Taxes have always been one of the hardest things to do regardless of whether you run an enterprise or not. Even more so if you do not have a degree in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is packed with things to do. When you’re not able to afford the funds to employ an accountant, doing it on your own can be dangerous. If you miss one detail, you might have to do it all over again!
Most people want to avoid this step. But since it’s required to be done, we can’t choose not to.
What can we do about it?
We can always make our lives easier by using tools like TaxJar.
We’ll look at this popular life-saving device and how it can help you. Even though this is a long read, you should be able to assess whether TaxJar is exactly what you need in the present.
Do you prefer video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
If you prefer to read, then we’ll dive right into.
What is TaxJar TaxJar For Small Startups Online Merchants
Founded in 2013, TaxJar is a platform that helps automate your filings, reports, and sales tax calculation. It’s a solution for the entire life cycle. Additionally, you can use it in all of your sales channels to make sure you’re in compliance with your sales taxes. It makes the process simpler that could require days to complete and is completed in just a few just a few minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is widely used by owners of online businesses to keep everything organized and straightforward. Let’s explore the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to ensure is your tax-reporting system seamlessly works well with your sales channel. If you have multiple sales channels, it is essential to maintain everything in line. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar allows you to show your key metrics in one spot. That way, there’s no need to gather data from different channels and then organize it on one platform. All you have to do is to integrate TaxJar, and the platform will take care of all the rest.
In addition, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows clients to make sales tax filings by hand or using TaxJar’s AutoFile feature. For our review we’ll dig into both.
If you decide to do it manually, TaxJar will allow you to connect all your sales platforms. When it comes time to filing income tax returns The team will guide you on how to manage them. It is up to you and your staff to complete everything in time. TaxJar is there to guide you on what you have to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. Through this feature, everything is automated, from calculating sales tax through recording, and then processing it. However, there might be extra fees if you do not include this feature in the plan you chose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to assist you with your accounting issues. The orders you place through your online channels can be combined into a single dashboard via this platform. From there you and your team will have access to all the information you require, including an inventory of your transactions, reports, and data.
The most appealing aspect of this option is the fact that it lets you to update automatically every day. Not only can they help you know how much you’ve collected, but they also help you keep track of when the next payments are due.
Their dashboard also allows users to view in detail the total sales tax for your business. You can also export the data in the form of a CSV file, if you want to use it to aid in accounting and financial planning processes or if you require it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping the track of all your sales channels. 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 will help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance can help you allocate your funds better. You’ll be aware of the budget you have to cover other operating expenses.
What’s more is that TaxJar provides training and tutorials, not just on their platform, but for anything that has to do with sales tax. You can look through their webinars, guides and blog for more details. Additionally their sales tax calculator can be 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. Some platforms provide amazing features, but they can be too costly for your business. That’s why for this section, we’ll look into TaxJar’s pricing tiers and what each of these options can offer you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They say it’s the most effective plan if you need help with filing requirements or reporting. It comes with taxes on sales and sales as well as four free yearly AutoFiles, and the option of a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a smaller business manager, the plan will be ideal for you. It might not include all of TaxJar’s features however, it does include the essentials that you need.
You can also contact their customer support via their email support chart. You’ll also have access to their integration tools.
If you’re looking to get that is more than the basic features Professional could be the one for you. The price starts at $99 however, it could go up by adding custom features.
So how different is it from the starter plan?
In addition to accessing all of the Starter plan’s features, you also have the support of their customer service via phone, API access, and sophisticated CSV import. They also allow you to have 12 free AutoFiles each year.
If you run a large enterprise, you may want to go for an upgrade instead. It includes all of the features that you require to help with your taxes. Additionally, they permit unlimited data import integrations as well as Integrations with APIs, teams of members and AutoFiles.
They also have a team dedicated in managing your accounts. But, they don’t divulge how much the Premium plan costs you. TaxJar For Small Startups Online Merchants
However, they did say that this plan is tailor-fit for every user. Therefore, the cost will differ in line with what you require for your business.
It’s a good thing that you don’t have to bet your life on it to determine if this service is 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 determine whether the service is an excellent fit for you.
Pros and Pros and
After we’ve gone over everything you need to know about TaxJar let’s take a breather. In order to sum up the whole thing, here are the pros and cons of the use of TaxJar to run your business.
- There is the Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms
- Allows you to track multiple 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
- Needs accountants and owners to check local legislation
The Final Verdict
With everything clearly laid out TaxJar provides a fantastic platform to businesses with many sales channels and utilizes many platforms. If this sounds like the way you’re doing, then must try TaxJar.
Not only can it aid in tracking the sales and profits of your business, but it can help you meet your deadlines. It is also a great option for accountants as they provide the Tax Advisor program. There are tips to follow and get knowledge from their seminars regarding taxes via it.
Utilizing TaxJar can allow you to reduce time and keep on top of each deadline and obligation you have to fulfill. If you live in an area with complex tax laws, this will definitely help you get your head around it. TaxJar For Small Startups Online Merchants
But if handling your taxes is simple and straightforward, then TaxJar may be an unnecessary investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of all of it. If you find the entire procedure simple to follow and you’re comfortable with it, you may be better to do it by yourself.
FAQ TaxJar For Small Startups Online Merchants
Which areas does TaxJar offer API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All transaction amounts are n USdollars. If you’re using another currency, you’ll have to convert it to US$ before TaxJar will calculate your tax.