Taxes are always one of the most difficult tasks to complete, whether you’re running a business or not. Particularly if you don’t have a background in finance or accounting. Tax-related issues can be overwhelming, particularly when your whole day is full of things to be done. If you don’t have enough money to employ an accountant, performing the task on your own could be risky. If you overlook one thing, you might need to repeat the process!
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 make our lives easier by using tools like TaxJar.
This article will take a look at this 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 exactly what you need in the present.
Do you prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What exactly is TaxJar? TaxJar Collect Sales Tax
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your filings, reports, 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 ensure compliance with sales tax requirements. It streamlines processes that require days to complete and can be completed in a matter of just a few minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to make their business more simple and organized. Let’s take a look at the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to ensure is your tax-reporting software seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to maintain everything in line. The most important thing is not to get a penalty for missing a single minor point.
TaxJar allows you to display your key metrics in one place. So, there’s no need to gather data in multiple channels and then organize it on one platform. All you need to do is connect TaxJar, it will take care of the rest.
Other than that, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms they can integrate with:
TaxJar lets customers file their sales taxes by hand or using the AutoFile feature. For this review, we’ll dig into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When it comes time to filing income tax returns The team will guide you on managing these. But, it is up for you and your staff to complete the process in time. TaxJar is only there to guide you on what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out the forms in a manual manner. With this feature, everything will be automated, from calculating taxes on sales through recording, and then processing them. But, it is possible to incur additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. Once you’re on the platform, you and your team will have access to all the information you need, like the list of transactions, reports, as well as data.
The most appealing aspect of this option is the fact that it allows you to automatically update every day. They not only let you know how much you’ve earned however, they can also help you determine when your next payments are due.
Their dashboard also allows you to fully view the total sales tax in your business. You can also export the information in the form of a CSV file in case you require it for your accounting and financial planning processes or if your team needs it to run centralized reports.
Streamlining and Training
TaxJar helps you organize and keep track of all of the sales avenues you use. It means you don’t need to hunt for your paperwork whenever you’re in a pinch. Even if you already have your accounting firm, the feature can aid them in being more efficient.
Additionally, knowing the figures 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 for other operational costs.
The best part is that TaxJar provides training and tutorials and tutorials, not just on their platform, but everything that has to do with sales tax. You can check out their webinars, guides, or blog posts for additional information. Additionally their sales tax calculator should be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to set your budget. Some platforms provide amazing features, but they can be too expensive for businesses. For this reason we’ll take a look at TaxJar’s pricing tiers and the features that each of these options can offer you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. The company claims that it’s the most effective plan for those who need assistance with filing requirements and reporting. It includes sales tax reporting, four free yearly AutoFiles, and an CSV import. Even with the basic plan, you have access to their AI tax advice.
If you’re a small company owner, this plan could be ideal for you. It may not offer all the features of TaxJar however, it does include all the basics you require.
You can also contact the support team via their email support chart. Additionally, you’ll have access to their integration capabilities.
If you’re looking for different from the basic features and options, then the Professional plan might be the right one for you. It starts at $99, however, it could go up by adding custom features.
What is the difference from the original plan?
In addition to accessing each of Starter plan’s features, you also have the support of their customer service via phone Access to APIs, phone support, and the ability to do advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you have a massive enterprise, you may want to opt for premium plans instead. It includes all of the features needed to aid in your tax preparation. In addition, they offer unlimited data import integrations as well as Integrations with APIs, teams of members, and AutoFiles.
They also have a team dedicated for managing the account. They don’t reveal how much the Premium plan costs you. TaxJar Collect Sales Tax
However, they did say that this plan is tailor-fit for every user. So the costs will vary in line with what you require for your company.
Fortunately, you don’t need to gamble your money just to determine if this service is for you. If you’re still looking into other options, they have 30 days of free trial. This should give you enough time to gauge whether the service is the right choice for you.
Pros and Cons
After we’ve gone over everything you must know about TaxJar let’s take a break. To summarize, here are the pros and cons of using TaxJar for your company.
- There is the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is possible to integrate it with other platforms.
- Allows you to track multiple 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 applicable for USA customers.
- Owners and accountants should review local laws
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies with many sales channels and utilizes numerous platforms. If that sounds like what you’re doing, then you ought to try this.
Not only can it assist you in keeping track of your products and revenue, but it can assist you in meeting your deadlines. This is also an excellent option for accountants as they offer a Tax Advisor program. You can find 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 requirement you have to meet. If you live in a place with complicated tax regulations, this will surely help you wrap your head around it. TaxJar Collect Sales Tax
If handling your taxes is straightforward If it isn’t, then TaxJar may be an unnecessary expense. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of all of it. In addition, if you find the entire procedure easy to complete, you might be better to do it on your own.
FAQ TaxJar Collect Sales Tax
Which areas does TaxJar provide API assistance?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can connect your Shopify account to TaxJar to make it easier to monitor and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions’ amounts are in USdollars. If you’re using another currency, you’ll have to convert it to USUSD prior to when TaxJar will calculate your tax.