Taxes have always been one of the most difficult things to handle regardless of whether you run your own business or not. Even more so if you do not have a degree in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is filled with tasks to complete. In the event that you do not have the funds to engage an accountant performing the task on your own could be dangerous. If you miss one detail, you might need to repeat the process!
Almost everyone wants to avoid this step. However, since it’s mandatory and mandatory, there’s no other choice.
What is the best way to deal with it?
We can always simplify our lives by using tools like TaxJar.
Here we’ll take a look at this popular life-saving device and how it can assist you. Although this is quite a long read, you should be able to gauge whether TaxJar is what you need in the present.
Are you looking video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
For those who like to read, then we’ll dive right into.
What is TaxJar? TaxJar Origin Vs Destination Based
The company was founded in 2013 TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculation. It’s a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it across all of your channels of sales to ensure compliance with sales taxes. It makes the process simpler that could require days to complete and can be completed in a matter of only a few minutes.
TaxJar is used in various industries like food and beverage companies, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is used extensively by online business owners to ensure that everything is simple and organized. Let’s take a look at their features and services.
Services and features
One of the first things you’ll need to ensure is your tax-reporting platform perfectly integrates with your sales channel. If you’re selling through multiple channels, it is essential to maintain everything in line. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar allows you to show your key metrics in one place. That way, there’s no need to collect information from multiple sources and sort it into one platform. All you have to do is connect TaxJar, then the system will handle the rest.
Other than that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms they can integrate with:
TaxJar allows customers to make sales tax filings manually or through their AutoFile feature. In our review we’ll take a look into both.
If you decide to do it manually, TaxJar will allow you to connect those sales tools. When it comes time to filing tax returns for income TaxJar will train you on how to handle the tax returns. It is up for you and your staff to complete the process on time. TaxJar will only guide you on what you have to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything will be automated from calculating sales tax in order to record and process them. But, it is possible to incur additional costs if the feature is not part of the plan you select.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to assist you with your accounting problems. The orders you place through your online channels can be combined into one dashboard using this platform. From there you and your staff will have access to everything you need, like a list of your transactions, reports, as well as the data.
The most appealing aspect of the feature you’ve chosen is it lets you to automatically update every day. Not only can they help to know the amount you’ve collected however, they can also help you determine when your next payments are due.
The dashboard allows users to view in detail the sales tax totals for your business. It is also possible to export your data in CSV format. CSV file in case you require it in your accounting and financial planning processes or if your team requires it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep the track of all the channels you sell through. That means you won’t have to scramble for your documents when you’re in the event of a need. Even even if you already have an accountant, this function can aid them in being more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will help you plan your funds more effectively. You’ll know better how much budget you have to cover other operational costs.
The best part is that TaxJar offers training and tutorials, not just on their platform, but all things that has to do with sales tax. You can check out their guides, webinars, or blog posts for additional details. In addition the sales tax calculator is helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms provide amazing features, but they’re sometimes too costly for your business. That’s why for this section, we’ll look into TaxJar’s pricing levels and what each of those options can offer you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan is priced at $19. The company claims that it’s the best plan for those who need assistance in filing and reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as an CSV import. With the starter plan, you can access their AI tax recommendations.
If you’re a small business proprietor, then this program will be perfect for you. It might not include all the features of TaxJar, but it has all the basics you require.
In addition, you can reach the support team via their email support chart. You’ll also have access to their integration capabilities.
If you’re looking to get different from the basic features Professional may be the best option for you. The price starts at $99 but you can increase it when you add additional features.
How different is it from the starter plan?
Apart from having access to each of Starter plan’s features, you also get access to the support of their customer service via phone access to APIs, as well as advanced CSV import. You can also have 12 free AutoFiles each year.
If you have a massive company, you may need to go for the Premium plan instead. It includes all of the features needed to make your tax filing easier. In addition, they offer unlimited integrations with data imports as well as Integrations with APIs, teams of members and AutoFiles.
There is also a team that is devoted for managing the account. However, they don’t disclose the amount that the Premium plan costs you. TaxJar Origin Vs Destination Based
However, they did mention that this plan is customized for every user. Therefore, the cost will differ depending on what you need for your company.
It’s a good thing that you don’t have to gamble your money just to determine if this service is for you. If you’re still considering various options, they provide a 30-day free trial. This should be enough time to see if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you must 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 company.
- Has a Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers Taxes on sales online calculator.
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- 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 clearly laid out TaxJar provides a fantastic platform to companies with multiple sales channels and uses numerous platforms. If this sounds like the way you do, then you ought to try this.
Not only can it help you track your products and revenue however, it will assist you in meeting the deadlines you set. It is also a great option for accountants as they have a Tax Advisor program. You can find tips and gain knowledge from their workshops about taxes through it.
The use of TaxJar can help you save more time while keeping on top of each deadline and requirement you have to meet. If you’re in a region with a lot of tax regulations, this will surely help you wrap your head around the subject. TaxJar Origin Vs Destination Based
But if handling your taxes is straightforward and straightforward, then TaxJar might not be a good expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. If you’re finding the entire process easy to do and you’re comfortable with it, you may be better off doing it by yourself.
FAQ TaxJar Origin Vs Destination Based
What are the areas in which TaxJar provide API assistance?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Can I connect Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions’ amounts are in US$. If you’re using a different currency, you’ll need to convert it into USdollars before TaxJar will calculate your tax.