Taxes have always been one of the hardest things to do regardless of whether you run your own business or not. Even more so if you do not have a background in finance or accounting. Tax-related tasks can be overwhelming, particularly when you’re packed with things to do. When you’re not able to afford enough money to engage an accountant performing the task on your own can be risky. If you miss one detail and you don’t know it, you may need to repeat the process!
Almost everyone wants to avoid this step. However, since it’s mandatory, we have no choice.
So what can we do about it?
It is always possible to make life easier by using tools like TaxJar.
This article will take a look at this popular life-saving device and how it can assist you. While this is lengthy it is possible to determine if TaxJar is the tool you require today.
Are you looking watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
If you prefer to read, let’s get right into it.
What is TaxJar? TaxJar Ecommerce
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. It’s a solution for all aspects of your sales tax cycle. Additionally, you can use it in all of the sales channels you use to make sure you’re in compliance with sales tax requirements. It simplifies the processes that take days to complete and can be completed in a matter of only a few minutes.
TaxJar has been used in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is used extensively by business owners who run online businesses to make their business more organized and straightforward. Let’s explore their features and services.
Features and services
One of the first things you’ll need to ensure is your tax-reporting system perfectly integrates with your sales channel. If you have multiple sales channels, it is essential to maintain everything in line. The most important thing is not to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your most important metrics in one place. This means that there is no need to collect data in multiple channels and then organize it on one platform. All you have to do is connect TaxJar, then the system will take care of the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of the platforms that they can connect with:
TaxJar allows clients to submit their sales tax manually or through their AutoFile feature. For our review we’ll dig at both.
If you opt to do it manually, TaxJar will allow you to connect the sales channels you use. When it comes time to filing tax returns for income TaxJar will train you on managing them. It is up for you and your team members to finish the tax returns in time. TaxJar is only there to guide you on what you need to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out all forms by hand. Through this feature, everything is automated, from calculating sales taxes to recording and processing them. There could be extra fees if not included in the plan you select.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting problems. The orders you place through your online channels can be put together into a single dashboard through this platform. Once you’re on the platform, you and your team will have access to everything you need, such as an inventory of your transactions, reports, and the data.
The best part about this feature is that it allows you to automatically update every day. They not only let you know how much you’ve earned however, they can also help you keep track of when the next payment is due.
The dashboard allows you to fully view the overall sales taxes for your business. Additionally, you can export the data in a CSV file, if you want to use it to aid in process of financial planning and accounting or if you require it for central reporting.
Training and Streamlining
TaxJar helps organize and keep track of all of the channels you sell through. That means you won’t have to hunt for your paperwork when you’re when you’re in a pinch. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll be aware of the budget you have available for other operational expenses.
What’s more is that TaxJar offers tutorials and training and tutorials, not just on their platform, but everything related to sales tax. You can look through their webinars, guides as well as their blog to find more info. Apart from that the 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 establish your budget. Some platforms provide amazing capabilities, but they’re often too costly for your business. 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 that are: Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the most suitable plan for you to help you with filing requirements or reporting. It comes with sales tax reporting, 4 autofiles for free each year, and the option of a CSV import. With the starter plan, you can access their AI tax recommendations.
If you’re a smaller business manager, the plan could be ideal for you. It may not have all the features offered by TaxJar however, it does include all the basics you require.
You can also contact their customer support via their support chart for email. You’ll also have access to their integration features.
If you’re looking for something a bit more than just the basic features and options, then the Professional plan may be the best option for you. It’s priced at $99 but it can go higher when you add additional features.
What is the difference from the original plan?
In addition to accessing every one of Starter plan’s features, you also have their support via phone, API access, and advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you have a massive business, you might need to opt for premium plans instead. It includes all of the features needed to help with your taxes. In addition, they offer unlimited import integrations of data as well as API integrations, team users, and AutoFiles.
There is also a team dedicated in managing your accounts. However, they don’t disclose how much the Premium plan costs you. TaxJar Ecommerce
But they did state that the plan is custom-made for every user. So the costs will vary according to what you require for your company.
Fortunately, you don’t need to risk your money to see if this platform is the right one for you. If you’re still considering various options, they provide a 30-day free trial. This should give you enough time to gauge if the platform is the right choice for you.
Pros and Cons
After we’ve gone over everything you need to know about TaxJar let’s take a breather. To sum it all up, here are the pros and cons of making use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features help 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 is possible to integrate it with other platforms.
- It allows you to monitor multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only valid for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything laid out TaxJar can be a great platform companies with multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then must try TaxJar.
It’s not just a way to aid in tracking your revenue and products, but it can also help you meet your deadlines. This is also an excellent option for accountants as they have the Tax Advisor program. You can find tips and get knowledge from their seminars about taxes through it.
The use of TaxJar can allow you to get more done while keeping track of every deadline and requirement you have to meet. If you live in a region with a lot of tax laws, this will definitely help you get your head around it. TaxJar Ecommerce
But if handling your taxes is straightforward, then TaxJar could be a waste of expense. If you have only one or two sales channels, TaxJar won’t be needed to keep track of everything. If you find the entire procedure easy to complete and you’re comfortable with it, you may be better off doing it by yourself.
FAQ TaxJar Ecommerce
What areas does TaxJar provide API support?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify 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 using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions’ amounts are in USdollars. If you’re using another currency, you’ll need to convert it into USdollars before TaxJar determines your tax.