Taxes have always been among the most difficult things to handle regardless of whether you run a business or not. Even more so if you do not have a background in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is packed with things to do. In the event that you do not have the funds to engage an accountant doing it on yourself can be risky. If you overlook one thing, you might have to redo things again!
Nearly everyone would prefer to skip this step. However, since it’s mandatory to be done, we can’t choose not to.
So , what is the best way to deal with it?
We can always simplify our lives by using tools like TaxJar.
We’ll look at this well-known life-saving tool and explain how it can assist you. Although this is quite a long read it is possible to gauge whether TaxJar is what you need in the present.
Do you prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
For those who like to read, then let’s get right into it.
What is TaxJar TaxJar Sales Tax By State
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. Additionally, you can use it across all of your sales channels to ensure that you are in compliance with your sales taxes. It streamlines processes that require days to complete and is completed in just a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is widely used by business owners who run online businesses to keep everything organized and straightforward. Let’s explore 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 software perfectly integrates 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 get a penalty for not paying attention to a minor thing.
TaxJar lets you display your key metrics in one spot. That way, there’s no requirement to collect data from different channels and sort it into a single platform. All you have to do is integrate TaxJar and the platform will take care of all the rest.
Other than that, 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 submit their sales tax manually or through TaxJar’s AutoFile feature. For this review, we’ll dig into both.
If you opt to do it manually, TaxJar will allow you to connect the sales channels you use. When the time is right for filing income tax returns The team will guide you on managing these. But, it is up to you and your team members to finish the tax returns in time. TaxJar is there to help you understand what you should do but not handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit the forms in a manual manner. With this feature, everything is automated, from calculating taxes on sales to recording and processing it. There could be extra fees if you do not include this feature in the plan you choose.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to ease your accounting issues. All orders made through your e-commerce channels can be put together into a single dashboard via this platform. From there you and your team will have access to all the information you need, like an inventory of your transactions, reports and information.
The most appealing aspect of this option is the fact that they allow you to update your account automatically each 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 track when your following payment is due.
Their dashboard can also allow you to fully view the sales tax totals in your business. It is also possible to export the information in a CSV file in case you require it in your accounting and financial planning processes or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar helps organize and keep the track of all the channels you sell through. This means that you don’t have to search for your documents when you’re in the event of a need. Even if you already have your accountant, this feature will make them more efficient.
Additionally, knowing the figures for your sales tax ahead of time will allow you to allocate your money more efficiently. You’ll know exactly how much budget you have available for other operational costs.
What’s more is that TaxJar provides training and tutorials, not just for their platform , but also all things connected to sales tax. You can check out their webinars, guides, as well as their blog to find more info. Apart from that, their sales tax calculator is helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they can be too expensive for businesses. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and what each of these plans can offer. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. The company claims that it’s the best plan if you need help in filing and reporting. It includes the tax on sales, 4 autofiles for free each year, and a CSV import. Even with the basic plan, you can access their AI tax tips.
If you’re a small-scale business manager, the plan should be perfect for you. It may not offer all the features offered by TaxJar however, it does include the basic features you require.
You can also contact the support team via their support chart for email. Additionally, you’ll have access to their integration tools.
If you’re looking to get a bit more than just the basic features Professional could be the one for you. It’s priced at $99 however, it could go up by adding custom features.
So how different is it from the original plan?
Apart from having access to each of Starter plan’s options, you also have access to their phone customer support access to APIs, as well as the ability to do advanced CSV import. You can also receive 12 free AutoFiles every year.
If you own a huge business, you might need to opt for the Premium plan instead. It includes all of the features you need to aid in your tax preparation. Additionally, they permit unlimited data import integrations API integrationsfor team users, and AutoFiles.
They also have a staff who are devoted for managing the account. However, they don’t disclose how much the Premium plan will cost you. TaxJar Sales Tax By State
But they did state that this plan is tailor-fit for each user. The cost of the plan will be different depending on what you need to run your business.
Luckily, you don’t have to bet your life on it to see if this platform is the right one for you. If you’re still looking into other options, they have a 30-day free trial. This should give you enough time to gauge whether the software is the right choice for you.
Pros and Cons
We’ve covered everything you should know about TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of using TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Offers on the internet for sales tax 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.
- It allows you to monitor multiple 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 clearly laid out, TaxJar provides a fantastic platform to companies with multiple sales channels and uses numerous platforms. If this sounds like the way you’re doing, then you should try this.
It’s not just a way to help you track the sales and profits of your business, but it can assist you in meeting your deadlines. It is also a great opportunity for accountants since they offer tax Advisor program. You can get tips and gain knowledge from their workshops on taxes by using it.
Using TaxJar can help you get more done while keeping on top of each deadline and requirement you have to meet. If you live in a place with complicated tax regulations, this will definitely help you get your mind around it. TaxJar Sales Tax By State
However, if managing your taxes is straightforward, then TaxJar could be a waste of expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of everything. In addition, if you find the whole procedure simple to follow and you’re comfortable with it, you may be better in doing it all on your own.
FAQ TaxJar Sales Tax By State
What areas does TaxJar offer API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify with TaxJar?
Yes. You can link your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All transaction amounts are n US$. If you’re using another currency, you’ll need to convert it to USUSD before TaxJar determines the tax.