Taxes have always been among the most difficult tasks to complete regardless of whether you’re running an enterprise or not. More so if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, especially when you’re full of things to be done. If you don’t have the budget to hire an accountant, doing it on your own can be risky. If you miss one detail it could mean you need to repeat the process!
Nearly everyone would prefer to skip this step. But since it’s required and mandatory, there’s no other choice.
So , what can we do about it?
It is always possible to simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and how it can benefit you. Although this is quite a long read it is possible to determine if TaxJar is exactly what you need right now.
Prefer 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, then let’s dive right in.
What is TaxJar? TaxJar Blog
The company was founded in 2013 TaxJar is a platform that helps automate your reporting, filings and sales tax calculations. It is a solution for the entire life cycle. In addition, you can apply it across all the sales channels you use to make sure you’re in compliance with sales taxes. It streamlines processes that take days to complete and finish within only a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to keep everything simple and organized. Let’s look into the benefits and features of TaxJar.
Services and features
One of the first things you’ll want to check is your tax-reporting software perfectly integrates in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to keep everything in place. The last thing you want is to get a penalty for overlooking just one minor detail.
TaxJar allows you to display your most important data in one location. So, there’s no need to gather data from different channels and organize it into one platform. All you need to do is to integrate TaxJar, it will do the rest.
In addition, TaxJar also integrates with other platforms that can help with payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar lets customers file their sales taxes manually or through TaxJar’s AutoFile feature. In the purpose of this article, we’ll look into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. Once the time comes for filing tax returns for income, the team will instruct you on how to manage them. It is up for you and your staff to complete the process within the timeframe. TaxJar will only provide guidance on what you need 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 any forms manually. Through this feature, everything will be automated from calculating sales tax through recording, and then processing them. But, it is possible to incur additional charges if they are not part of the plan you chose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be combined into one dashboard using this platform. From there you and your staff can access everything you need, such as an inventory of your transactions, reports and information.
The best part about this feature is that it allows you to update automatically every day. Not only can they help you know how much you’ve earned, but they also help you track when your following payments are due.
Their dashboard can also allow you to see the overall sales taxes within your company. You can also export your data to the form of a CSV file, if you want to use it to aid in financial planning and accounting processes or if you require it for central reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all your sales channels. That means you won’t have to scramble for your documents when you’re in the event of a need. Even if you already have your accountant, this feature will make them more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have available for other operating costs.
The best part is that TaxJar offers training and tutorials, not just for their platform but for anything related to sales tax. You can check out their guides, webinars, as well as their blog to find more details. Additionally the sales tax calculator should be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to determine your budget. Some platforms provide amazing features, but they can be too costly for your business. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of those choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. They claim that it’s the best plan for those who need assistance in filing and reporting. It also includes sales tax reporting, 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 small-scale business manager, the plan could be perfect for you. It may not offer all of TaxJar’s features however, it does include the basic features you require.
Additionally, you can contact their customer support via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking to get a bit more than just the basics Professional might be the right one for you. The price starts at $99 however, it could go up if you add custom features.
How different is it from the original plan?
Apart from having access to all of the Starter plan’s features, you also have their support via phone access to APIs, as well as the ability to do advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large business, you might need to opt for the Premium plan instead. It comes with all the features you need to aid in your tax preparation. Additionally, they permit unlimited data import integrations Integrations with APIs, teams of members and AutoFiles.
They also have a team that is devoted to managing your account. They don’t reveal the amount that the Premium plan will cost you. TaxJar Blog
But they did state that the plan is custom-made for each user. So the costs will vary according to what you require to run your business.
Luckily, you don’t have to risk your money to see if this platform is for you. If you’re still looking into different options, they offer 30 days of free trial. This should give you enough time to gauge if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to know about TaxJar let’s take a breather. To summarize Here are the pros and cons of the use of TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Provides Taxes on sales online calculator.
- Has support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms
- Allows you to track multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable for USA customers
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies that have multiple sales channels and uses many platforms. If that’s what you’re doing, then you ought to try this.
Not only will it assist you in keeping track of the sales and profits of your business It can also help you meet the deadlines you set. It’s also an excellent opportunity for accountants since they provide the Tax Advisor program. You can get tips and get knowledge from their seminars about taxes through it.
The use of TaxJar can help you save more time while keeping track of every deadline and obligation you have to meet. If you’re living in an area with complex tax regulations, this will surely help you wrap your mind around it. TaxJar Blog
If handling taxes is easy If it isn’t, then TaxJar may be an unnecessary expense. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. Moreover, if you find the entire procedure easy to complete then you’re better off doing it by yourself.
FAQ TaxJar Blog
Which areas does TaxJar offer API support?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transaction amounts are n US$. If you’re using another currency, you’ll need to convert it to USUSD prior to when TaxJar determines the tax.