Taxes have always been among the hardest things to do regardless of whether you run a business or not. Even more so if you do not have a degree in finance or accounting. Tax-related issues aren’t easy, particularly when you’re full of things to be done. When you’re not able to afford the budget to engage an accountant making it your own could be dangerous. If you make a mistake it could mean you need to repeat the process!
Nearly everyone would prefer to avoid this step. However, since it’s mandatory to be done, we can’t choose not to.
So , what is the best way to deal with it?
It is always possible to simplify our lives with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. Although this is quite a long read, you should be able to determine if TaxJar is the tool you require in the present.
Do you prefer watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
For those who like to read, we’ll dive right into.
What is TaxJar? TaxJar Calculating Tax Based On Shipping
Founded in 2013, TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculations. It’s a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of your sales channels to ensure that you are in compliance with sales taxes. It makes the process simpler that could take days to complete and can be completed in a matter of minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is used extensively by online business owners to keep everything simple and organized. Let’s explore their features and services.
Features and services
One of the most important things you’ll need to ensure is that your accounting tax software seamlessly works well with your sales channel. If you have multiple sales channels, you need to ensure that everything is in order. The most important thing is not to get a penalty for missing a single minor point.
TaxJar allows you to show your critical metrics in one place. This means that there is no requirement to collect information from multiple sources and sort it into one platform. All you have to do is integrate TaxJar, it will handle 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 are able to integrate with:
TaxJar allows customers to submit their sales tax manually or through the AutoFile feature. In our review we’ll take a look at both.
If you opt to go it alone, TaxJar will allow you to connect all your sales platforms. When it comes time to filing income tax returns, the team will instruct you on how to manage the tax returns. But, it is up to you and your team members to complete everything in time. TaxJar is there to help you understand what you should accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit the forms in a manual manner. With this feature, everything is automated, from calculating sales tax through recording, and then processing them. But, it is possible to incur additional charges if they are not included in the plan you select.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to assist you with your accounting woes. Your orders from your e-commerce channels can be compiled into a single dashboard via this platform. From there, you and your team will have access to all the information you need, like a list of your transactions, reports, and information.
The best part about the feature you’ve chosen is they allow you to update automatically every day. Not only can they help to know the amount you’ve collected however, they can also help you keep track of when the next payments are due.
Their dashboard also allows you to fully view the sales tax totals within your company. It is also possible to export the information in the form of a CSV file in case you require it for your process of financial planning and accounting or if your team needs it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all the sales avenues you use. It means you don’t need to hunt for your paperwork when you need them in the event of a need. Even even if you already have an accountant, this function will make them more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will help you plan your money more efficiently. You’ll know exactly how much budget you have for other operational expenses.
But what’s even better is that TaxJar provides training and tutorials, not just for their platform , but also all things related to sales tax. You can look through their webinars, guides, as well as their blog to find more information. In addition the sales tax calculator should be beneficial when 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. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. For this reason, we’ll look into TaxJar’s pricing tiers and what each of those 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 to help you with filing requirements or reporting. It comes with sales tax reporting, four annual AutoFiles for free, as well as an CSV import. Even with the starter plan, you have access to their AI tax advice.
If you’re a small-scale company owner, this plan could be perfect for you. It might not include all the features offered by TaxJar but it comes with the basic features you require.
You can also contact the support team via their email support chart. You’ll also have access to their integration features.
If you’re looking to get a bit more than just the basic features and options, then the Professional plan may be the best option for you. It’s priced at $99 but you can increase it when you add additional features.
What is the difference from the original plan?
In addition to accessing all of the Starter plan’s options, you also have access to their phone customer support Access to APIs, phone support, and advanced CSV import. You can also receive 12 free AutoFiles every year.
If you own a huge enterprise, you may want to opt for an upgrade instead. It includes all of the features that you require to make your tax filing easier. Moreover, they allow unlimited data import integrations, API integrations, team members as well as AutoFiles.
They also have a staff that is devoted for managing the account. However, they don’t disclose the amount that the Premium plan is going to cost. TaxJar Calculating Tax Based On Shipping
But they did state that this plan is tailor-fit to each user. Therefore, the cost will differ depending on what you need for your business.
Luckily, you don’t have to risk your money to find out if the platform is right for you. If you’re still considering various options, they provide a 30-day free trial. It should give you enough time to determine if the platform is an excellent fit for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar Let’s relax. To sum it all up, here are 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 save time
- Available in most USA states
- Provides on the internet for sales tax calculator
- 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
- It allows you to monitor multiple 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 for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies with many sales channels and utilizes many platforms. If this sounds like the way you’re doing, then you must try TaxJar.
Not only will it assist you in keeping track of your products and revenue however, it will help you meet the deadlines you set. This is also an excellent option for accountants as they have a 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 on top of each deadline and requirement you have to meet. If you’re living in a place with complicated tax laws, this can definitely help you get your mind around it. TaxJar Calculating Tax Based On Shipping
But if handling your taxes is simple, then TaxJar could be a waste of expense. If you have only one or two sales channels, TaxJar won’t be needed to keep track of all of it. If you find the whole procedure easy to complete then you’re better to do it on your own.
FAQ TaxJar Calculating Tax Based On Shipping
What are the areas in which TaxJar offer API assistance?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together with TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transaction amounts are n US$. If you’re using a different currency, you’ll need to convert it to US$ prior to when TaxJar will calculate your tax.