Taxes are always one of the hardest things to do regardless of whether you’re running an enterprise or not. More so if you don’t have a background in finance or accounting. Tax-related issues can be overwhelming, particularly when your whole day is filled with tasks to complete. When you’re not able to afford enough money to hire an accountant, making it your own can be dangerous. If you overlook one thing, you might have to redo things again!
Most people want to skip this step. But since it’s required, we have no choice.
What can we do about it?
We can make our lives easier with tools such as TaxJar.
This article will take a look at this well-known life-saving device and how it can benefit you. Although this is quite a long read but you’ll be able to assess whether TaxJar is the tool you require right now.
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.
For those who like to read, let’s dive right in.
What exactly is TaxJar? TaxJar For Magento 2
The company was founded in 2013 TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculations. It’s a solution for the entire life cycle. Additionally, you can use it across all your sales channels to make sure you’re in compliance with sales taxes. It makes the process simpler that could take days to complete and can be completed in a matter of minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is extensively used by online business owners to ensure that everything is neat and simple. Let’s look into the features and services offered by TaxJar.
Services and features
One of the first things you’ll need to ensure you have a tax accounting system seamlessly works well in conjunction with the sales channels you use. If you’re using multiple sales channels, it is essential to ensure that everything is in order. The most important thing is not to be penalized for missing a single minor point.
TaxJar lets you display your most important metrics in one place. This means that there is no requirement to collect information from multiple sources and then organize it on a single platform. All you need to do is integrate TaxJar it will handle the rest.
In addition, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of platforms that they can connect with:
TaxJar lets customers file their sales taxes manually or through their AutoFile feature. For the purpose of this article, we’ll look into both.
If you opt to go it alone, TaxJar will allow you to connect all the sales channels you use. When it comes time to filing income tax returns The team will guide you on how to manage the tax returns. But, it is up to you and your team to finish the tax returns on time. TaxJar is only there to help you understand what you need to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling for you. This means that you won’t need to fill out all forms by hand. With this feature, everything will be automated from calculating sales taxes through recording, and then processing them. There could be additional costs if the feature is 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 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 all the information you need, such as a list of your transactions, reports, as well as information.
The greatest benefit of the feature you’ve chosen is it allows you to automatically update every day. They not only let you know how much you’ve collected however, they can also help you determine when your next payments are due.
Their dashboard also allows users to view in detail the total sales tax within your company. Additionally, you can export your data to the form of a CSV file in case you require it for 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 on top of all your sales channels. That means you won’t have to hunt for your paperwork when you’re when you’re in a pinch. Even when you already have your accountant, this feature can aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will help you plan your money more efficiently. You’ll know better how much budget you have to cover other operational costs.
What’s more is that TaxJar offers tutorials and training not only for their platform , but also for anything connected to sales tax. Check out their webinars, guides, and blog for more information. Apart from that, their sales tax calculator should be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and the features that each of these options can offer you. Presently, 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 includes taxes on sales and sales as well as 4 autofiles for free each year, and a CSV import. Even with the basic plan, you have access to their AI tax tips.
If you’re a small-scale business owner, this plan should be ideal for you. It may not have all the features of TaxJar but it comes with the basic features you require.
In addition, you can reach their customer support via their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking for something that is more than the basics, then the Professional plan may be the best option for you. The price starts at $99 but you can increase it if you add custom features.
How different is it from the starter plan?
Apart from having access to all of the Starter plan’s features, you also get access to their phone customer support 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 business, you might need to choose premium plans instead. It includes all of the features you need to help with your taxes. In addition, they offer unlimited integrations with data imports, API integrationsfor team users, and AutoFiles.
They also have a team that is devoted in managing your accounts. However, they don’t disclose the amount that the Premium plan costs you. TaxJar For Magento 2
But they did state that this plan is customized for every user. So the costs will vary in line with what you require to run your business.
Fortunately, you don’t need to gamble your money just to find out if the platform is for you. If you’re still looking into different options, they offer 30 days of free trial. This should be enough time to see if the platform is an excellent fit for you.
Pros and Pros and
After we’ve gone over everything you must be aware of TaxJar Let’s relax. To sum it all up we’ll go over the pros and cons of making use of TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help save 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
- AutoFile limit is 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 review local laws
The Final Verdict
With everything clearly laid out TaxJar is an excellent platform for companies with numerous sales channels, and that utilizes many platforms. If that sounds like what you’re doing, then you must try TaxJar.
Not only will it help you track your products and revenue however, it will also help you meet the deadlines you set. It is also a great platform for an accountant since they offer the Tax Advisor program. You can find tips and get knowledge from their seminars regarding taxes via it.
The use of TaxJar will help you save more time while keeping track of every deadline and obligation you have to fulfill. If you live in an area with complex tax laws, this can certainly help you to get your head around it. TaxJar For Magento 2
But if handling your taxes is simple and straightforward, then TaxJar might not be a good investment. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. In addition, if you find the entire procedure easy to complete, you might be better to do it on your own.
FAQ TaxJar For Magento 2
What are the areas in which TaxJar provide API support?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Can I connect Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All of the transactions are in US$. If you’re using another currency, you’ll have to convert it to USUSD prior to when TaxJar determines your tax.