Taxes have always been among the hardest things to do regardless of whether you run your own business or not. More so if you don’t have any experience in finance or accounting. Tax-related tasks can be overwhelming, particularly when your whole day is full of things to be done. When you’re not able to afford the funds to hire an accountant, performing the task on your own could be dangerous. If you overlook one thing, you might 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 can we do about it?
We can make our lives easier by using tools like TaxJar.
We’ll look at this well-known life-saving device and how it can benefit you. Even though this is an extensive read but you’ll be able to determine if TaxJar is exactly what you need in the present.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
For those who like to read, let’s dive right in.
What exactly is TaxJar? TaxJar – Sales Tax Automation For Woocommerce
The company was founded in 2013 TaxJar is a platform that helps automate your reporting, filings and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. Additionally, you can use it across all of the sales channels you use to make sure you’re in compliance with your sales taxes. It simplifies the processes that take days to complete and is completed in just a few minutes.
TaxJar has been utilized in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by online business owners to keep everything simple and organized. Let’s take a look at the features and services offered by TaxJar.
Features and services
One of the most important things you’ll want to check you have a tax accounting system is compatible with your sales channel. If you’re selling through multiple channels, it is essential to keep everything in place. The final thing you would like is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to display your most important data in one location. This means that there is no need to collect information from multiple sources and organize it into one platform. All you need to do is to integrate TaxJar it will take care of the rest.
Other than that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows clients to submit their sales tax either manually or via the AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you choose to do it manually, TaxJar will allow you to connect all your sales platforms. When it comes time to the filing of income tax returns TaxJar will train you on managing them. It is up for you and your staff to complete everything within the timeframe. TaxJar is 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, which means you don’t have to fill out any forms manually. Through this feature, everything will be automated, from calculating sales taxes to recording and processing them. There could be extra fees if not included in the plan you select.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to ease your accounting woes. The orders you place through your online channels can be put together into a single dashboard via this platform. From there, you and your team will have access to everything you require, including an inventory of your transactions, reports, and the data.
The most appealing aspect of this option is the fact that it lets you to update automatically every day. Not only can they help you keep track of how much you’ve earned, but they also help you keep track of when the next payments are due.
The dashboard allows users to view in detail the total sales tax in your business. You can also export your data in a CSV file, if you want to use it in your accounting and financial planning processes or if your team needs it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep track of all of the channels you sell through. This means that you don’t have to scramble for your documents when you need them when you’re in a pinch. Even if you already have your accounting firm, the feature can aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll be aware of the budget you have for other operational expenses.
The best part is that TaxJar offers training and tutorials not only for their platform , but also all things related to sales tax. You can look through their guides, webinars, and blog for more information. Apart from that, their sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to determine your budget. Certain platforms have amazing features, but they’re sometimes too costly for the business you run. For this reason we’ll examine TaxJar’s pricing structures and the features that each of these choices can provide you. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan starts at $19. They claim that it’s the best plan if you need help with filing requirements or reporting. It includes taxes on sales and sales as well as 4 free yearly AutoFiles, and the option of a CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale business proprietor, then this program should be perfect for you. It may not have all the features of TaxJar, but it has the essentials that you need.
You can also contact their customer support via their support chart for email. You’ll also be able to use their integration tools.
If you’re looking for something a bit more than just the basic features and options, then the Professional plan might be the right one for you. It’s priced at $99 however, it could go up if you add custom features.
So how different is it from the starter plan?
In addition to accessing each of Starter plan’s features, you also have their support via phone access to APIs, as well as the ability to do advanced CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you own a huge enterprise, you may want to choose the Premium plan instead. It includes all of the features needed to aid in your tax preparation. Moreover, they allow unlimited integrations with data imports Integrations with APIs, teams of users as well as AutoFiles.
There is also a team dedicated to managing your account. They don’t reveal the amount that the Premium plan will cost you. TaxJar – Sales Tax Automation For Woocommerce
However, they did say that the plan is custom-made for every user. So the costs will vary depending on what you need for your business.
It’s a good thing that you don’t have to risk your money to determine if this service is the right one for you. If you’re still considering other options, they have a 30-day free trial. This should give you enough time to determine whether the service 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. To summarize we’ll go over the pros and cons of using TaxJar to run your business.
- Has a 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 easy to navigate
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out TaxJar can be a great platform companies with numerous sales channels, and that utilizes plenty of platforms. If that sounds like what you do, then you should try this.
It’s not just a way to help you track the sales and profits of your business however, it will also help you meet the deadlines you set. It is also a great opportunity for accountants since they provide a Tax Advisor program. You can find tips and gain knowledge from their workshops about taxes through it.
Using TaxJar can allow you to get more done while keeping the track of each deadline and requirement you have to fulfill. If you’re in a place with complicated tax regulations, this will definitely help you get your head around it. TaxJar – Sales Tax Automation For Woocommerce
But if handling taxes is easy If it isn’t, then TaxJar could be a waste of expense. If you have only one or two channels of sales, TaxJar won’t be needed to keep track of everything. Moreover, if you find the whole procedure simple to follow, you might be better to do it on your own.
FAQ TaxJar – Sales Tax Automation For Woocommerce
What areas does TaxJar offer API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currencies. The transactions are in US$. If you’re using another currency, you’ll have to convert it into US$ before TaxJar will calculate your tax.