Taxes have always been among the hardest things to do regardless of whether you run your own business or not. Even more so if you do not have any experience in finance or accounting. Tax-related issues can be overwhelming, especially when you’re full of things to be done. When you’re not able to afford enough money to engage an accountant performing the task on your own could be risky. If you miss one detail it could mean you need to repeat the process!
Most people want to skipping this step. But since it’s required, we have no choice.
What is the best way to deal with it?
We can make our lives easier with tools such as TaxJar.
Here we’ll take a look at this well-known life-saving tool and explain how it can help you. While this is an extensive read, you should be able to assess whether TaxJar is what you need today.
Are you looking to watch videos instead? 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, let’s dive right in.
What exactly is TaxJar? TaxJar Referal
The company was founded in 2013 TaxJar is an application that automatizes your reports, filings, and sales tax calculations. It’s a solution for all aspects of your sales tax cycle. In addition, you can apply it in all of your channels of sales to ensure that you are in compliance with sales tax requirements. It makes the process simpler that could can take days to complete, and finish within only a few minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is used extensively by owners of online businesses to make their business more organized and straightforward. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the most important things you’ll want to check you have a tax accounting system perfectly integrates in conjunction with the sales channels you use. If you’re selling through multiple channels, you need to maintain everything in line. The last thing you want is to be penalized for missing a single minor point.
TaxJar lets you display your key metrics in one place. So, there’s no need to gather data in multiple channels and organize it into a single platform. All you need to do is to integrate TaxJar, it will take care of the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payments. Here’s a list highlighting the platforms they can integrate with:
TaxJar lets customers submit their sales tax either manually or via their AutoFile feature. For our review we’ll look at both.
If you decide to do it manually, TaxJar will allow you to connect the sales channels you use. When it comes time to filing income tax returns The team will guide you on how to handle these. But, it is up for you and your staff to complete the process in time. TaxJar is only there to help you understand what you need to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out any forms manually. This feature will ensure that everything will be automated, from calculating taxes on sales in order to record and process it. However, there might be additional charges if they are not included in the plan you chose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting issues. All orders made through your e-commerce channels can be compiled into one dashboard using this platform. Once you’re on the platform you and your team will have access to all the information you require, including an inventory of your transactions, reports, as well as data.
The best part about the feature you’ve chosen is they allow you to update automatically every day. They not only let you keep track of how much you’ve collected and how much you’ve earned, but they also let you determine when your next payments are due.
Their dashboard can also allow users to view in detail the total sales tax within your company. It is also possible to export the information as the form of a CSV file, if you want to use it for your accounting and financial planning processes or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of your sales channels. It means you don’t need to scramble for your documents whenever you’re when you’re in a pinch. Even if you already have your accountant, this function can help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will allow you to allocate your funds more effectively. You’ll know better how much budget you have for other operating expenses.
What’s more is that TaxJar offers tutorials and training, not just for their platform but everything connected to sales tax. You can look through their webinars, guides or blog posts for additional details. Apart from that, their sales tax calculator is useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms offer superb features, but they can be too expensive for businesses. This is why in this section we’ll take a look at TaxJar’s pricing tiers and the features that each of these choices can provide you. At present, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They claim that it’s the most suitable plan for you for those who need assistance in filing and reporting. It also includes sales tax reporting, 4 annual AutoFiles for free, as well as an CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a small company manager, the plan could be ideal for you. It might not include all the features offered by TaxJar, but it has all the basics you require.
In addition, you can reach their customer support via their email support chart. You’ll also have access to their integration capabilities.
If you’re looking for a bit more than just the basic features, then the Professional plan may be the best option for you. The price starts at $99 however, it could go up when you add additional features.
What is the difference from the starter plan?
In addition to having access to all of the Starter plan’s options, you also have access to their phone customer support access to APIs, as well as sophisticated CSV import. You can also get 12 AutoFiles for free each year.
If you have a massive enterprise, you may want to opt for the Premium plan instead. It comes with all the features that you require to help with your taxes. Additionally, they permit unlimited data import integrations, API integrations, team members as well as AutoFiles.
There is also a team dedicated for managing the account. They don’t reveal the price of the Premium plan. costs you. TaxJar Referal
However, they did say that this plan is tailor-fit to each user. So the costs will vary in line with what you require to run your business.
Luckily, you don’t have to risk your money to find out if the platform is right 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 see if the platform is an excellent fit for you.
Pros and Cons
After we’ve gone over everything you should know about TaxJar let’s take a breather. To sum it all up we’ll go over the advantages and disadvantages of the use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is possible to integrate it with other platforms
- You can track several 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 valid for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid out, TaxJar provides a fantastic platform to companies that have many sales channels and utilizes numerous platforms. If this sounds like the way you do, then you ought to try this.
It’s not just a way to assist you in keeping track of your revenue and products however, it will help you meet your deadlines. This is also an excellent option for accountants as they offer a Tax Advisor program. You can find tips and gain knowledge from their workshops regarding taxes via it.
Utilizing TaxJar will help you save more time while keeping the track of each deadline and obligation you have to meet. If you’re living in a place with complicated tax regulations, this will definitely help you get your head around the subject. TaxJar Referal
But if handling your taxes is straightforward, then TaxJar might not be a good investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. In addition, if you find the entire procedure simple to follow, you might be better off doing it on your own.
FAQ TaxJar Referal
What are the areas in which TaxJar offer API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All of the transactions’ amounts are in US$. If you’re using a different currency, you will need to convert it to US$ prior to when TaxJar determines the tax.