
Additionally, you can contact the support team via their email support chart. You’ll also have access to their integration features.
If you’re looking to get that is more than the basics, then the Professional plan may be the best option for you. The price starts at $99 but you can increase it if you add custom features.
What is the difference from the starter plan?
In addition to having access to every one of Starter plan’s features, you also get access to their phone customer support, API access, and the ability to do advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose premium plans instead. It has all of the features needed to aid in your tax preparation. Moreover, they allow unlimited import integrations of data as well as API integrationsfor team members and AutoFiles.
They also have a team who are devoted in managing your accounts. They don’t reveal how much the Premium plan is going to cost. TaxJar Blog How To File
However, they did mention that this plan is tailor-fit to each user. The cost of the plan will be different depending on what you need for your business.
Fortunately, you don’t need to gamble your money just to determine if this service is for you. If you’re still considering various options, they provide 30 days of free trial. This should be enough time to determine if the platform is a good fit for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar let’s take a break. To sum it all up Here are the pros and cons of making use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Has support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms.
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature
- Only applicable to USA customers.
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid down, TaxJar is an excellent platform for businesses with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then should try this.
Not only will it assist you in keeping track of the sales and profits of your business It can assist you in meeting the deadlines you set. It’s also an excellent opportunity for accountants since they provide tax Advisor program. You can find tips and learn from their sessions regarding taxes via it.
The use of TaxJar can help you get more done while keeping the track of each deadline and obligation you have to meet. If you’re in a region with a lot of tax regulations, this will certainly help you to get your head around the subject. TaxJar Blog How To File
But if handling taxes is easy and straightforward, then TaxJar could be a waste of expense. If you have only one or two channels for sales, TaxJar won’t be needed to track all of it. In addition, if you’re finding the entire process easy to do, you might be better to do it on your own.
FAQ TaxJar Blog How To File
What are the areas in which TaxJar provide API assistance?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I connect Shopify together with TaxJar?
Yes. You can sync your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions are in US$. If you’re using another currency, you’ll have to convert it to USUSD before TaxJar determines the tax.