Taxes are always one of the most difficult things to handle regardless of whether you run your own business or not. More so if you don’t have a background in finance or accounting. Tax-related work aren’t easy, particularly when you’re packed with things to do. If you don’t have the budget to hire an accountant, making it your own could be dangerous. If you miss one detail it could mean you have to do it all over again!
Nearly everyone would prefer to avoid this step. But since it’s required, we have no choice.
So what is the best way to deal with it?
We can always simplify our lives by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and explain how it can help you. While this is an extensive read but you’ll be able to gauge whether TaxJar is what you need in the present.
Do you prefer video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar? TaxJar Canada
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. It’s a solution for the entire life cycle. Furthermore, you can utilize it across all your channels of sales to ensure compliance with your sales taxes. It simplifies the processes that require days to complete and is completed in just a few minutes.
TaxJar has been 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 take a look at the features and services offered by TaxJar.
Features and services
One of the most important things you’ll need to ensure you have a tax accounting software perfectly integrates with your sales channel. If you have multiple sales channels, you must keep everything in place. The last thing you want is to get a penalty for not paying attention to a minor thing.
TaxJar allows you to show your most important metrics in one spot. That way, there’s no need to gather data in multiple channels and organize it into one platform. All you need to do is integrate TaxJar then the system will do the rest.
Other than that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of platforms that they can connect with:
TaxJar allows customers to make sales tax filings manually or through their AutoFile feature. In the purpose of this article, we’ll take a look at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When it comes time to filing income tax returns TaxJar will train you on managing them. But, it is up for you and your staff to finish the tax returns in time. TaxJar will only provide guidance on what you need to do , but not to handle it.
If you’d 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 will be automated, from calculating sales tax through recording, and then processing it. But, it is possible to incur additional costs if the feature is not part of the plan you select.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to help you with your accounting issues. All orders made through your e-commerce channels can be combined into a single dashboard via this platform. From there, you and your team will have access to all the information you require, including a list of your transactions, reports, and the data.
The most appealing aspect of this feature is that they allow you to update your account automatically each day. They not only let you keep track of how much you’ve collected, but they also help you keep track of when the next payments are due.
Their dashboard also allows users to view in detail the total sales tax in your business. You can also export your data in a CSV file, if you want to use it to aid in accounting and financial planning processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar helps you organize and keep the track of all the channels you sell through. This means that you don’t have to hunt for your paperwork when you need them when you’re in a pinch. Even even if you already have an accounting firm, the feature will help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will allow you to allocate your funds more effectively. You’ll know better how much budget you have for other operating costs.
But what’s even better is that TaxJar offers tutorials and training not only on their platform, but all things related to sales tax. You can check out their guides, webinars, or blog posts for additional details. Apart from that their sales tax calculator should be helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb features, but they’re sometimes too costly for your business. For this reason we’ll examine TaxJar’s pricing structures and what each of these plans can offer. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They say it’s the most effective plan if you need help with filing requirements and reporting. It also includes taxes on sales and sales as well as 4 free yearly AutoFiles, and the option of a CSV import. Even with the basic plan, you can access their AI tax advice.
If you’re a small business manager, the plan should be ideal for you. It may not have all of TaxJar’s features however, it does include all the basics you require.
Additionally, you can contact their customer support via their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking for something different from the basic features Professional could be the one for you. It’s priced at $99 but it can go higher by adding custom features.
What is the difference from the original plan?
In addition to having access to every one of Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and the ability to do advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you run a large business, you might need to choose premium plans instead. It comes with all the features you need to help with your taxes. Additionally, they permit unlimited import integrations of data, API integrations, team users as well as AutoFiles.
There is also a team who are devoted in managing your accounts. However, they don’t disclose how much the Premium plan will cost you. TaxJar Canada
However, they did say that the plan is custom-made to each user. Therefore, the cost will differ according to what you require for your company.
It’s a good thing that you don’t have to bet your life on it to find out if the platform is the right one for you. If you’re still considering different options, they offer 30 days of free trial. It should give you enough time to gauge whether the service is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to know about TaxJar Let’s relax. In order to sum up the whole thing, here are the advantages and disadvantages of making use of TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features help 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
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only valid for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out TaxJar can be a great platform companies with many sales channels and utilizes many platforms. If that’s what you’re doing, then you must try TaxJar.
Not only can it aid in tracking your revenue and products, but it can help you meet the deadlines you set. It is also a great option for accountants as they have the Tax Advisor program. You can find tips and learn from their sessions about taxes through it.
The use of TaxJar can allow you to get more done while keeping the track of each deadline and requirement you have to meet. If you live in a place with complicated tax laws, this can certainly help you to get your head around it. TaxJar Canada
However, if managing taxes is easy, then TaxJar could be a waste of expense. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of everything. If you’re finding the entire procedure easy to complete then you’re better to do it on your own.
FAQ TaxJar Canada
What areas does TaxJar provide API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar to make it easier to monitor and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All transactions’ amounts are in US$. If you’re using another currency, you will need to convert it to USUSD before TaxJar will calculate your tax.