Taxes are always one of the most difficult things to handle regardless of whether you run your own business or not. Particularly if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, particularly when your whole day is filled with tasks to complete. When you’re not able to afford the funds to hire an accountant, doing it on your own can be risky. If you make a mistake it could mean you have to do it all over again!
Almost everyone wants to skip this step. But , as it’s a requirement to be done, we can’t choose not to.
So what can we do ?
We can always make life easier by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and how it can assist you. Although this is quite lengthy but you’ll be able to determine if TaxJar is what you need today.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, let’s get right into it.
What is TaxJar TaxJar Competition
The company was founded in 2013 TaxJar is a platform that helps automate your reports, filings, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it in all of your sales channels to ensure that you are in compliance with sales taxes. It simplifies the processes that can take days to complete, and finish within only a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is extensively used by business owners who run online businesses to keep everything neat and simple. Let’s explore their features and services.
Services and features
One of the first things you’ll need to ensure is your tax-reporting platform perfectly integrates with your sales channel. If you’re using multiple sales channels, it is essential to keep everything in place. The final thing you would like is to get a penalty for not paying attention to a minor thing.
TaxJar lets you display your critical data in one location. This means that there is no need to gather information from multiple sources and sort it into one platform. All you have to do is to integrate TaxJar and the platform will handle the rest.
In addition, 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 by hand or using the AutoFile feature. In this review, we’ll dig into both.
If you decide to go it alone, TaxJar will allow you to connect those sales tools. Once the time comes for filing tax returns for income TaxJar will train you on how to handle the tax returns. However, it will be up to you and your staff to finish the tax returns on time. TaxJar will only help you understand what you should do but not handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out all forms by hand. With this feature, everything will be automated from calculating sales taxes through recording, and then processing them. However, there might be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be combined into one dashboard using this platform. From there you and your team can access everything you need, such as the list of transactions, reports and the data.
The greatest benefit of this option is the fact that it lets you to update automatically every day. Not only can they help you know how much you’ve earned and how much you’ve earned, but they also let you determine when your next payments are due.
The dashboard allows users to view in detail the overall sales taxes in your business. You can also export your data as CSV format. CSV file in case you require it for your accounting and financial planning processes or if you require it for central reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all your sales channels. It means you don’t need to hunt for your paperwork whenever you’re in the event of a need. Even even if you already have an accountant, this function can 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 exactly how much budget you have available for other operational costs.
What’s more is that TaxJar offers tutorials and training not only for their platform but for anything related to sales tax. You can check out their webinars, guides as well as their blog to find more details. In addition their sales tax calculator should be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to establish your budget. Certain platforms have amazing capabilities, but they’re often too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing tiers and the features that each of these plans can offer. At present, TaxJar offers three plans that are: 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 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 tips.
If you’re a smaller business owner, this plan could be perfect for you. It might not include all of TaxJar’s features however, it does include the basic features you require.
In addition, you can reach their customer support via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for that is more than the standard features Professional might be the right one for you. It starts at $99, but you can increase it by adding custom features.
So how different is it from the starter plan?
Apart from having access to each of Starter plan’s options, you also have access to the support of their customer service via phone access to APIs, as well as advanced CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive enterprise, you may want to opt for an upgrade instead. It has all of the features that you require to help with your taxes. Additionally, they permit unlimited data import integrations Integrations with APIs, teams of users as well as AutoFiles.
They also have a team that is devoted to managing your account. They don’t reveal how much the Premium plan will cost you. TaxJar Competition
However, they did mention that this plan is tailor-fit for every user. So the costs will vary according to what you require to run your business.
Luckily, you don’t have to gamble your money just to find out if the platform is right 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 service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to know about TaxJar let’s take a breather. To summarize Here are the advantages and disadvantages of making use of TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers an online 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.
- It allows you to monitor 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 to USA customers.
- Owners and accountants should check local legislation
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to businesses with numerous sales channels, and that utilizes many platforms. If that sounds like what you’re doing, then you should try this.
Not only can it help you track your products and revenue It can help you meet the deadlines you set. It is also a great platform for an accountant since they provide tax Advisor program. There are tips to follow and gain knowledge from their workshops about taxes through it.
Utilizing TaxJar can 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 definitely help you get your head around the subject. TaxJar Competition
However, if managing your taxes is straightforward If it isn’t, 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 all of it. In addition, if you find the whole procedure easy to complete then you’re better to do it on your own.
FAQ TaxJar Competition
What areas does TaxJar provide API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transactions are in USdollars. If you’re using a different currency, you will need to convert it to US$ prior to when TaxJar will calculate your tax.