Taxes are always one of the most difficult things to handle regardless of whether you’re running an enterprise or not. More so if you don’t have any experience in finance or accounting. Tax-related tasks can be overwhelming, especially when your whole day is full of things to be done. When you’re not able to afford the budget to hire an accountant, doing it on your own can be risky. If you miss one detail and you don’t know it, you may have to redo things again!
Nearly everyone would prefer to avoid this step. However, since it’s mandatory, we have no choice.
What can we do about it?
We can make life easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and how it can benefit you. While this is a long read, you should be able to assess whether TaxJar is what you need today.
Do you prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
But for those who prefer to read, then we’ll dive right into.
What is TaxJar? TaxJar Sales Tax Automation Opencart
Founded in 2013, TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. TaxJar is a solution to all aspects of your sales tax cycle. Additionally, you can use it across all of your sales channels to make sure you’re in compliance with sales taxes. It streamlines processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar has been used in a variety of industries, including food and beverage companies, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is widely used by online business owners to make their business more organized and straightforward. 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 you have a tax accounting platform is compatible with your sales channel. If you’re selling through multiple channels, you need to keep everything in place. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar lets you display your most important metrics in one place. So, there’s no need to collect data from different channels and organize it into one platform. All you need to do is connect TaxJar, and the platform will handle the rest.
Other than that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to file their sales taxes either manually or via TaxJar’s AutoFile feature. In the purpose of this article, we’ll take a look at both.
If you decide to go it alone, TaxJar will allow you to connect all of your sales platforms. Once the time comes for the filing of income tax returns, the team will instruct you on how to handle them. It is up to you and your team members to complete everything on time. TaxJar is there to provide guidance on what you have to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out the forms in a manual manner. This feature will ensure that everything is automated, from calculating taxes on sales in order to record and process it. But, it is possible to incur additional costs if the feature is you do not include this feature in the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to assist you with your accounting issues. The orders you place through your online channels can be compiled into a single dashboard through this platform. Once you’re on the platform, you and your team can access everything you need, such as a list of your transactions, reports, as well as information.
The most appealing aspect of the feature you’ve chosen is it lets you to update automatically every day. They not only let to know the amount you’ve collected and how much you’ve earned, but they also let you track when your following payment is due.
Their dashboard also allows you to fully view the overall sales taxes within your company. It is also possible to export your data as the form of a CSV file, if you want to use it in your process of financial planning and accounting or if your team needs it for central reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of the sales avenues you use. That means you won’t have to scramble for your documents whenever you’re in the event of a need. Even even if you already have an accountant, this function will make them more efficient.
Additionally, knowing the figures for your sales tax ahead of time will help you plan your money more efficiently. You’ll be aware of the budget you have to cover other operational expenses.
But what’s even better is that TaxJar offers training and tutorials not only for their platform but all things that has to do with sales tax. You can look through their webinars, guides as well as their blog to find more information. Apart from that the sales tax calculator is useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms provide amazing features, but they’re sometimes too costly for the business you run. This is why in this section we’ll examine TaxJar’s pricing structures and what each of these plans can offer. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan starts at $19. They say it’s the most suitable plan for you if you need help with filing requirements and reporting. It comes with sales tax reporting, 4 free yearly AutoFiles, and the option of a CSV import. Even with the starter plan, you have access to their AI tax recommendations.
If you’re a smaller business proprietor, then this program could be ideal for you. It may not have all the features offered by TaxJar but it comes with the essentials that you need.
You can also contact their support team with their support chart for email. You’ll also have access to their integration capabilities.
If you’re looking for that is more than the standard 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.
What is the difference from the starter plan?
In addition to accessing all of the Starter plan’s options, you also have access to the support of their customer service via phone, API access, and advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you have a massive business, you might need to choose premium plans instead. It includes all of the features needed to help with your taxes. Additionally, they permit unlimited data import integrations, API integrations, team users, and AutoFiles.
They also have a team that is devoted in managing your accounts. However, they don’t disclose the price of the Premium plan. is going to cost. TaxJar Sales Tax Automation Opencart
However, they did say 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 bet your life on it to see if this platform is for you. If you’re still considering different options, they offer 30 days of free trial. This should give you enough time to gauge whether the software is a good fit for you.
Pros and Cons
After we’ve gone over everything you must know about TaxJar Let’s relax. To summarize, here are the pros and cons of making use of TaxJar for your business.
- Has a Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers Taxes on sales online calculator.
- Has support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature
- Only applicable for USA customers.
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid down, TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes plenty of platforms. If that’s what you’re doing, then should try this.
Not only will it help you track the sales and profits of your business, 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 find tips and gain knowledge from their workshops on taxes by using it.
Using TaxJar can help you save more time while keeping the track of each deadline or requirement you need to fulfill. If you’re in a place with complicated tax regulations, this will certainly help you to get your head around it. TaxJar Sales Tax Automation Opencart
But if handling taxes is easy If it isn’t, then TaxJar might not be a good expense. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. Moreover, if you’re finding the entire process easy to do and you’re comfortable with it, you may be better in doing it all by yourself.
FAQ TaxJar Sales Tax Automation Opencart
Which areas does TaxJar provide API support?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can connect your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. The transactions are in US$. If you’re using a different currency, you’ll have to convert it to USdollars before TaxJar will calculate the tax.