Taxes have always been one of the most difficult tasks to complete regardless of whether you’re running a business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related work aren’t easy, particularly when your whole day is full of things to be done. In the event that you do not have enough money to employ 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!
Most people want to skipping this step. But since it’s required to be done, we can’t choose not to.
What can we do about it?
We can simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can assist you. Although this is quite a long read it is possible to determine if TaxJar is what you need in the present.
Are you looking to watch videos 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, let’s dive right in.
What is TaxJar TaxJar Cash Versus Accrual
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 the entire life cycle. Additionally, you can use it across all of your channels of sales to ensure compliance with your sales taxes. It streamlines processes that take days to complete and can be completed in a matter of only a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage companies, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is widely used by owners of online businesses to make their business more neat and simple. Let’s look into the benefits and features of TaxJar.
Features and services
One of the most important things you’ll want to check you have a tax accounting system seamlessly works well along with sales funnels. If you’re selling through multiple channels, you must ensure that everything is in order. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to show your critical metrics in one spot. So, there’s no need to gather data in multiple channels and then organize it on one platform. All you have to do is connect TaxJar and the platform will handle all the rest.
Other than that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to submit their sales tax either manually or via the AutoFile feature. In our review we’ll look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. Once the time comes for the filing of income tax returns TaxJar will train you on how to manage these. But, it is up for you and your team members to complete the process on time. TaxJar will only provide guidance on what you need to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything is automated, from calculating sales taxes through recording, and then processing it. But, it is possible to incur additional costs if the feature is you do not include this feature in the plan you choose.
Sales Tax Reports
As I mentioned earlier it is possible to 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 everything you need, such as the list of transactions, reports, as well as the data.
The greatest benefit of this feature is that it allows you to update automatically every day. Not only can they help you know how much you’ve accumulated however, they can also help you keep track of when the next payments are due.
Their dashboard can also allow users to view in detail the overall sales taxes in your business. Additionally, you can export your data as the form of a CSV file, if you want to use it to aid in process of financial planning and accounting or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep the track of all the sales avenues you use. That means you won’t have to scramble for your documents whenever you’re when you’re in a pinch. Even even if you already have an accountant, this function can aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance can help you allocate your funds more effectively. You’ll be aware of the budget you have available for other operating costs.
The best part is that TaxJar offers training and tutorials and tutorials, not just for their platform but all things connected to sales tax. You can check out their guides, webinars, or blog posts for additional info. Apart from that, their sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Some platforms offer superb capabilities, but they’re often too costly for the business you run. This is why in this section we’ll take a look at TaxJar’s pricing levels and what each of those plans can offer. At present, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan costs $19. They say it’s the most effective plan if you need help in filing and reporting. It also includes taxes on sales and sales as well as four autofiles for free each year, and the option of a CSV import. Even with the basic plan, you will be able to access their AI tax tips.
If you’re a small-scale business proprietor, then this program could be perfect for you. It might not include all of TaxJar’s features however, it does include all the basics you require.
In addition, you can reach their support team with their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking for something a bit more than just the basic features Professional could be the one for you. It’s priced 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 get access to their phone customer support access to APIs, as well as advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you have a massive company, you may need to opt for premium plans instead. It includes all of the features that you require to aid in your tax preparation. In addition, they offer unlimited import integrations of data API integrationsfor team users as well as AutoFiles.
They also have a staff who are devoted in managing your accounts. But, they don’t divulge the amount that the Premium plan costs you. TaxJar Cash Versus Accrual
But they did state that this plan is tailor-fit for every user. Therefore, the cost will differ according to what you require for your company.
Fortunately, you don’t need to bet your life on it to see if this platform is for you. If you’re still considering other options, they have a 30-day free trial. This should be enough time to determine whether the software is a good fit for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar Let’s relax. To summarize we’ll go over the pros and cons of the use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features to reduce 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 is possible to integrate it with other platforms
- It allows you to monitor 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 check local legislation
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies with numerous sales channels, and that utilizes plenty of platforms. If that sounds like what you’re doing, then must try TaxJar.
It’s not just a way to aid in tracking your revenue and products It can also help you meet the deadlines you set. This is also an excellent platform for an accountant since they have the Tax Advisor program. You can get tips and get knowledge from their seminars regarding taxes via it.
The use of TaxJar can allow you to save more time while keeping on top of each deadline and obligation you have to fulfill. If you’re living in a place with complicated tax laws, this will surely help you wrap your head around the subject. TaxJar Cash Versus Accrual
If handling taxes is easy and straightforward, then TaxJar might not be a good investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to track all of it. Moreover, if you’re finding the entire procedure easy to complete then you’re better in doing it all on your own.
FAQ TaxJar Cash Versus Accrual
Which areas does TaxJar offer API assistance?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All of the transaction amounts are n US$. If you’re using a different currency, you’ll have to convert it to USUSD prior to when TaxJar can calculate your tax.