Taxes have always been one of the most difficult things to handle regardless of whether you run a business or not. Even more so if you do not have a degree in accounting or finance. Tax-related tasks aren’t easy, particularly when your whole day is packed with things to do. In the event that you do not have enough money to hire an accountant, doing it on yourself can be risky. If you miss one detail, you might have to redo things again!
Almost everyone wants to skipping this step. But , as it’s a requirement and mandatory, there’s no other choice.
What is the best way to deal with it?
We can always make life easier by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can benefit you. While this is an extensive read but you’ll be able to determine if TaxJar is exactly what you need right now.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
If you prefer to read, let’s get right into it.
What is TaxJar? TaxJar G2
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculation. TaxJar is a solution to all aspects of your sales tax cycle. Furthermore, you can utilize it across all of your sales channels to ensure compliance with sales tax requirements. It streamlines processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar has been used in various industries like 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 ensure that everything is 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 want to check is your tax-reporting system seamlessly works well in conjunction with the sales channels you use. If you’re using multiple sales channels, you need to keep everything in place. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to display your key data in one location. This means that there is no need to collect data in multiple channels and sort it into one platform. All you have to do is integrate TaxJar and the platform will take care of the rest.
In addition, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of the platforms that they can connect with:
TaxJar lets customers submit their sales tax by hand or using TaxJar’s AutoFile feature. In this review, we’ll take a look into both.
If you decide to go it alone, TaxJar will allow you to connect all of those sales tools. When the time is right for filing income tax returns TaxJar will train you on how to manage these. But, it is up to you and your team members to finish the tax returns on time. TaxJar is there to help you understand what you should do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything is automated, from calculating sales tax through recording, and then processing them. 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 ease your accounting problems. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. Once you’re on the platform, you and your team will have access to everything you need, such as a list of your transactions, reports and information.
The most appealing aspect of the feature you’ve chosen is they allow 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.
The dashboard allows you to fully view the sales tax totals in your business. It is also possible to export your data as the form of a CSV file, if you want to use it for your process of financial planning and accounting or if you require it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep the track of all the channels you sell through. It means you don’t need to scramble for your documents whenever you’re when you’re in a pinch. Even if you already have your accountant, this feature can aid them in being more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will allow you to allocate your money more efficiently. You’ll know better how much budget you have available for other operating costs.
But what’s even better is that TaxJar offers tutorials and training, not just for their platform but everything related to sales tax. Check out their guides, webinars, or blog posts for additional 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 are aware of how important it is to set your budget. Certain platforms have amazing capabilities, but they’re often too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing tiers and the features that each of these options can offer you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. The company claims that it’s the most suitable plan for you if you need help with filing requirements and reporting. It also includes sales tax reporting, four free yearly AutoFiles, and a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a smaller business owner, this plan should be ideal for you. It might not include all of TaxJar’s features however, it does include all the basics you require.
In addition, you can reach their support team with their support chart for email. Additionally, you’ll have access to their integration tools.
If you’re looking for different from the basic features and options, then the Professional plan could be the one for you. The price starts at $99 but it can go higher by adding custom features.
How different is it from the original plan?
In addition to accessing every one of Starter plan’s features, you also have the support of their customer service via phone, API access, and the ability to do advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you own a huge enterprise, you may want to go for an upgrade instead. It comes with all the features needed to make your tax filing easier. Moreover, they allow unlimited data import integrations API integrationsfor team members, and AutoFiles.
There is also a team dedicated to managing your account. But, they don’t divulge the price of the Premium plan. will cost you. TaxJar G2
But they did state that the plan is custom-made for every user. Therefore, the cost will differ depending on what you need for your business.
Fortunately, you don’t need to risk your money to determine if this service is the right one for you. If you’re still considering various options, they provide a 30-day free trial. It should give you enough time to determine if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you must know about 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 the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides an online sales tax calculator.
- Has support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms
- It allows you to monitor 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 valid for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to companies that have many sales channels and utilizes plenty of platforms. If this sounds like the way you’re doing, then ought to try this.
It’s not just a way to help you track your revenue and products It can also help you meet the deadlines you set. It’s also an excellent opportunity for accountants since they have a Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
Using TaxJar can help you reduce time and keep the track of each deadline and requirement you have to fulfill. If you live in a region with a lot of tax regulations, this will surely help you wrap your head around it. TaxJar G2
However, if managing your taxes is straightforward, then TaxJar could be a waste of expense. If you only have one or two channels for sales, TaxJar won’t be needed to track all of it. In addition, if you find the entire procedure easy to complete then you’re better in doing it all by yourself.
FAQ TaxJar G2
What areas does TaxJar offer API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Can I convert any kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All of the transactions’ amounts are in US$. If you’re using another currency, you’ll need to convert it into USUSD prior to when TaxJar determines your tax.