Taxes are always one of the most difficult things to handle regardless of whether you’re running a business or not. Particularly if you don’t have a background in finance or accounting. Tax-related work can be overwhelming, particularly when you’re full of things to be done. In the event that you do not have the budget 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 need to repeat the process!
Most people want to avoid this step. But , as it’s a requirement, we have no choice.
So what can we do about it?
We can always simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can help you. Although this is quite an extensive read but you’ll be able to gauge whether TaxJar is what you need in the present.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
But for those who prefer to read, let’s get right into it.
What is TaxJar TaxJar Pro
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it in all of your sales channels to ensure that you are in compliance with your sales taxes. It simplifies the processes that can take days to complete, and finish within just a few minutes.
TaxJar has been used in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is widely used by business owners who run online businesses 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 make sure is your tax-reporting platform is compatible along with sales funnels. If you have multiple sales channels, it is essential to ensure that everything is in order. The final thing you would like is to face a penalty due to overlooking just one minor detail.
TaxJar allows you to display your critical data in one location. So, there’s no requirement to collect data from different channels and then organize it on one platform. All you have to do is to integrate TaxJar, it will do the rest.
In addition, TaxJar also integrates with other platforms that can help with payments. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to file their sales taxes by hand or using TaxJar’s AutoFile feature. In this review, we’ll dig into both.
If you opt to go it alone, TaxJar will allow you to connect all of the sales channels you use. When it comes time to the filing of income tax returns The team will guide you on how to manage them. It is up to you and your team to complete everything on time. TaxJar will only provide guidance on what you need to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit all forms by hand. Through this feature, everything is automated, from calculating sales tax to recording and processing them. But, it is possible to incur extra fees if you do not include this feature in the plan you choose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to ease your accounting problems. All orders made through your e-commerce channels can be put together into a single dashboard via this platform. Once you’re on the platform you and your staff can access everything you need, such as the list of transactions, reports, and the data.
The best part about the feature you’ve chosen is they allow you to update your account automatically each day. Not only will they let to know the amount you’ve earned however, they can also help you keep track of when the next payments are due.
The dashboard allows you to fully view the overall sales taxes for your business. You can also export the data in a CSV file, if you want to use it in your process of financial planning and accounting or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar helps you organize and keep the track of all the sales avenues you use. This means that you don’t have to search for your documents when you need them in a pinch. Even if you already have your accountant, this feature will make them more efficient.
Additionally, knowing the figures for your sales tax in advance will help you plan your money more efficiently. You’ll know exactly how much budget you have to cover other operating expenses.
But what’s even better is that TaxJar offers tutorials and training not only on their platform, but all things related to sales tax. Check out their webinars, guides, as well as their blog to find more information. Apart from that the sales tax calculator can be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to set your budget. Some platforms offer superb features, but they’re sometimes too expensive for businesses. That’s why for this section we’ll take a look at TaxJar’s pricing levels and what each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan is priced at $19. They claim that it’s the most effective plan if you need help with filing requirements and reporting. It also includes sales tax reporting, four autofiles for free each year, and a CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a small-scale business manager, the plan will be perfect for you. It might not include all of TaxJar’s features however, it does include the essentials that you need.
You can also contact their support team with their email support chart. You’ll also have access to their integration tools.
If you’re looking for that is more than the standard features and options, then the Professional plan could be the one for you. The price starts at $99 however, it could go up when you add additional features.
How different is it from the basic plan?
In addition to having access to every one of Starter plan’s options, you also have access to the support of their customer service via phone, API access, and sophisticated CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you have a massive business, you might need to opt for premium plans instead. It comes with all the features that you require to help with your taxes. Moreover, they allow unlimited integrations with data imports API integrations, team members and AutoFiles.
There is also a team who are devoted to managing your account. They don’t reveal the amount that the Premium plan will cost you. TaxJar Pro
But they did state that the plan is custom-made to each user. The cost of the plan will be different depending on what you need for your company.
Luckily, you don’t have to risk your money to determine if this service is for you. If you’re still considering different options, they offer 30 days of free trial. It should give you enough time to gauge if the platform is the right choice for you.
Pros and Cons
After we’ve gone over everything you should be aware of TaxJar let’s take a breather. To summarize Here are 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 save time
- Available in most USA states
- Offers an online sales tax calculator.
- Support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms.
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only applicable to USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies with numerous sales channels, and that utilizes plenty of platforms. If that sounds like what you’re doing, then you must try TaxJar.
Not only will it help you track your products and revenue, but it can assist you in meeting your deadlines. It’s also an excellent opportunity for accountants since they have a Tax Advisor program. You can get tips and gain knowledge from their workshops about taxes through it.
Using TaxJar can help you get more done while keeping the track of each deadline or requirement you need to meet. If you’re in an area with complex tax regulations, this will definitely help you get your head around it. TaxJar Pro
If handling your taxes is simple and straightforward, then TaxJar may be an unnecessary expense. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. Moreover, if you find the entire procedure simple to follow and you’re comfortable with it, you may be better in doing it all by yourself.
FAQ TaxJar Pro
What are the areas in which TaxJar offer API support?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I integrate Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar to make it easier to monitor and updates.
Can I convert any kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. The transactions are in US$. If you’re using another currency, you’ll have to convert it to US$ before TaxJar will calculate your tax.