Taxes have always been one of the most difficult things to handle regardless of whether you’re running an enterprise or not. Particularly if you don’t have a degree in accounting or finance. Tax-related work aren’t easy, particularly when your whole day is packed with things to do. If you don’t have the budget to engage an accountant performing the task on your own can be dangerous. If you overlook one thing and you don’t know it, you may have to redo things again!
Most people want to skipping this step. But since it’s required and mandatory, there’s no other choice.
What is the best way to deal with it?
We can always make life easier by using tools like TaxJar.
This article will take a look at this life-saving tool and explain how it can benefit you. While this is a long read it is possible to determine if TaxJar is the tool you require right now.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar? TaxJar Crunchbase
The company was founded in 2013 TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculation. It’s a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of your channels of sales to ensure that you are in compliance with sales tax requirements. It simplifies the processes that take days to complete and is completed in just a few just a few minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is widely used by business owners who run online businesses to keep everything organized and straightforward. Let’s look into the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to make sure is that your accounting tax system is compatible with your sales channel. If you have 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 allows you to display your key metrics in one place. This means that there is no need to collect data from different channels and organize it into one platform. All you need to do is connect TaxJar, and the platform will handle the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list highlighting the platforms they can integrate with:
TaxJar lets customers file their sales taxes manually or through their AutoFile feature. In the purpose of this article, we’ll dig at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect those sales tools. When the time is right for filing income tax returns TaxJar will train you on managing them. But, it is up to you and your team to complete everything within the timeframe. TaxJar is only there to guide you 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 don’t have to fill out any forms manually. Through this feature, everything is automated, from calculating sales taxes to recording and processing them. There could be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to assist you with your accounting issues. The orders you place through your online channels can be compiled into a single dashboard through this platform. Once you’re on the platform you and your staff can access everything you need, such as a list of your transactions, reports, and data.
The best part about the feature you’ve chosen is they allow you to automatically update every day. Not only can they help to know the amount you’ve accumulated however, they can also help you track when your following payments are due.
Their dashboard can also allow you to fully view the sales tax totals within your company. It is also possible to export the information to CSV format. CSV file if you need it to aid in process of financial planning and accounting or if your team needs it for central reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of the channels you sell through. It means you don’t need to hunt for your paperwork 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.
Additionally, knowing the figures for the sales tax you pay in advance will allow you to allocate your funds more effectively. You’ll be aware of the budget you have available for other operating expenses.
What’s more is that TaxJar offers tutorials and training not only for their platform but all things that has to do with sales tax. You can check out their webinars, guides and blog for more details. Apart from that the sales tax calculator should be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms provide amazing features, but they can be too expensive for businesses. That’s why for this section we’ll examine TaxJar’s pricing structures and what each of those options can offer you. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. The company claims that it’s the most suitable plan for you if you need help with filing requirements or reporting. It includes the tax on sales, four autofiles for free each year, and the option of a CSV import. With the starter plan, you can access their AI tax advice.
If you’re a small business proprietor, then this program could be ideal for you. It might not include all of TaxJar’s features however, it does include the basic features you require.
Additionally, you can contact their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking to get a bit more than just the standard features, then the Professional plan might be the right one for you. The price starts at $99 however, it could go up by adding custom features.
What is the difference from the original plan?
Apart from having access to each of Starter plan’s options, you also have access to their phone customer support 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 run a large 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 import integrations of data API integrations, team members and AutoFiles.
There is also a team that is devoted for managing the account. However, they don’t disclose the price of the Premium plan. costs you. TaxJar Crunchbase
However, they did mention that this plan is customized for each user. The cost of the plan will be different in line with what you require for your business.
Luckily, you don’t have to gamble your money just to determine if this service is right for you. If you’re still considering different options, they offer 30 days of free trial. It should give you enough time to see if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to know about TaxJar Let’s relax. In order to sum up the whole thing we’ll go over the advantages and disadvantages of making use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Provides an online sales tax calculator
- Support Service Team
- The dashboard is easy 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
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only applicable to USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out TaxJar provides a fantastic platform to businesses with many sales channels and utilizes plenty of platforms. If that sounds like what you’re doing, then you ought to try this.
It’s not just a way to help you track your products and revenue It can assist you in meeting your deadlines. It is also a great platform for an accountant since they provide a Tax Advisor program. There are tips to follow and get knowledge from their seminars regarding taxes via it.
Using TaxJar can help you reduce time and keep on top of each deadline or requirement you need to fulfill. If you’re living in an area with complex tax laws, this will definitely help you get your mind around it. TaxJar Crunchbase
However, if managing your taxes is straightforward, then TaxJar might not be a good expense. If you only have one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you find the entire process easy to do and you’re comfortable with it, you may be better off doing it on your own.
FAQ TaxJar Crunchbase
What are the areas in which TaxJar offer API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can connect your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions’ amounts are in US$. If you’re using another currency, you will need to convert it into US$ before TaxJar will calculate your tax.