Taxes have always been among the hardest things to do regardless of whether you’re running your own business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related work can be overwhelming, particularly when your whole day is filled with tasks to complete. If you don’t have the funds to hire an accountant, making it your own could be dangerous. If you overlook one thing, you might have to redo things again!
Almost everyone wants to skipping this step. But , as it’s a requirement to be done, we can’t choose not to.
So what is the best way to deal with it?
We can always make our lives easier by using tools like TaxJar.
Here we’ll take a look at this popular life-saving device and how it can benefit you. While this is an extensive read, you should be able to gauge whether TaxJar is what you need right now.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
For those who like to read, then let’s dive right in.
What is TaxJar? TaxJar Professional Vs Starter
In 2013, TaxJar was established. TaxJar is an application that automatizes your reporting, filings and sales tax calculations. It’s a solution for your entire sales tax life cycle. In addition, you can apply it across all the sales channels you use to ensure that you are in compliance with sales tax requirements. It makes the process simpler that could take days to complete and can be completed in a matter of just a few minutes.
TaxJar is used 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 make their business more organized and straightforward. Let’s explore their features and services.
Features and services
One of the most important things you’ll want to check you have a tax accounting platform is compatible in conjunction with the sales channels you use. If you’re using multiple sales channels, you must maintain everything in line. The last thing you want is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your most important metrics in one spot. So, there’s no need to collect data in multiple channels and organize it into one platform. All you have to do is connect TaxJar and the platform will handle the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of platforms they can integrate with:
TaxJar allows customers to make sales tax filings by hand or using TaxJar’s AutoFile feature. In the purpose of this article, we’ll look at both.
If you choose to do it manually, TaxJar will allow you to connect all of your sales platforms. Once the time comes for the filing of income tax returns TaxJar will train you on managing them. But, it is up for you and your staff to finish the tax returns on time. TaxJar is there to guide you on what you have to accomplish, but not manage it.
If you would prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out all forms by hand. With this feature, everything will be automated, from calculating taxes on sales in order to record and process them. There could be extra fees if not included in the plan you choose.
Sales Tax Reports
As I mentioned earlier that you can utilize TaxJar to help you with your accounting problems. Your orders from 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 require, including a list of your transactions, reports, and data.
The most appealing aspect of this feature is that they allow you to update your account automatically each day. Not only can they help you keep track of how much you’ve accumulated, but they also help you keep track of when the next payment is due.
The dashboard allows you to fully view the total sales tax within your company. You can also export your data as CSV format. CSV file, if you want to use it for your process of financial planning and accounting or if you require it for central reporting.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of the channels you sell through. That means you won’t have to hunt for your paperwork whenever you’re in the event of a need. Even when you already have your accountant, this feature will make them more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds more effectively. You’ll be aware of the budget you have to cover other operating expenses.
What’s more is that TaxJar offers training and tutorials and tutorials, not just for their platform but for anything related to sales tax. You can look through their guides, webinars, or blog posts for additional information. Additionally, their sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing capabilities, but they’re often too costly for your business. This is why in this section, we’ll look into TaxJar’s pricing structures and the features that each of these plans can offer. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They claim that it’s the most suitable plan for you if you need help with filing requirements and reporting. It comes with sales tax reporting, four free yearly AutoFiles, and an CSV import. Even with the starter plan, you will be able to access their AI tax recommendations.
If you’re a small-scale business proprietor, then this program will be perfect for you. It might not include all of TaxJar’s features but it comes with the essentials that you need.
In addition, you can reach their support team with their email support chart. You’ll also be able to use their integration features.
If you’re looking for that is more than the basics, then the Professional plan might be the right one for you. It’s priced at $99 but it can go higher by adding custom 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 their support via phone, API access, and sophisticated CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive company, you may need to opt for premium plans instead. It includes all of the features needed to make your tax filing easier. In addition, they offer unlimited data import integrations, API integrationsfor team members, and AutoFiles.
They also have a staff dedicated in managing your accounts. They don’t reveal the price of the Premium plan. will cost you. TaxJar Professional Vs Starter
However, they did say 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.
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 looking into different options, they offer the opportunity to try a free trial for 30 days. This should give you enough time to gauge whether the software is the right choice for you.
Pros and Cons
Now that we’ve covered all you must be aware of TaxJar let’s take a break. In order to sum up the whole thing Here are the advantages and disadvantages of using TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers an online sales tax calculator.
- Has support service team
- The dashboard is simple 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
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers.
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid down, TaxJar can be a great platform companies with many sales channels and utilizes many platforms. If that’s what you do, then you should try this.
Not only will it help you track your revenue and products, but it can also help you meet your deadlines. It is also a great option for accountants as they have a Tax Advisor program. You can get tips and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar will help you save more time while keeping track of every deadline and obligation you have to meet. If you’re living in an area with complex tax laws, this will surely help you wrap your head around it. TaxJar Professional Vs Starter
However, if managing your taxes is simple If it isn’t, then TaxJar could be a waste of expense. If you only have one or two channels for sales, TaxJar won’t be needed to track all of it. In addition, if you find the entire procedure easy to complete, you might be better to do it by yourself.
FAQ TaxJar Professional Vs Starter
What are the areas in which TaxJar provide API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. The transaction amounts are n US$. If you’re using another currency, you’ll have to convert it into USUSD before TaxJar determines your tax.