Taxes are always one of the hardest things to do, whether you’re running your own business or not. More so if you don’t have a degree in finance or accounting. Tax-related tasks can be overwhelming, especially when you’re full of things to be done. If you don’t have the funds to hire an accountant, performing the task on your own could be dangerous. If you overlook one thing and you don’t know it, you may have to redo things again!
Almost everyone wants to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
So what can we do ?
We can make our lives easier by using tools like TaxJar.
Here we’ll take a look at this popular life-saving tool and how it can benefit you. Although this is quite a long read but you’ll be able to assess whether TaxJar is the tool you require today.
Prefer to watch videos instead? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What is TaxJar? TaxJar Manually File
Founded in 2013, TaxJar is an application that automatizes your filings, reports, and sales tax calculations. It’s a solution for your entire sales tax life cycle. In addition, you can apply it across all of your sales channels to make sure you’re in compliance with sales tax requirements. It streamlines processes that take days to complete and is completed in just a few just a few minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by owners of online businesses to keep everything neat and simple. Let’s look into the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to ensure you have a tax accounting platform seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to ensure that everything is in order. The most important thing is not to get a penalty for not paying attention to a minor thing.
TaxJar allows you to display your most important metrics in one place. That way, there’s no need to collect data from different channels and then organize it on one platform. All you have to do is connect TaxJar it will take care of the rest.
Other than that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows customers to submit their sales tax manually or through the AutoFile feature. In the purpose of this article, we’ll dig at both.
If you opt to go it alone, TaxJar will allow you to connect your sales platforms. When it comes time to filing tax returns for income TaxJar will train you on managing them. It is up for you and your staff to finish the tax returns on time. TaxJar is there to guide you on what you should do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. Through this feature, everything will be automated, from calculating sales taxes in order to record and process it. There could be extra fees if not part of the plan you choose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to ease your accounting woes. The orders you place through your online channels can be combined into a single dashboard via this platform. Once you’re on the platform, you and your team will have access to everything you require, including a list of your transactions, reports, as well as the data.
The greatest benefit of this feature is that it lets you to automatically update every day. They not only let to know the amount you’ve collected, but they also help you determine when your next payments are due.
Their dashboard also allows you to see the sales tax totals in your business. You can also export the information as CSV format. CSV file in case you require it for your financial planning and accounting processes or if your team requires it for central reporting.
Training and Streamlining
TaxJar helps organize and keep track of all of your sales channels. This means that you don’t have to scramble for your documents whenever you’re in a pinch. Even when you already have your accounting firm, the feature can aid them in being more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll be aware of the budget you have for other operating costs.
What’s more is that TaxJar offers training and tutorials not only for their platform , but also for anything that has to do with sales tax. You can check out their webinars, guides, as well as their blog to find more information. In addition, their sales tax calculator is beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to set your budget. Certain platforms have amazing features, but they’re sometimes too costly for your business. For this reason we’ll take a look at TaxJar’s pricing structures and what each of those plans can offer. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. They claim that it’s the most effective plan to help you in filing and reporting. It also includes the tax on sales, 4 annual AutoFiles for free, as well as an CSV import. Even with the basic plan, you have access to their AI tax advice.
If you’re a small-scale company proprietor, then this program will be ideal for you. It may not have all the features offered by TaxJar but it comes with the essentials that you need.
In addition, you can reach their customer support via their support chart for email. Additionally, you’ll have access to their integration tools.
If you’re looking for something a bit more than just the basics Professional might be the right one for you. It starts at $99, but you can increase it by adding custom features.
What is the difference from the basic plan?
Apart from having access to all of the Starter plan’s features, you also have their support via phone, API access, and sophisticated CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you own a huge company, you may need to choose premium plans instead. It includes all of the features you need to make your tax filing easier. Additionally, they permit unlimited data import integrations, API integrations, team members and AutoFiles.
There is also a team dedicated for managing the account. They don’t reveal how much the Premium plan will cost you. TaxJar Manually File
However, they did say that the plan is custom-made for every user. The cost of the plan will be different depending on what you need for your business.
Luckily, you don’t have to risk your money to determine if this service is for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to determine whether the software is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a break. To summarize Here are the advantages and disadvantages of the use of TaxJar for your business.
- There is the 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
- It offers a free trial of 30 days.
- 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
- Certain countries will not have access to the API feature.
- Only applicable to 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 with 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 the sales and profits of your business however, it will help you meet the deadlines you set. This is also an excellent option for accountants as they provide tax Advisor program. There are tips to follow and learn from their sessions on taxes by using it.
The use of TaxJar will help you get more done while keeping the track of each deadline or requirement you need to meet. If you’re in a place with complicated tax laws, this can certainly help you to get your head around the subject. TaxJar Manually File
If handling your taxes is straightforward and straightforward, then TaxJar may be an unnecessary expense. If you only have one or two channels for sales, TaxJar won’t be needed to keep track of all of it. If you find the entire procedure simple to follow, you might be better in doing it all on your own.
FAQ TaxJar Manually File
Which areas does TaxJar provide API assistance?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify with TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transaction amounts are n US$. If you’re using another currency, you’ll need to convert it to USdollars before TaxJar can calculate your tax.