Taxes are always one of the most difficult tasks to complete, whether you’re running an enterprise or not. More so if you don’t have a background in finance or accounting. Tax-related tasks can be overwhelming, particularly when you’re full of things to be done. When you’re not able to afford the budget to employ an accountant, performing the task on your own could be dangerous. If you miss one detail and you don’t know it, you may have to redo things again!
Almost everyone wants 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?
We can always make life easier by using tools like TaxJar.
We’ll look at this well-known life-saving tool and explain how it can benefit you. Even though this is a long read, you should be able to gauge whether TaxJar is exactly what you need in the present.
Prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive review of TaxJar’s features.
But for those who prefer to read, then let’s dive right in.
What is TaxJar TaxJar Magento Nexus In Multiple States
Founded in 2013, TaxJar is a platform that helps automate your reporting, filings and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it across all the sales channels you use to make sure you’re in compliance with sales tax requirements. It makes the process simpler that could require days to complete and finish within just a few minutes.
TaxJar has been used in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by online business owners to ensure that everything is neat and simple. Let’s explore their features and services.
Features and services
One of the first things you’ll need to make sure is that your accounting tax platform perfectly integrates with your sales channel. If you’re using multiple sales channels, you must keep everything in place. The final thing you would like is to face a penalty due to missing a single minor point.
TaxJar allows you to show your key metrics in one spot. This means that there is no requirement to collect data in multiple channels and sort it into one platform. All you have to do is connect TaxJar, then the system will handle the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list highlighting the platforms they can integrate with:
TaxJar lets customers make sales tax filings either manually or via their AutoFile feature. In the purpose of this article, we’ll dig at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect those sales tools. When it comes time to the filing of income tax returns, the team will instruct you on managing them. However, it will be up for you and your team members to complete the process in time. TaxJar is there to provide guidance on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit any forms manually. With this feature, everything is automated, from calculating taxes on sales through recording, and then processing them. There could be extra fees if not included in the plan you select.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be compiled into a single dashboard via this platform. Once you’re on the platform you and your staff will have access to all the information you need, such as a list of your transactions, reports and information.
The best part about this option is the fact that they allow you to automatically update every day. Not only can they help you keep track of how much you’ve earned and how much you’ve earned, but they also let you determine when your next payment is due.
The dashboard allows you to see the sales tax totals for your business. Additionally, you can export the data in a CSV file if you need it in your financial planning and accounting processes or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all the channels you sell through. It means you don’t need to search for your documents whenever you’re when you’re in a pinch. Even if you already have your accountant, this function can make them more efficient.
Moreover, knowing the estimates for your sales tax ahead of time can help you allocate your money more efficiently. You’ll be aware of the budget you have for other operating expenses.
What’s more is that TaxJar offers training and tutorials not only on their platform, but for anything that has to do with sales tax. You can look through their webinars, guides, and blog for more info. Apart from that the sales tax calculator should be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to determine your budget. Certain platforms have amazing features, but they’re sometimes too costly for the business you run. For this reason, we’ll look into TaxJar’s pricing tiers and what each of these choices can provide you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan starts at $19. The company claims that it’s the most suitable plan for you for those who need assistance with filing requirements and reporting. It includes taxes on sales and sales as well as 4 annual AutoFiles for free, as well as an CSV import. Even with the basic plan, you will be able to access their AI tax advice.
If you’re a small company manager, the plan should be perfect for you. It might not include all the features of TaxJar however, it does include the basic features you require.
You can also contact the support team via their email support chart. You’ll also be able to use their integration tools.
If you’re looking to get different from the basic features and options, then the Professional plan may be the best option for you. It starts at $99, but it can go higher by adding custom features.
How different is it from the original plan?
Apart from having access to every one of Starter plan’s features, you also get access to their phone customer support, API access, and advanced CSV import. You can also get 12 AutoFiles for free each year.
If you run a large enterprise, you may want to opt for the Premium plan instead. It includes all of the features you need to make your tax filing easier. Moreover, they allow unlimited integrations with data imports as well as API integrationsfor team users as well as AutoFiles.
There is also a team dedicated for managing the account. But, they don’t divulge the amount that the Premium plan will cost you. TaxJar Magento Nexus In Multiple States
However, they did mention that this plan is tailor-fit for each 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 gamble your money just to determine if this service is right for you. If you’re still looking into other options, they have a 30-day free trial. It should give you enough time to gauge if the platform is a good fit for you.
Pros and Pros and
After we’ve gone over everything you should be aware of TaxJar let’s take a break. To summarize we’ll go over the pros and cons of making use of TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides an online sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable to USA customers
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies that have many sales channels and utilizes numerous platforms. If this sounds like the way you’re doing, then should try this.
Not only can it assist you in keeping track of the sales and profits of your business, but it can also help you meet the deadlines you set. It’s also an excellent platform for an accountant since they provide the Tax Advisor program. You can find tips and get knowledge from their seminars regarding taxes via it.
The use of TaxJar will help you get more done while keeping on top of each deadline and obligation you have to fulfill. If you live in an area with complex tax regulations, this will definitely help you get your head around it. TaxJar Magento Nexus In Multiple States
If handling your taxes is straightforward, 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’re finding the entire process easy to do and you’re comfortable with it, you may be better to do it on your own.
FAQ TaxJar Magento Nexus In Multiple States
What areas does TaxJar offer API support?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All of the transactions’ amounts are in US$. If you’re using a different currency, you will need to convert it into USdollars before TaxJar determines the tax.