Taxes are always one of the most difficult things to handle, whether you’re running your own business or not. More so if you don’t have a background in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re packed with things to do. When you’re not able to afford enough money to employ an accountant, doing it on yourself can be dangerous. If you overlook one thing and you don’t know it, you may have to do it all over again!
Most people want to skip this step. But since it’s required and mandatory, there’s no other choice.
So , what is the best way to deal with it?
We can always make our lives easier by using tools like TaxJar.
We’ll look at this popular life-saving tool and explain how it can help you. Although this is quite an extensive read it is possible to determine if TaxJar is what you need right now.
Prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
But for those who prefer to read, let’s get right into it.
What is TaxJar? TaxJar Magento Only Collect In Certain States
The company was founded in 2013 TaxJar is an application that automatizes your reporting, filings and sales tax calculation. TaxJar is a solution to the entire life cycle. Additionally, you can use it in all of your sales channels to ensure compliance with 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 has been utilized in various industries like food and beverage companies, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is widely used by business owners who run online businesses to make their business more neat and simple. Let’s look into the features and services offered by TaxJar.
Features and services
One of the most important things you’ll need to make sure is your tax-reporting platform is compatible along with sales funnels. If you’re selling through multiple channels, it is essential to keep everything in place. The most important thing is not to be penalized for overlooking just one minor detail.
TaxJar allows you to show your key metrics in one spot. So, there’s no need to collect data from different channels and organize it into one platform. All you need to do is integrate TaxJar and the platform will take care of the rest.
In addition, TaxJar also integrates with other platforms that help with payment processing. Here’s a list of platforms that they can connect with:
TaxJar lets customers file their sales taxes by hand or using the AutoFile feature. For this review, we’ll dig at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all your sales platforms. When it comes time to filing tax returns for income The team will guide you on managing these. It is up to you and your team members to complete the process within the timeframe. TaxJar is there to help you understand what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. With this feature, everything will be automated, from calculating sales tax through recording, and then processing them. But, it is possible to incur additional charges if they are you do not include this feature in the plan you chose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to ease your accounting problems. All orders made through your e-commerce channels can be combined into one dashboard using this platform. From there you and your staff will have access to everything you need, such as a list of your transactions, reports, as well as the data.
The best part about this feature is that it lets you to automatically update every day. Not only will they let to know the amount you’ve earned however, they can also help you track when your following payment is due.
Their dashboard can also allow you to fully view the sales tax totals within your company. It is also possible to export the information to CSV format. CSV file, if you want to use it in your process of financial planning and accounting or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep on top of all the channels you sell through. That means you won’t have to search for your documents when you’re in a pinch. Even when you already have your accounting firm, the feature can make them more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will allow you to allocate your funds more effectively. You’ll know better how much budget you have for other operational costs.
What’s more is that TaxJar offers training and tutorials, not just for their platform , but also all things connected to sales tax. Check out their guides, webinars, as well as their blog to find more info. Additionally, their sales tax calculator is helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb features, but they’re sometimes too expensive for businesses. For this reason we’ll take a look at TaxJar’s pricing levels and the features that each of these choices can provide you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the most effective plan for those who need assistance with filing requirements or reporting. It also includes taxes on sales and sales as well as 4 free yearly AutoFiles, and a CSV import. Even with the basic plan, you will be able to access their AI tax advice.
If you’re a small business manager, the plan will be perfect for you. It might not include all the features of TaxJar but it comes with the basic features you require.
In addition, you can reach their customer support via their email support chart. You’ll also be able to use their integration tools.
If you’re looking for something a bit more than just the basic features Professional might be the right one for you. It’s priced at $99 but it can go higher when you add additional features.
How different is it from the starter plan?
In addition to accessing every one of Starter plan’s options, you also have access to their phone customer support Access to APIs, phone support, and the ability to do advanced CSV import. You can also receive 12 free AutoFiles every year.
If you run a large enterprise, you may want to opt for the Premium plan instead. It includes all of the features needed to help with your taxes. Additionally, they permit unlimited import integrations of data API integrations, team members, and AutoFiles.
They also have a team that is devoted for managing the account. However, they don’t disclose the price of the Premium plan. costs you. TaxJar Magento Only Collect In Certain States
But they did state that this plan is tailor-fit for every user. The cost of the plan will be different depending on what you need for your business.
Fortunately, you don’t need to risk your money to find out if the platform 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 determine whether the software is a good fit for you.
Pros and Cons
Now that we’ve covered all you should be aware of TaxJar let’s take a break. To sum it all up, here are the pros and cons of using TaxJar for your company.
- Has a Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is able to 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 have access to the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid down, TaxJar is an excellent platform for businesses with multiple sales channels and uses numerous platforms. If that’s what you do, then you must try TaxJar.
Not only will it assist you in keeping track of your revenue and products however, it will assist you in meeting the deadlines you set. This is also an excellent option for accountants as they offer tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
Using TaxJar can help you save more time while keeping the track of each deadline or requirement you need to fulfill. If you live in a region with a lot of tax regulations, this will certainly help you to get your mind around it. TaxJar Magento Only Collect In Certain States
However, if managing your taxes is simple and straightforward, then TaxJar could be a waste of investment. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track everything. Moreover, if you find the whole procedure simple to follow, you might be better in doing it all by yourself.
FAQ TaxJar Magento Only Collect In Certain States
What are the areas in which TaxJar offer API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions’ amounts are in US$. If you’re using a different currency, you’ll have to convert it into USUSD prior to when TaxJar determines your tax.