Taxes are always one of the hardest things to do 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 work can be overwhelming, particularly when you’re filled with tasks to complete. If you don’t have the funds to hire an accountant, making it your own can be dangerous. If you overlook one thing it could mean you have to do it all over again!
Nearly everyone would prefer to skipping this step. But since it’s required and mandatory, there’s no other choice.
What is the best way to deal with it?
We can make life easier with tools such as TaxJar.
This article will take a look at this popular life-saving tool and explain how it can help you. While this is an extensive read but you’ll be able to assess whether TaxJar is what you need today.
Are you looking video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
But for those who prefer to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Is Software Taxable
Founded in 2013, TaxJar is a platform that helps automate your reports, filings, and sales tax calculations. It is a solution for the entire life cycle. Additionally, you can use it across all the sales channels you use to make sure you’re in compliance with sales tax requirements. It simplifies the processes that require days to complete and can be completed in a matter of only a few minutes.
TaxJar is used in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by online business owners to make their business more organized and straightforward. Let’s explore their features and services.
Features and services
One of the most important things you’ll need to ensure is that your accounting tax software perfectly integrates with your sales channel. If you have multiple sales channels, you must maintain everything in line. The final thing you would like is to face a penalty due to overlooking just one minor detail.
TaxJar lets you display your most important metrics in one spot. So, there’s no need to collect data from different channels and organize it into a single platform. All you have to do is to integrate TaxJar and the platform will take care of all the rest.
Apart from that, TaxJar also integrates with other platforms that help with payment processing. Here’s a list of the platforms they are able to integrate with:
TaxJar allows clients to file their sales taxes either manually or via their AutoFile feature. For this review, we’ll take a look into both.
If you opt to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. When it comes time to filing income tax returns The team will guide you on how to handle the tax returns. But, it is up to you and your staff to complete everything on time. TaxJar is there to guide you on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit any forms manually. Through this feature, everything is 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 choose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be put together into one dashboard using this platform. Once you’re on the platform, you and your team can access everything you require, including an inventory of your transactions, reports, as well as information.
The greatest benefit of this option is the fact that it lets you to automatically update every day. Not only will they let you know how much you’ve collected, but they also help you track when your following payment is due.
The dashboard allows you to see the total sales tax within your company. You can also export your data in a CSV file if you need it in your financial planning and accounting processes or if your team requires it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep on top of all the sales avenues you use. This means that you don’t have to hunt for your paperwork whenever you’re when you’re in a pinch. Even even if you already have an accountant, this feature will aid them in being more efficient.
Additionally, knowing the figures for the sales tax you pay in advance can help you allocate your funds better. You’ll be aware of the budget you have to cover other operational expenses.
What’s more is that TaxJar offers training and tutorials and tutorials, not just for their platform , but also all things related to sales tax. Check out their guides, webinars, and blog for more info. Additionally, their sales tax calculator should 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 provide amazing features, but they can be too expensive for businesses. This is why in this section, we’ll look into TaxJar’s pricing tiers and what each of these options can offer you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. They say it’s the most effective plan if you need help in filing and reporting. It comes with sales tax reporting, four autofiles for free each year, and a CSV import. With the starter plan, you will be able to access their AI tax tips.
If you’re a smaller business manager, the plan could be perfect for you. It might not include all the features of TaxJar but it comes with the basic features you require.
You can also contact their support team with their support chart for email. You’ll also have access to their integration features.
If you’re looking to get different from the basic features and options, then the Professional plan might be the right one for you. It starts at $99, but it can go higher by adding custom features.
So how different is it from the original plan?
In addition to accessing all of the Starter plan’s features, you also get access to the support of their customer service via phone access to APIs, as well as sophisticated CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you own a huge business, you might need to choose an upgrade instead. It has all of the features needed to help with your taxes. Additionally, they permit unlimited import integrations of data as well as API integrations, team members, and AutoFiles.
They also have a team who are devoted to managing your account. However, they don’t disclose how much the Premium plan will cost you. TaxJar Is Software Taxable
However, they did mention that this plan is customized for each user. Therefore, the cost will differ in line with what you require to run your business.
Fortunately, you don’t need to gamble your money just to see if this platform is for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. It should give you enough time to gauge if the platform is an excellent fit for you.
Pros and Cons
After we’ve gone over everything you should know about TaxJar Let’s relax. To sum it all up, here are the advantages and disadvantages of the use of TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features 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
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only valid for USA customers.
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid out TaxJar provides a fantastic platform to companies that have numerous sales channels, and that utilizes many platforms. If that’s what you do, then you ought to try this.
Not only can it assist you in keeping track of your revenue and products however, it will assist you in meeting your deadlines. It’s also an excellent platform for an accountant since they have tax Advisor program. You can get tips and learn from their sessions about taxes through it.
The use of TaxJar can allow you to save more time while keeping track of every deadline and requirement you have to fulfill. If you’re living in an area with complex tax laws, this will definitely help you get your head around the subject. TaxJar Is Software Taxable
If handling your taxes is straightforward If it isn’t, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to track everything. In addition, if you’re finding the entire procedure simple to follow, you might be better in doing it all on your own.
FAQ TaxJar Is Software Taxable
What areas does TaxJar provide API support?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can connect your Shopify account to TaxJar to make it easier to monitor and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in US$. If you’re using a different currency, you’ll have to convert it to USUSD prior to when TaxJar can calculate the tax.