Taxes are always one of the most difficult things to handle, whether you’re running a business or not. Even more so if you do not have any experience in accounting or finance. Tax-related issues can be overwhelming, especially when you’re full of things to be done. In the event that you do not have the budget to engage an accountant performing the task on your own could be dangerous. If you make a mistake it could mean you need to repeat the process!
Almost everyone wants 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 simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and how it can benefit you. While this is lengthy but you’ll be able to assess whether TaxJar is what you need in the present.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
If you prefer to read, let’s dive right in.
What is TaxJar TaxJar Documentation
Founded in 2013, TaxJar is a platform that helps automate your reports, filings, and sales tax calculation. TaxJar is a solution to all aspects of your sales tax cycle. Furthermore, you can utilize it across all of your sales channels to ensure that you are in compliance with sales taxes. It simplifies the processes that require days to complete and is completed in just a few just a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is used extensively by owners of online businesses to make their business more neat and simple. Let’s look into the benefits and features of TaxJar.
Features and services
One of the first things you’ll need to make sure is your tax-reporting system is compatible in conjunction with the sales channels you use. If you’re selling through multiple channels, you must maintain everything in line. The final thing you would like is to face a penalty due to overlooking just one minor detail.
TaxJar lets you display your critical metrics in one place. This means that there is no need to collect information from multiple sources and sort it into a single platform. All you need to do is integrate TaxJar it will do all the rest.
Other than that, TaxJar also integrates with other platforms to assist with payments. Here’s a list highlighting the platforms they can integrate with:
TaxJar allows clients to file their sales taxes by hand or using the AutoFile feature. For the purpose of this article, we’ll dig into both.
If you opt to go it alone, TaxJar will allow you to connect those sales tools. Once the time comes for filing tax returns for income, the team will instruct you on how to manage these. It is up to you and your team to complete everything in time. TaxJar will only guide you on what you have to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. Through this feature, everything is automated, from calculating taxes on sales in order to record and process them. But, it is possible to incur additional costs if the feature is you do not include this feature in the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to assist you with your accounting issues. All orders made through your e-commerce channels can be combined into a single dashboard via this platform. From there you and your staff will have access to everything you need, such as the list of transactions, reports, and the data.
The greatest benefit of this feature is that it lets you to update automatically every day. Not only can they help you know how much you’ve accumulated, but they also help you keep track of when the next payment is due.
Their dashboard can also allow you to see the total sales tax for your business. Additionally, you can export the information to a CSV file in case you require it to aid in process of financial planning and accounting or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar helps organize and keep the track of all the channels you sell through. It means you don’t need to search for your documents when you need them in a pinch. Even even if you already have an accountant, this function can help them be more efficient.
Additionally, knowing the figures for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll know better how much budget you have to cover other operating costs.
But what’s even better is that TaxJar provides training and tutorials not only for their platform , but also for anything connected to sales tax. Check out their webinars, guides, and blog for more info. In addition, their sales tax calculator is useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. For this reason, we’ll look into TaxJar’s pricing tiers and what each of those plans can offer. Currently, TaxJar offers three plans including 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 comes with sales tax reporting, four autofiles for free each year, and an CSV import. With the starter plan, you can access their AI tax tips.
If you’re a smaller company manager, the plan should be perfect for you. It might not include all the features of TaxJar, but it has all the basics you require.
In addition, you can reach their support team with their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking to get a bit more than just 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 when you add additional features.
So how different is it from the starter plan?
In addition to accessing each of Starter plan’s features, you also have the support of their customer service via phone, API access, and the ability to do advanced CSV import. You can also receive 12 free AutoFiles every year.
If you have a massive business, you might need to go for the Premium plan instead. It comes with all the features needed to aid in your tax preparation. Moreover, they allow unlimited data import integrations as well as API integrationsfor team users, and AutoFiles.
They also have a team who are devoted in managing your accounts. However, they don’t disclose how much the Premium plan is going to cost. TaxJar Documentation
However, they did mention that this plan is tailor-fit to each user. So the costs will vary depending on what you need to run your business.
Luckily, you don’t have to risk your money to find out if the platform is for you. If you’re still considering different options, they offer 30 days of free trial. This should give you enough time to see whether the service is a good fit for you.
Pros and Pros and
Now that we’ve covered all you should know about TaxJar let’s take a breather. In order to sum up the whole thing Here are the pros and cons of using TaxJar for your business.
- Does the plan include the 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 simple to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms
- It allows you to monitor 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 applicable to USA customers
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything clearly laid down, TaxJar provides a fantastic platform to businesses with many sales channels and utilizes many platforms. If that sounds like what you’re doing, then ought to try this.
It’s not just a way to help you track your products and revenue It can help you meet the deadlines you set. This is also an excellent option for accountants as they have a Tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
Utilizing TaxJar can help you reduce time and keep the track of each deadline and obligation you have to meet. If you live in a region with a lot of tax regulations, this will surely help you wrap your mind around it. TaxJar Documentation
However, if managing your taxes is simple and straightforward, then TaxJar might not be a good investment. If you only have one or two channels of sales, TaxJar won’t be needed to keep track of all of it. Moreover, if you find the whole process easy to do and you’re comfortable with it, you may be better to do it on your own.
FAQ TaxJar Documentation
What are the areas in which TaxJar provide API assistance?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All of the transactions’ amounts are in US$. If you’re using another currency, you will need to convert it into US$ prior to when TaxJar determines the tax.