Taxes are always one of the hardest things to do, whether you’re running an enterprise or not. Particularly if you don’t have a background in finance or accounting. Tax-related issues can be overwhelming, especially when you’re packed with things to do. If you don’t have the funds to engage an accountant performing the task on yourself can be dangerous. If you make a mistake, you might 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.
What is the best way to deal with it?
It is always possible to make life easier by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can help you. While this is a long read but you’ll be able to gauge whether TaxJar is exactly what you need today.
Do you prefer to watch videos instead? Check out 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, then let’s dive right in.
What is TaxJar? TaxJar City Tax
The company was 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 all aspects of your sales tax cycle. Additionally, you can use it across all your channels of sales to ensure compliance with sales taxes. It makes the process simpler that could can take days to complete, and can be completed in a matter of just a few minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is widely used by owners of online businesses to ensure that everything is simple and organized. Let’s take a look at the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to make sure is that your accounting tax system seamlessly works well in conjunction with the sales channels you use. If you’re using multiple sales channels, you need to ensure that everything is in order. The most important thing is not to face a penalty due to overlooking just one minor detail.
TaxJar allows you to display your most important metrics in one place. So, there’s no need to collect data from different channels and then organize it on a single platform. All you have to do is integrate TaxJar, then the system will do 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 platforms they are able to integrate with:
TaxJar allows customers to make sales tax filings manually or through TaxJar’s AutoFile feature. For our review we’ll dig into both.
If you choose to do it manually, TaxJar will allow you to connect all of those sales tools. When it comes time to the filing of income tax returns The team will guide you on managing the tax returns. But, it is up to you and your team to complete the process in time. TaxJar is there to 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 won’t need to fill out the forms in a manual manner. Through this feature, everything is automated, from calculating taxes on sales through recording, and then processing it. But, it is possible to incur additional costs if the feature is not included in the plan you select.
Sales Tax Reports
As we mentioned, you can use TaxJar to ease your accounting woes. Your orders from 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 the list of transactions, reports, as well as data.
The best part about the feature you’ve chosen is it allows you to update automatically every day. Not only can they help to know the amount you’ve accumulated however, they can also help you determine when your next payments are due.
Their dashboard can also allow you to see the total sales tax within your company. Additionally, you can export the data to CSV format. CSV file in case you require it to aid in process of financial planning and accounting or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all the channels you sell through. It means you don’t need to scramble for your documents when you’re in the event of a need. Even if you already have your accountant, this feature can help them be more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will help you plan your funds better. You’ll be aware of the budget you have for other operational costs.
The best part is that TaxJar provides training and tutorials not only on their platform, but for anything related to sales tax. You can check out their webinars, guides, as well as their blog to find more information. Apart from that, their sales tax calculator should be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to establish your budget. Some platforms offer superb capabilities, but they’re often too costly for your business. This is why in this section we’ll examine TaxJar’s pricing tiers and what each of those plans can offer. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the most suitable plan for you to help you with filing requirements or reporting. It comes with taxes on sales and sales as well as 4 autofiles for free each year, and an CSV import. Even with the basic plan, you can access their AI tax tips.
If you’re a small company owner, this plan could be perfect for you. It may not offer all of TaxJar’s features however, it does include the essentials that you need.
You can also contact their support team with their email support chart. You’ll also have access to their integration capabilities.
If you’re looking for something 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 however, it could go up by adding custom features.
So how different is it from the original plan?
In addition to having access to every one of Starter plan’s features, you also get access to their support via phone access to APIs, as well as the ability to do advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you have a massive business, you might need to opt for premium plans instead. It comes with all the features needed to aid in your tax preparation. In addition, they offer unlimited integrations with data imports API integrationsfor team users as well as AutoFiles.
They also have a team who are devoted in managing your accounts. However, they don’t disclose the amount that the Premium plan is going to cost. TaxJar City Tax
However, they did say that this plan is customized to each user. Therefore, the cost will differ according to what you require for your company.
Luckily, you don’t have to bet your life on it to find out if the platform is for you. If you’re still considering other options, they have a 30-day free trial. It should give you enough time to see whether the service is a good fit for you.
Pros and Pros and
We’ve covered everything you must know about TaxJar let’s take a breather. In order to sum up the whole thing we’ll go over the advantages and disadvantages of the use of TaxJar for your business.
- Has a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides an online sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is able to 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 have access to the API feature
- Only valid for USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then you should try this.
Not only can it aid in tracking your products and revenue however, it will assist you in meeting the deadlines you set. It’s also an excellent platform for an accountant since they provide a Tax Advisor program. You can find tips and gain knowledge from their workshops regarding taxes via it.
Utilizing TaxJar will help you reduce time and keep track of every deadline and obligation you have to meet. If you’re in an area with complex tax laws, this can certainly help you to get your head around the subject. TaxJar City Tax
But if handling taxes is easy and straightforward, then TaxJar might not be a good expense. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of everything. In addition, if you find the entire procedure simple to follow then you’re better to do it on your own.
FAQ TaxJar City Tax
What areas does TaxJar offer API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions’ amounts are in USdollars. If you’re using a different currency, you’ll need to convert it into USUSD before TaxJar determines your tax.