Taxes are always one of the hardest things to do regardless of whether you run your own business or not. More so if you don’t have a background in finance or accounting. Tax-related work can be overwhelming, particularly when your whole day is full of things to be done. If you don’t have the budget to hire an accountant, doing it on your own can be risky. If you overlook one thing and you don’t know it, you may have to do it all over again!
Most people want to skip this step. But , as it’s a requirement and mandatory, there’s no other choice.
So what can we do about it?
It is always possible to make life easier by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and how it can benefit you. Although this is quite lengthy it is possible to gauge whether 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 review of TaxJar’s features.
For those who like to read, then let’s get right into it.
What exactly is TaxJar? TaxJar Etsy
The company was founded in 2013 TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of your sales channels to make sure you’re in compliance with sales taxes. It streamlines processes that can take days to complete, and is completed in just a few only a few minutes.
TaxJar is used in different industries such as food and beverage companies, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is widely used by online business owners to keep everything neat and simple. 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 software seamlessly works well in conjunction with the sales channels you use. If you have multiple sales channels, it is essential to ensure that everything is in order. The most important thing is not to be penalized for overlooking just one minor detail.
TaxJar allows you to show your key data in one location. This means that there is no need to gather information from multiple sources and then organize it on a single platform. All you need to do is connect TaxJar, and the platform will do the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of platforms they can integrate with:
TaxJar allows clients to make sales tax filings by hand or using their AutoFile feature. In the purpose of this article, we’ll take a look at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all of those sales tools. Once the time comes for filing tax returns for income TaxJar will train you on how to manage them. However, it will be up for you and your team to finish the tax returns in time. TaxJar will only guide you on what you need to accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. With this feature, everything is automated, from calculating sales tax to recording and processing them. But, it is possible to incur additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to assist you with your accounting woes. 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 everything you need, like the list of transactions, reports and the data.
The best part about this feature is that it lets you to automatically update every day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you determine when your next payment is due.
Their dashboard also allows you to fully view the overall sales taxes within your company. You can also export the information as a CSV file if you need it in your process of financial planning and accounting or if your team requires it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of the channels you sell through. This means that you don’t have to search for your documents whenever you’re in a pinch. Even if you already have your accountant, this function can aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will help you plan your funds better. You’ll be aware of the budget you have available for other operating costs.
But what’s even better is that TaxJar provides training and tutorials not only for their platform but for anything related to sales tax. You can check out their webinars, guides and blog for more details. In addition the sales tax calculator should be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb features, but they can be too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing levels and what each of these plans can offer. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. They claim that it’s the most effective plan for those who need assistance in filing and reporting. It includes taxes on sales and sales as well as four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small-scale business manager, the plan could be ideal for you. It may not offer all the features offered by TaxJar, but it has the essentials that you need.
Additionally, you can contact their support team with their support chart for email. Additionally, you’ll have access to their integration features.
If you’re looking for something that is more than the basic features, then the Professional plan may be the best option for you. It 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 all of the Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and sophisticated CSV import. They also allow you to have 12 free AutoFiles each year.
If you have a massive business, you might need to choose the Premium plan instead. It comes with all the features you need to make your tax filing easier. Additionally, they permit unlimited integrations with data imports API integrationsfor team members, and AutoFiles.
They also have a team who are devoted to managing your account. They don’t reveal how much the Premium plan is going to cost. TaxJar Etsy
However, they did mention that this plan is tailor-fit to each user. The cost of the plan will be different in line with what you require for your business.
It’s a good thing that you don’t have to gamble your money just to determine if this service is for you. If you’re still looking into other options, they have 30 days of free trial. This should give you enough time to see whether the software is a good fit for you.
Pros and Pros and
After we’ve gone over everything you must 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.
- There is a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator.
- Has support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out TaxJar is an excellent platform for companies that have many sales channels and utilizes plenty of platforms. If that sounds like what you’re doing, then you should try this.
It’s not just a way to help you track the sales and profits of your business however, it will assist you in meeting your deadlines. This is also an excellent option for accountants as they provide the Tax Advisor program. You can find tips and learn from their sessions on taxes by using it.
Utilizing TaxJar will help you save more time while keeping track of every deadline and obligation you have to meet. If you’re in a region with a lot of tax laws, this can surely help you wrap your head around it. TaxJar Etsy
But if handling your taxes is simple, then TaxJar may be an unnecessary expense. If you have only one or two sales channels, TaxJar won’t be needed to track all of it. If you find the whole process easy to do, you might be better off doing it on your own.
FAQ TaxJar Etsy
What areas does TaxJar provide API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions are in USdollars. If you’re using another currency, you’ll need to convert it to USdollars before TaxJar will calculate your tax.