Taxes have always been among the most difficult things to handle regardless of whether you run a business or not. Even more so if you do not have any experience in accounting or finance. Tax-related work can be overwhelming, especially when you’re filled with tasks to complete. If you don’t have enough money to employ an accountant, doing it on yourself can be risky. If you make a mistake it could mean you need to repeat the process!
Most people want to avoid this step. But since it’s required to be done, we can’t choose not to.
What can we do ?
It is always possible to simplify our lives by using tools like TaxJar.
We’ll look at this life-saving tool and how it can benefit you. While this is lengthy but you’ll be able to gauge whether TaxJar is exactly what you need right now.
Do you prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar TaxJar Collecting Sales Tax On Amazon
Founded in 2013, TaxJar is a platform that helps automate your reporting, filings and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize 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 finish within 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 online business owners to make their business more organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Features and services
One of the first things you’ll want to check is your tax-reporting software is compatible in conjunction with the sales channels you use. If you have multiple sales channels, it is essential to maintain everything in line. The most important thing is not to get a penalty for overlooking just one minor detail.
TaxJar lets you display your critical metrics in one spot. This means that there is no need to collect data in multiple channels and sort it into a single 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 to assist with payment processing. Here’s a list highlighting the platforms they can integrate with:
TaxJar allows customers to make sales tax filings manually or through TaxJar’s AutoFile feature. For the purpose of this article, we’ll dig at both.
If you choose to go it alone, 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 how to manage these. However, it will be up for you and your staff to finish the tax returns on time. TaxJar will only help you understand what you need to do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out any forms manually. With this feature, everything will be automated, from calculating sales tax to recording and processing it. There could be additional charges if they are not included in the plan you select.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to help you with your accounting problems. The orders you place through your online channels can be compiled into one dashboard using this platform. Once you’re on the platform you and your team can access everything you need, such as the list of transactions, reports, and data.
The most appealing aspect of this option is the fact that it allows you to update automatically every day. Not only will they let you know how much you’ve collected and how much you’ve earned, but they also let you determine when your next payments are due.
Their dashboard also allows you to see the overall sales taxes for your business. It is also possible to export the data to the form of a CSV file if you need it in your financial planning and accounting processes or if you require it to run centralized reports.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the sales avenues you use. It means you don’t need to scramble for your documents when you’re when you’re in a pinch. Even if you already have your accountant, this feature will aid them in being more efficient.
Moreover, knowing the estimates for your sales tax in advance will help you plan your funds more effectively. You’ll be aware of the budget you have for other operational costs.
The best part is that TaxJar offers tutorials and training, not just for their platform but for anything that has to do with sales tax. Check out their webinars, guides and blog for more info. Apart from that the sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb capabilities, but they’re often too expensive for businesses. This is why in this section we’ll take a look at TaxJar’s pricing tiers and what each of those choices can provide you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan is priced at $19. The company claims that it’s the most suitable plan for you to help you with filing requirements and reporting. It also includes sales tax reporting, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you have access to their AI tax recommendations.
If you’re a smaller company manager, the plan should be perfect for you. It may not offer all the features of TaxJar, but it has the basic features you require.
You can also contact their customer support via their support chart for email. Additionally, you’ll 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 could be the one for you. The price starts at $99 but you can increase it if you add custom features.
What is the difference from the basic plan?
In addition to having access to each of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you have a massive enterprise, you may want to opt for premium plans instead. It comes with all the features you need to make your tax filing easier. Moreover, they allow unlimited import integrations of data as well as API integrations, team members and AutoFiles.
They also have a team that is devoted in managing your accounts. They don’t reveal the amount that the Premium plan costs you. TaxJar Collecting Sales Tax On Amazon
However, they did mention that this plan is tailor-fit for every user. Therefore, the cost will differ in line with what you require to run your business.
It’s a good thing that you don’t have to gamble your money just to see if this platform is right for you. If you’re still looking into various options, they provide 30 days of free trial. It should give you enough time to determine whether the software is an excellent fit for you.
Pros and Pros and
Now that we’ve covered all you must be aware of TaxJar let’s take a breather. In order to sum up the whole thing, here are the advantages and disadvantages of using TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms.
- Allows you to track multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only valid for USA customers
- Needs accountants and owners to check local legislation
The Final Verdict
With everything clearly laid down, TaxJar is an excellent platform for companies that have multiple sales channels and uses many platforms. If that’s what you’re doing, then you should try this.
It’s not just a way to aid in tracking your revenue and products however, it will help you meet the deadlines you set. It’s also an excellent option for accountants as they offer tax Advisor program. There are tips to follow and learn from their sessions regarding taxes via it.
Using TaxJar can allow you to save more time while keeping the track of each deadline or requirement you need to meet. If you live in an area with complex tax laws, this will certainly help you to get your mind around it. TaxJar Collecting Sales Tax On Amazon
If handling taxes is easy and straightforward, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to keep track of everything. If you’re finding the entire procedure easy to complete and you’re comfortable with it, you may be better to do it on your own.
FAQ TaxJar Collecting Sales Tax On Amazon
What areas does TaxJar offer API assistance?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify together with TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transaction amounts are n USdollars. If you’re using another currency, you’ll need to convert it to USdollars prior to when TaxJar will calculate the tax.