Taxes are always one of the most difficult things to handle regardless of whether you run your own business or not. Particularly if you don’t have a degree in finance or accounting. Tax-related tasks can be overwhelming, especially when your whole day is full of things to be done. When you’re not able to afford the budget to hire an accountant, performing the task on yourself can be dangerous. If you overlook one thing, you might have to do it all over again!
Almost everyone wants to skip this step. But since it’s required and mandatory, there’s no other choice.
So what is the best way to deal with it?
It is always possible to make life easier with tools such as TaxJar.
This article will take a look at this well-known life-saving tool and explain how it can benefit you. While this is a long read but you’ll be able to gauge whether TaxJar is exactly what you need right now.
Are you looking watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
For those who like to read, then we’ll dive right into.
What is TaxJar TaxJar For Marketplaces
Founded in 2013, TaxJar is an application that automatizes your filings, reports, and sales tax calculations. It is a solution for your entire sales tax life cycle. In addition, you can apply it across all the sales channels you use to make sure you’re in compliance with sales taxes. It streamlines processes that require days to complete and is completed in just a few just a few minutes.
TaxJar has been utilized in various industries like food and beverage companies, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is extensively used by online business owners to make their business more simple and organized. 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 along with sales funnels. If you have multiple sales channels, you must maintain everything in line. The last thing you want is to be penalized for missing a single minor point.
TaxJar lets you display your most important data in one location. That way, there’s no need to collect data in multiple channels and then organize it on a single platform. All you need to do is to integrate TaxJar then the system will take care of all the rest.
In addition, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms they can integrate with:
TaxJar allows clients to submit their sales tax manually or through their AutoFile feature. For this review, we’ll look at both.
If you choose to manually file your tax returns, 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 The team will guide you on managing the tax returns. However, it will be up to you and your team members to complete everything within the timeframe. TaxJar is only there to help you understand what you should accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit the forms in a manual manner. This feature will ensure that everything will be automated from calculating sales tax through recording, and then processing it. However, there might be additional costs if the feature is you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be put together into a single dashboard via this platform. Once you’re on the platform, you and your team will have access to all the information you need, such as an inventory of your transactions, reports, and data.
The greatest benefit of the feature you’ve chosen is they allow you to update your account automatically each day. Not only can they help you know how much you’ve earned and how much you’ve earned, but they also let you determine when your next payments are due.
Their dashboard can also allow users to view in detail the total sales tax for your business. It is also possible to export the data as a CSV file in case you require it to aid in financial planning and accounting processes or if you require it for central reporting.
Training and Streamlining
TaxJar helps you organize and keep track of all of the channels you sell through. This means that you don’t have to hunt for your paperwork whenever you’re in the event of a need. Even when you already have your accountant, this function can make them more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have to cover other operational expenses.
The best part is that TaxJar offers training and tutorials, not just on their platform, but everything connected to sales tax. You can check out their webinars, guides, or blog posts for additional details. Apart from that, their sales tax calculator is beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to set your budget. Certain platforms have amazing capabilities, but they’re often too expensive for businesses. For this reason, we’ll look into TaxJar’s pricing structures and the features that each of these choices can provide you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan starts at $19. They claim that it’s the best plan if you need help with filing requirements or reporting. It includes taxes on sales and sales as well as 4 free yearly AutoFiles, and the option of a CSV import. Even with the basic plan, you have access to their AI tax recommendations.
If you’re a small-scale business manager, the plan should be ideal for you. It may not offer all the features of TaxJar however, it does include the essentials that you need.
You can also contact the support team 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 basic features and options, then the Professional plan might be the right one for you. The price starts at $99 however, it could go up when you add additional features.
So how different is it from the starter plan?
In addition to accessing all of the Starter plan’s features, you also get access to their phone customer support Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you have a massive company, you may need to go for the Premium plan instead. It includes all of the features needed to make your tax filing easier. In addition, they offer unlimited data import integrations as well as API integrations, team members as well as AutoFiles.
They also have a staff that is devoted to managing your account. However, they don’t disclose how much the Premium plan will cost you. TaxJar For Marketplaces
However, they did say that this plan is tailor-fit for every user. So the costs will vary depending on what you need for your company.
Luckily, you don’t have to risk your money to find out if the platform is the right one for you. If you’re still looking into various options, they provide a 30-day free trial. This should be enough time to determine if the platform is an excellent fit for you.
Pros and Pros and
Now that we’ve covered all you must be aware of TaxJar Let’s relax. To sum it all up Here are the advantages and disadvantages of making use of TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms
- Allows you to track multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable to USA customers.
- Owners and accountants should review local laws
The Final Verdict
With everything clearly laid down, TaxJar provides a fantastic platform to companies with multiple sales channels and uses numerous platforms. If that’s what you’re doing, then ought to try this.
Not only will it aid in tracking the sales and profits of your business however, it will help you meet your deadlines. This is also an excellent opportunity for accountants since they provide tax Advisor program. You can get tips and gain knowledge from their workshops about taxes through it.
The use of TaxJar can allow you to save more time while keeping track of every deadline or requirement you need to fulfill. If you’re living in an area with complex tax laws, this will definitely help you get your mind around it. TaxJar For Marketplaces
However, if managing your taxes is simple If it isn’t, then TaxJar might not be a good investment. If you only have one or two channels of sales, TaxJar won’t be needed to track all of it. Moreover, if you find the whole procedure easy to complete, you might be better to do it on your own.
FAQ TaxJar For Marketplaces
What are the areas in which TaxJar offer API assistance?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can link your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions are in USdollars. If you’re using a different currency, you will need to convert it to USdollars prior to when TaxJar can calculate the tax.