Taxes have always been one of the most difficult things to handle regardless of whether you run a business or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, particularly when your whole day is filled with tasks to complete. If you don’t have enough money to employ an accountant, making it yourself can be risky. If you make a mistake and you don’t know it, you may need to repeat the process!
Almost everyone wants to avoid this step. But , as it’s a requirement to be done, we can’t choose not to.
So , what is the best way to deal with it?
We can always make our lives easier by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can help you. While this is an extensive read, you should be able to assess whether TaxJar is exactly what you need today.
Do you prefer watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
If you prefer to read, we’ll dive right into.
What is TaxJar TaxJar Filing
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. TaxJar is a solution to the entire life cycle. Additionally, you can use it across all your sales channels to ensure compliance with your sales taxes. It makes the process simpler that could can take days to complete, and can be completed in a matter of just a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by owners of online businesses to keep everything organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Features and services
One of the most important things you’ll want to check is your tax-reporting platform seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, it is essential to keep everything in place. The last thing you want is to get a penalty for missing a single minor point.
TaxJar allows you to show your most important data in one location. This means that there is no requirement to collect information from multiple sources and sort it into one 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 can help in the process of making payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows clients to submit their sales tax either manually or via the AutoFile feature. In the purpose of this article, we’ll take a look into both.
If you opt to go it alone, TaxJar will allow you to connect all of the sales channels you use. When the time is right for the filing of income tax returns TaxJar will train you on managing these. But, it is up to you and your team members to complete everything on time. TaxJar is only there to help you understand what you need to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out any forms manually. With this feature, everything is automated, from calculating sales taxes through recording, and then processing them. However, there might be additional charges if they are you do not include this feature in the plan you choose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to ease your accounting woes. The orders you place through your online channels can be compiled into a single dashboard through this platform. From there you and your team will have access to all the information you require, including a list of your transactions, reports, and data.
The greatest benefit of this feature is that it lets you to update your account automatically each day. Not only can they help you keep track of how much you’ve collected and how much you’ve earned, but they also let you keep track of when the next payments are due.
Their dashboard can also allow users to view in detail the overall sales taxes within your company. Additionally, you can export your data to the form of a CSV file, if you want to use it to aid in financial planning and accounting processes or if you require it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep the track of all your sales channels. This means that you don’t have to scramble for your documents whenever you’re when you’re in a pinch. Even if you already have your accountant, this feature will help them be more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your money more efficiently. You’ll know better how much budget you have to cover other operational costs.
But what’s even better is that TaxJar offers tutorials and training not only for their platform but all things connected to sales tax. Check out their webinars, guides, or blog posts for additional details. In addition their sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Certain platforms have 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 levels and what each of these plans can offer. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan costs $19. The company claims that it’s the best plan if you need help in filing and reporting. It comes with taxes on sales and sales as well as 4 annual AutoFiles for free, as well as an CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a smaller company owner, this plan should be ideal for you. It may not have all the features offered by TaxJar however, it does include the essentials that you need.
In addition, you can reach their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking for something that is more than the basics and options, then the Professional plan could be the one for you. It starts at $99, however, it could go up if you add custom features.
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 access to APIs, as well as the ability to do advanced CSV import. You can also get 12 AutoFiles for free each year.
If you own a huge company, you may need to opt for premium plans instead. It has all of the features that you require to help with your taxes. Moreover, they allow unlimited data import integrations, Integrations with APIs, teams of users and AutoFiles.
There is also a team that is devoted in managing your accounts. But, they don’t divulge the amount that the Premium plan costs you. TaxJar Filing
But they did state that the plan is custom-made for each user. The cost of the plan will be different depending on what you need to run your business.
Luckily, you don’t have to gamble your money just to see if this platform is for you. If you’re still looking into different options, they offer a 30-day free trial. This should be enough time to determine whether the service is a good fit for you.
Pros and Pros and
After we’ve gone over everything you should know about TaxJar Let’s relax. To sum it all up we’ll go over the advantages and disadvantages of making use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t have access to 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 out, TaxJar is an excellent platform for companies with multiple sales channels and uses many platforms. If that sounds like what you’re doing, then you ought to try this.
Not only can it assist you in keeping track of your products and revenue, but it can help you meet the deadlines you set. This is also an excellent platform for an accountant since they offer the Tax Advisor program. There are tips to follow and gain knowledge from their workshops about taxes through it.
Using TaxJar can allow you to reduce time and keep the track of each deadline and obligation you have to fulfill. If you’re living in an area with complex tax laws, this can definitely help you get your mind around it. TaxJar Filing
However, if managing taxes is easy and straightforward, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of everything. Moreover, if you find the whole process easy to do and you’re comfortable with it, you may be better in doing it all on your own.
FAQ TaxJar Filing
What are the areas in which TaxJar offer API assistance?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transactions are in US$. If you’re using a different currency, you’ll have to convert it into USdollars before TaxJar can calculate the tax.