Taxes are always one of the hardest things to do, whether you’re running your own business or not. Particularly if you don’t have a degree in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re full of things to be done. If you don’t have the funds to hire an accountant, making it your own can be risky. If you miss one detail, you might have to do it all over again!
Nearly everyone would prefer to skip this step. But since it’s required, we have no choice.
So what can we do about it?
It is always possible to make our lives easier by using tools like TaxJar.
We’ll look at this life-saving device and how it can assist you. Even though this is an extensive read but you’ll be able to gauge whether TaxJar is the tool you require right now.
Do you prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
For those who like to read, then let’s get right into it.
What is TaxJar? TaxJar Merchants
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 your entire sales tax life cycle. Additionally, you can use it in all of your sales channels to make sure you’re in compliance with sales taxes. It makes the process simpler that could require days to complete and finish within only a few minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is used extensively by owners of online businesses to ensure that everything is neat and simple. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the most important things you’ll need to make sure you have a tax accounting software perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you must maintain everything in line. The final thing you would like is to be penalized for overlooking just one minor detail.
TaxJar lets you display your most important data in one location. This means that there is no need to gather data in multiple channels and organize it into one platform. All you need to do is connect TaxJar then the system will do all the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows customers to make sales tax filings either manually or via TaxJar’s AutoFile feature. For our review we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect those sales tools. Once the time comes for the filing of income tax returns 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 within the timeframe. TaxJar will only provide guidance on what you should accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit all forms by hand. This feature will ensure that everything is automated, from calculating taxes on sales to recording and processing them. There could be additional charges if they are you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting issues. The orders you place through your online channels can be compiled into a single dashboard via this platform. From there you and your staff will have access to everything you need, such as the list of transactions, reports and data.
The greatest benefit of this option is the fact that it allows you to update your account automatically each day. Not only can they help you keep track of how much you’ve collected, but they also help you determine when your next payment is due.
The dashboard allows users to view in detail the sales tax totals in your business. Additionally, you can export the information in the form of a CSV file if you need it for your financial planning and accounting processes or if you require it to run centralized reports.
Training and Streamlining
TaxJar helps you organize and keep the track of all the sales avenues you use. That means you won’t have to hunt for your paperwork whenever you’re in the event of a need. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your funds better. You’ll know better how much budget you have to cover other operating expenses.
But what’s even better is that TaxJar provides training and tutorials not only on their platform, but all things connected to sales tax. Check out their webinars, guides, as well as their blog to find more information. In addition their sales tax calculator is helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms offer superb features, but they can be too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and what each of those choices can provide you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They claim that it’s the most effective plan for those who need assistance with filing requirements and reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as a CSV import. With the starter plan, you will be able to access their AI tax advice.
If you’re a smaller business proprietor, then this program could be ideal for you. It may not offer all the features offered by TaxJar, but it has the essentials that you need.
You can also contact their support team with their support chart for email. You’ll also be able to use their integration tools.
If you’re looking for something different from the standard features, then the Professional plan may be the best option for you. The price starts at $99 but it can go higher if you add custom features.
How different is it from the basic plan?
In addition to having access to every one of Starter plan’s features, you also get access to their phone customer support, API access, and the ability to do advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you run a large company, you may need to go for an upgrade instead. It includes all of the features needed to make your tax filing easier. Moreover, they allow unlimited data import integrations, API integrationsfor team users as well as AutoFiles.
They also have a staff that is devoted for managing the account. However, they don’t disclose how much the Premium plan is going to cost. TaxJar Merchants
However, they did say that the plan is custom-made for every user. Therefore, the cost will differ in line with what you require to run your business.
Luckily, you don’t have to bet your life on it to determine if this service is right for you. If you’re still considering other options, they have the opportunity to try a free trial for 30 days. This should give you enough time to determine whether the service is the right choice for you.
Pros and Pros and
We’ve covered everything you should know about TaxJar let’s take a break. To summarize we’ll go over the advantages and disadvantages of making use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- 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 for USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes numerous platforms. If that sounds like what you’re doing, then you ought to try this.
Not only will it aid in tracking your revenue and products, but it can help you meet your deadlines. It’s also an excellent opportunity for accountants since they have the Tax Advisor program. There are tips to follow and learn from their sessions about taxes through it.
Utilizing TaxJar can help you save more time while keeping the track of each deadline and obligation you have to fulfill. If you’re in a place with complicated tax laws, this will certainly help you to get your head around it. TaxJar Merchants
However, if managing your taxes is simple and straightforward, then TaxJar might not be a good investment. If you only have one or two channels for sales, TaxJar won’t be needed to track all of it. Moreover, if you find the whole procedure simple to follow, you might be better to do it by yourself.
FAQ TaxJar Merchants
What are the areas in which TaxJar provide API assistance?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together with TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. The transaction amounts are n US$. If you’re using a different currency, you’ll have to convert it to US$ before TaxJar will calculate the tax.