Taxes have always been one of the hardest things to do regardless of whether you’re running your own business or not. More so if you don’t have a degree in finance or accounting. Tax-related tasks can be overwhelming, particularly when you’re filled with tasks to complete. In the event that you do not have the budget to employ an accountant, performing the task on your own could be dangerous. If you make a mistake and you don’t know it, you may have to redo things again!
Nearly everyone would prefer 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 make life easier with tools such as TaxJar.
This article will take a look at this popular life-saving device and how it can help you. Although this is quite an extensive read but you’ll be able to assess whether TaxJar is the tool you require today.
Do you prefer to watch videos instead? Watch 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 is TaxJar TaxJar Ebook
Founded in 2013, 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. Additionally, you can use it across all the sales channels you use to make sure you’re in compliance with sales taxes. It makes the process simpler that could require days to complete and finish within minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
How can this help you?
TaxJar is widely used by owners of online businesses to keep everything simple and organized. Let’s take a look at their features and services.
Services and features
One of the most important things you’ll want to check is that your accounting tax software seamlessly works well with your sales channel. If you’re using multiple sales channels, you must keep everything in place. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar allows you to show your key metrics in one spot. This means that there is no need to gather information from multiple sources and sort it into a single platform. All you have to do is connect TaxJar, and the platform will handle all the rest.
In addition, 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 manually or through their AutoFile feature. In the purpose of this article, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all those sales tools. When the time is right for filing income tax returns The team will guide you on managing the tax returns. But, it is up for you and your team to complete the process within the timeframe. TaxJar will only provide guidance on what you need to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. This feature will ensure that everything is automated, from calculating sales taxes to recording and processing it. There could be extra fees if you do not include this feature in the plan you select.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be put together into one dashboard using this platform. Once you’re on the platform, you and your team will have access to all the information you require, including a list of your transactions, reports, as well as information.
The best part about the feature you’ve chosen is it lets you to update your account automatically each day. They not only let you keep track of how much you’ve earned however, they can also help you track when your following payments are due.
The dashboard allows you to fully view the total sales tax in your business. It is also possible to export the information as a CSV file in case you require it in your accounting and financial planning processes or if your team needs it to run centralized reports.
Training and Streamlining
TaxJar helps you organize and keep track of all of your sales channels. That means you won’t have to search for your documents when you need them when you’re in a pinch. Even even if you already have an accountant, this function can make them 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 operating costs.
What’s more is that TaxJar offers tutorials and training, not just on their platform, but all things that has to do with sales tax. Check out their webinars, guides or blog posts for additional details. Apart from that, their sales tax calculator is useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they can be too costly for your business. For this reason we’ll examine TaxJar’s pricing levels and what each of those choices can provide you. At present, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They claim that it’s the most suitable plan for you for those who need assistance with filing requirements or reporting. It includes sales tax reporting, four annual AutoFiles for free, as well as a CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale company proprietor, then this program will be perfect for you. It may not have all of TaxJar’s features but it comes with all the basics you require.
You can also contact their support team with their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking for different from the basics, then the Professional plan might be the right one for you. It starts at $99, but it can go higher if you add custom features.
What is the difference from the starter plan?
In addition to having access to all of the Starter plan’s options, you also have access to their phone customer support access to APIs, as well as advanced CSV import. You can also receive 12 free AutoFiles every year.
If you run a large enterprise, you may want to choose premium plans instead. It comes with all the features you need to help with your taxes. In addition, they offer unlimited import integrations of data, API integrationsfor team members as well as AutoFiles.
There is also a team dedicated for managing the account. They don’t reveal the price of the Premium plan. will cost you. TaxJar Ebook
But they did state that the plan is custom-made for every user. So the costs will vary depending on what you need for your business.
It’s a good thing that you don’t have to bet your life on it to see if this platform is for you. If you’re still looking into different options, they offer 30 days of free trial. It should give you enough time to see whether the software is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to be aware of TaxJar let’s take a breather. To summarize we’ll go over the advantages and disadvantages of using TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers an online sales tax calculator
- Support Service Team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers.
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then should try this.
Not only will it assist you in keeping track of the sales and profits of your business, but it can help you meet the deadlines you set. It is also a great platform for an accountant since they have a Tax Advisor program. You can find tips and learn from their sessions on taxes by using it.
The use of TaxJar will help you get more done while keeping track of every deadline or requirement you need to fulfill. If you’re living in an area with complex tax laws, this will surely help you wrap your mind around it. TaxJar Ebook
However, if managing your taxes is straightforward and straightforward, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. Moreover, if you find the entire procedure easy to complete then you’re better off doing it on your own.
FAQ TaxJar Ebook
What are the areas in which TaxJar offer API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transactions are in US$. If you’re using another currency, you’ll need to convert it into US$ prior to when TaxJar can calculate your tax.