Taxes have always been among the most difficult tasks to complete, whether you’re running your own business or not. More so if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, particularly when you’re full of things to be done. If you don’t have the funds to hire an accountant, performing the task on yourself can be risky. If you overlook one thing and you don’t know it, you may have to redo things again!
Most people want to skip this step. However, since it’s mandatory and mandatory, there’s no other choice.
What can we do ?
We can always make life easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving device and how it can help you. Although this is quite a long read but you’ll be able to gauge whether TaxJar is the tool you require today.
Are you looking video streaming 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 exactly is TaxJar? TaxJar By State
The company was founded in 2013 TaxJar is a platform that helps automate your reporting, filings and sales tax calculations. TaxJar is a solution to the entire life cycle. In addition, you can apply it in all of your channels of sales to make sure you’re in compliance with sales taxes. It simplifies the processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar has been used in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is widely used by business owners who run online businesses to ensure that everything is neat and simple. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to ensure is your tax-reporting platform is compatible with your sales channel. If you’re selling through multiple channels, it is essential to maintain everything in line. The final thing you would like is to face a penalty due to missing a single minor point.
TaxJar allows you to show your most important metrics in one place. This means that there is no requirement to collect data from different channels and sort it into one platform. All you have to do is integrate TaxJar and the platform will take care of all the rest.
Apart from that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to submit their sales tax manually or through their AutoFile feature. For the purpose of this article, we’ll dig at both.
If you decide to go it alone, TaxJar will allow you to connect all of your sales platforms. When the time is right for filing tax returns for income, the team will instruct you on managing them. But, it is up for you and your staff to complete the process within the timeframe. TaxJar is only 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 for you. This means that you don’t have to submit the forms in a manual manner. With this feature, everything will be automated, from calculating sales taxes to recording and processing it. However, there might be additional charges if they are not part of the plan you choose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to assist you with your accounting woes. Your orders from your e-commerce channels can be combined into a single dashboard through this platform. Once you’re on the platform, you and your team can access everything you need, like a list of your transactions, reports, as well as information.
The best part about this feature is that they allow you to update automatically every day. Not only can they help you know how much you’ve collected and how much you’ve earned, but they also let you keep track of when the next payments are due.
The dashboard allows you to fully view the total sales tax within your company. You can also export your data in a CSV file, if you want to use it in your accounting and financial planning processes or if you require it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all your sales channels. This means that you don’t have to hunt for your paperwork when you’re when you’re in a pinch. Even if you already have your accountant, this feature can aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will allow you to allocate your funds more effectively. You’ll be aware of the budget you have available for other operational costs.
The best part is that TaxJar offers training and tutorials, not just for their platform but all things that has to do with sales tax. You can look through their webinars, guides as well as their blog to find more info. In addition their sales tax calculator can be beneficial when you’re planning to take on the entire task 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 look into TaxJar’s pricing levels and what each of these options can offer you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan is priced at $19. They say it’s the most suitable plan for you for those who need assistance with filing requirements and reporting. It comes with taxes on sales and sales as well as four autofiles for free each year, and a CSV import. Even with the starter plan, you can access their AI tax recommendations.
If you’re a small-scale company owner, this plan should be perfect for you. It may not offer all of TaxJar’s features however, it does include the basic features you require.
In addition, you can reach their customer support via their support chart for email. You’ll also have access to their integration features.
If you’re looking for different from the basics, then the Professional plan could be the one for you. It starts at $99, but you can increase it if you add custom features.
How different is it from the original plan?
In addition to accessing each of Starter plan’s features, you also get access to their phone customer support access to APIs, as well as sophisticated CSV import. They also allow you to get 12 AutoFiles for free each year.
If you own a huge business, you might need to opt for the Premium plan instead. It includes all of the features that you require to make your tax filing easier. In addition, they offer unlimited data import integrations Integrations with APIs, teams of members, and AutoFiles.
They also have a staff who are devoted to managing your account. However, they don’t disclose the price of the Premium plan. will cost you. TaxJar By State
But they did state that the plan is custom-made for each user. So the costs will vary in line with what you require for your company.
It’s a good thing that you don’t have to risk your money to determine if this service is the right one for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to determine whether the service is a good fit for you.
Pros and Cons
After we’ve gone over everything you should be aware of TaxJar let’s take a breather. To sum it all up we’ll go over the pros and cons of the use of TaxJar for your company.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers an online sales tax calculator.
- Has 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.
- Allows you to track multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only valid for USA customers
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything clearly laid down, TaxJar provides a fantastic platform to companies with multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then ought to try this.
It’s not just a way to help you track your products and revenue It can also help you meet your deadlines. It’s also an excellent option for accountants as they offer the Tax Advisor program. There are tips to follow and get knowledge from their seminars regarding taxes via it.
The use of TaxJar can help you reduce time and keep track of every deadline or requirement you need to meet. If you live in an area with complex tax laws, this can surely help you wrap your head around it. TaxJar By State
If handling your taxes is straightforward and straightforward, then TaxJar may be an unnecessary investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you’re finding the entire process easy to do and you’re comfortable with it, you may be better off doing it by yourself.
FAQ TaxJar By State
What 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 with TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All of the transactions are in US$. If you’re using a different currency, you’ll have to convert it into US$ prior to when TaxJar will calculate the tax.