Taxes are always one of the most difficult tasks to complete regardless of whether you’re running a business or not. Particularly if you don’t have a background in accounting or finance. Tax-related work can be overwhelming, particularly when your whole day is packed with things to do. If you don’t have the funds to hire an accountant, making it your own can be risky. If you miss one detail and you don’t know it, you may need to repeat the process!
Most people want 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 make life easier with tools such as TaxJar.
We’ll look at this popular life-saving tool and explain how it can help you. While this is an extensive read, you should be able to gauge whether TaxJar is what you need in the present.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What is TaxJar? TaxJar Reverse Transactions
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of the sales channels you use to ensure compliance with sales tax requirements. It streamlines processes that can take days to complete, and finish within minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to keep everything simple and organized. Let’s take a look at the benefits and features of TaxJar.
Features and services
One of the most important things you’ll want to check is that your accounting tax system perfectly integrates along with sales funnels. If you’re using multiple sales channels, you must ensure that everything is in order. The most important thing is not to be penalized for overlooking just one minor detail.
TaxJar allows you to display your key metrics in one spot. So, there’s no need to collect information from multiple sources and then organize it on a single platform. All you need to do is connect TaxJar, and the platform will do the rest.
In addition, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms that they can connect with:
TaxJar allows customers to file their sales taxes by hand or using the AutoFile feature. In the purpose of this article, we’ll dig into both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When it comes time to the filing of income tax returns The team will guide you on how to handle these. However, it will be up to you and your team members to complete the process within the timeframe. TaxJar is only there to guide you on what you have to accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out the forms in a manual manner. Through this feature, everything is automated, from calculating sales taxes in order to record and process it. There could be extra fees if not included in the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be compiled into a single dashboard through this platform. From there, you and your team can access everything you need, like the list of transactions, reports and data.
The best part about this option is the fact that they allow you to automatically update every day. They not only let you keep track of how much you’ve earned and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard also allows you to fully view the sales tax totals in your business. It is also possible to export the information to CSV format. CSV file, if you want to use it in your financial planning and accounting processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the channels you sell through. That means you won’t have to search for your documents whenever you’re in a pinch. Even when you already have your accounting firm, the feature will make them 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 be aware of the budget you have to cover other operational costs.
But what’s even better is that TaxJar offers training and tutorials, not just for their platform but everything that has to do with sales tax. Check out their webinars, guides as well as their blog to find more info. Apart from that, their sales tax calculator should be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We understand how important it is to set your budget. Certain platforms have amazing features, but they can be too costly for your business. This is why in this section we’ll take a look at TaxJar’s pricing structures and the features that each of these options can offer you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan costs $19. The company claims that it’s the most suitable plan for you for those who need assistance with filing requirements and reporting. It also includes the tax on sales, 4 annual AutoFiles for free, as well as an CSV import. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a smaller company owner, this plan should be perfect for you. It might not include all of TaxJar’s features, but it has the basic features you require.
You can also contact their customer support via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking for different from the basic features, then the Professional plan could be the one for you. It starts at $99, but it can go higher by adding custom features.
What is the difference from the basic plan?
In addition to accessing every one of Starter plan’s features, you also get access to the support of their customer service via phone Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you have a massive company, you may need to go for the Premium plan instead. It comes with all the features you need to help with your taxes. In addition, they offer unlimited import integrations of data as well as API integrationsfor team members and AutoFiles.
They also have a team who are devoted to managing your account. However, they don’t disclose the amount that the Premium plan is going to cost. TaxJar Reverse Transactions
However, they did mention that the plan is custom-made to each user. So the costs will vary according to what you require for your company.
Fortunately, you don’t need to risk your money to see if this platform is for you. If you’re still looking into other options, they have 30 days of free trial. It should give you enough time to determine whether the service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to be aware of TaxJar let’s take a break. In order to sum up the whole thing, here are the pros and cons of making use of TaxJar to run your business.
- There is a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature
- Only applicable for USA customers.
- Needs accountants and owners to check local legislation
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for businesses with numerous sales channels, and that utilizes many platforms. If that’s what you’re doing, then you ought to try this.
Not only will it aid in tracking the sales and profits of your business, but it can also help you meet your deadlines. It’s also an excellent platform for an accountant since they offer a Tax Advisor program. You can get tips and gain knowledge from their workshops regarding taxes via it.
Utilizing TaxJar can allow you to get more done while keeping track of every deadline or requirement you need to meet. If you’re living in an area with complex tax laws, this can certainly help you to get your head around the subject. TaxJar Reverse Transactions
However, if managing your taxes is straightforward and straightforward, then TaxJar could be a waste of investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you find the whole procedure simple to follow, you might be better off doing it by yourself.
FAQ TaxJar Reverse Transactions
Which areas does 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 integrate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to make it easier to monitor and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in USdollars. If you’re using another currency, you will need to convert it to US$ prior to when TaxJar can calculate the tax.