Taxes are always one of the most difficult things to handle regardless of whether you run your own business or not. Even more so if you do not have a background in accounting or finance. Tax-related issues aren’t easy, particularly when you’re filled with tasks to complete. If you don’t have the budget to engage an accountant doing it on yourself can be risky. If you miss one detail and you don’t know it, you may have to do it all over again!
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.
We’ll look at this popular life-saving tool and explain how it can assist you. Although this is quite an extensive read but you’ll be able to gauge whether TaxJar is exactly what you need in the present.
Prefer to watch videos instead? Check out this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
For those who like to read, then let’s dive right in.
What is TaxJar TaxJar Erpnext
Founded in 2013, TaxJar is a platform that helps automate your reports, filings, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it across all your sales channels to ensure compliance with sales taxes. It makes the process simpler that could take days to complete and finish within minutes.
TaxJar has been utilized in a variety of industries, including food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by online business owners to ensure that everything is organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to ensure is your tax-reporting system is compatible 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 face a penalty due to missing a single minor point.
TaxJar allows you to show your most important metrics in one spot. This means that there is no need to collect information from multiple sources and sort it into one platform. All you need to do is connect TaxJar, and the platform will take care of all the rest.
Other than that, TaxJar also integrates with other platforms to assist with payments. Here’s a list of the platforms they are able to integrate with:
TaxJar allows clients to file their sales taxes manually or through their AutoFile feature. For the purpose of this article, we’ll take a look into both.
If you choose to go it alone, TaxJar will allow you to connect the sales channels you use. Once the time comes for filing income tax returns TaxJar will train you on how to manage these. However, it will be up to you and your staff to complete the process on time. TaxJar is only there to help you understand what you need to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out all forms by hand. With this feature, everything is automated, from calculating sales tax to recording and processing them. But, it is possible to incur additional charges if they are not included in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to help you with your accounting problems. Your orders from your e-commerce 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 the list of transactions, reports, and data.
The best part about this option is the fact that they allow you to update your account automatically each day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you track when your following payments are due.
Their dashboard also allows you to fully view the sales tax totals for your business. Additionally, you can export your data as the form of a CSV file, if you want to use it in your financial planning and accounting processes or if your team requires it to run centralized reports.
Training and Streamlining
TaxJar assists in organizing and keeping the track of all your sales channels. It means you don’t need to scramble for your documents when you’re in a pinch. Even when you already have your accountant, this function can 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 know better how much budget you have to cover other operational expenses.
The best part is that TaxJar offers training and tutorials not only for their platform , but also all things connected to sales tax. You can look through their webinars, guides, as well as their blog to find more information. Apart from that, their sales tax calculator should be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms offer superb capabilities, but they’re often too expensive for businesses. For this reason, we’ll look into TaxJar’s pricing structures and what each of those options can offer you. At present, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan starts at $19. The company claims that it’s the best plan for those who need assistance in filing and reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as a CSV import. With the starter plan, you can access their AI tax tips.
If you’re a small company owner, this 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 customer support via their email support chart. You’ll also be able to use their integration capabilities.
If you’re looking for different from the standard features Professional might be the right one for you. The price starts at $99 but you can increase it if you add custom features.
So how different is it from the original plan?
In addition to accessing each of Starter plan’s features, you also get access to their support via phone access to APIs, as well as advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large enterprise, you may want to opt for the Premium plan instead. It includes all of the features needed to help with your taxes. Additionally, they permit unlimited data import integrations, API integrationsfor team members and AutoFiles.
There is also a team dedicated to managing your account. But, they don’t divulge the amount that the Premium plan costs you. TaxJar Erpnext
But they did state that the plan is custom-made for each user. So the costs will vary in line with what you require to run 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 looking into other options, they have the opportunity to try a free trial for 30 days. This should give you enough time to gauge whether the software is the right choice for you.
Pros and Cons
After we’ve gone over everything you must know about TaxJar let’s take a break. In order to sum up the whole thing we’ll go over the pros and cons of the use of TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms.
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature
- Only applicable for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything clearly laid down, TaxJar can be a great platform companies that have multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then you should try this.
Not only will it help you track your revenue and products It can also help you meet the deadlines you set. It is also a great opportunity for accountants since they provide tax Advisor program. You can get tips and get knowledge from their seminars on taxes by using it.
The use of TaxJar will help you save more time while keeping on top of each deadline or requirement you need to fulfill. If you live in a region with a lot of tax regulations, this will certainly help you to get your mind around it. TaxJar Erpnext
If handling taxes is easy and straightforward, then TaxJar might not be a good expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to track everything. In addition, if you find the entire procedure simple to follow, you might be better in doing it all on your own.
FAQ TaxJar Erpnext
What are the areas in which TaxJar offer API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transaction amounts are n US$. If you’re using a different currency, you will need to convert it into US$ before TaxJar determines your tax.