Taxes are always one of the hardest things to do regardless of whether you run a business or not. Particularly if you don’t have any experience in finance or accounting. Tax-related issues can be overwhelming, particularly when your whole day is full of things to be done. In the event that you do not have the funds to hire an accountant, doing it on your own can be risky. If you overlook one thing it could mean you need to repeat the process!
Nearly everyone would prefer to skipping 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?
It is always possible to make life easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can help you. Although this is quite an extensive read but you’ll be able to assess whether TaxJar is what you need today.
Prefer to watch videos instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
For those who like to read, let’s get right into it.
What is TaxJar? TaxJar Github
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. It is a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it in all of your channels of sales to ensure compliance with your sales taxes. It makes the process simpler that could require days to complete and is completed in just a few minutes.
TaxJar has been used in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to make their business more simple and organized. Let’s take a look at their features and services.
Services and features
One of the most important things you’ll need to make sure is your tax-reporting software is compatible with your sales channel. If you’re using multiple sales channels, you must keep everything in place. The most important thing is not to get a penalty for not paying attention to a minor thing.
TaxJar allows you to show your critical metrics in one place. This means that there is no need to gather data in multiple channels and then organize it on one platform. All you need to do is integrate TaxJar, it will handle the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list highlighting the platforms they can integrate with:
TaxJar allows customers to make sales tax filings manually or through the AutoFile feature. For our review we’ll look into both.
If you opt to do it manually, TaxJar will allow you to connect all of those sales tools. When the time is right for filing tax returns for income TaxJar will train you on how to handle the tax returns. However, it will be up for you and your team to finish the tax returns on time. TaxJar is there to guide you on what you have to do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out the forms in a manual manner. This feature will ensure that everything will be automated, from calculating sales taxes to recording and processing them. However, there might be extra fees if not part of the plan you choose.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to assist you with your accounting issues. All orders made through your e-commerce channels can be combined into one dashboard using this platform. Once you’re on the platform, you and your team will have access to everything you need, such as the list of transactions, reports and the data.
The most appealing aspect of this feature is that they allow you to automatically update every day. They not only let you keep track of how much you’ve collected and how much you’ve earned, but they also let you determine when your next payment is due.
The dashboard allows users to view in detail the overall sales taxes within your company. Additionally, you can export the information to the form of a CSV file, if you want to use it in your process of financial planning and accounting or if you require it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the channels you sell through. This means that you don’t have to scramble for your documents when you need them when you’re in a pinch. Even even if you already have an accountant, this function can make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your money more efficiently. You’ll know better how much budget you have for other operational costs.
What’s more is that TaxJar offers tutorials and training not only for their platform but for anything related to sales tax. You can look through their webinars, guides, and blog for more details. Additionally the sales tax calculator can be helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms offer superb features, but they can be too expensive for businesses. For this reason we’ll examine TaxJar’s pricing structures and the features that each of these plans can offer. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. They claim that it’s the most suitable plan for you if you need help with filing requirements and reporting. It also includes sales tax reporting, 4 annual AutoFiles for free, as well as a CSV import. Even with the basic plan, you will be able to access their AI tax tips.
If you’re a small business manager, the plan should be ideal for you. It might not include all of TaxJar’s features, but it has the basic features you require.
Additionally, you can contact their customer support via their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking to get a bit more than just the standard features, then the Professional plan could be the one for you. It starts at $99, but you can increase it by adding custom features.
How different is it from the starter plan?
Apart from having access to all of the 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. Additionally, they allow you to receive 12 free AutoFiles every year.
If you have a massive business, you might need to opt for the Premium plan instead. It has all of the features you need to aid in your tax preparation. In addition, they offer unlimited import integrations of data API integrations, team users and AutoFiles.
They also have a staff who are devoted in managing your accounts. However, they don’t disclose the price of the Premium plan. is going to cost. TaxJar Github
However, they did mention that the plan is custom-made for every user. So the costs will vary in line with what you require to run your business.
It’s a good thing that you don’t have to risk your money to see if this platform is right for you. If you’re still looking into different options, they offer 30 days of free trial. This should be enough time to gauge if the platform is a good fit for you.
Pros and Cons
We’ve covered everything you must know about TaxJar let’s take a breather. To sum it all up, here are the advantages and disadvantages of the use of TaxJar for your business.
- Has a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Support Service Team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- 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
- Certain countries will not have access to the API feature
- Only valid for USA customers
- Needs accountants and owners to check local legislation
The Final Verdict
With everything laid down, TaxJar can be a great platform companies that have multiple sales channels and uses many platforms. If that’s what you’re doing, then you should try this.
Not only will it aid in tracking the sales and profits of your business It can assist you in meeting the deadlines you set. It’s also an excellent opportunity for accountants since they offer the Tax Advisor program. There are tips to follow and gain knowledge from their workshops about taxes through it.
Using TaxJar will help you get more done while keeping the track of each deadline or requirement you need to fulfill. If you live in a region with a lot of tax laws, this will surely help you wrap your mind around it. TaxJar Github
If handling taxes is easy If it isn’t, then TaxJar may be an unnecessary expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to track all of it. Moreover, if you find the entire procedure easy to complete then you’re better in doing it all on your own.
FAQ TaxJar Github
What areas does TaxJar offer API support?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All transactions are in USdollars. If you’re using a different currency, you will need to convert it to US$ prior to when TaxJar determines the tax.