Taxes are always one of the hardest things to do regardless of whether you’re running a business or not. Even more so if you do not have a background in finance or accounting. Tax-related issues can be overwhelming, particularly when you’re full of things to be done. In the event that you do not have enough money to employ an accountant, performing the task on your own could be dangerous. If you overlook one thing, you might need to repeat the process!
Nearly everyone would prefer to skip this step. However, since it’s mandatory and mandatory, there’s no other choice.
What can we do about it?
We can always simplify our lives by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving device and how it can assist you. Even though this is lengthy, you should be able to assess whether TaxJar is the tool you require in the present.
Are you looking watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What is TaxJar TaxJar Sales Tax Nexus And Drop Shipping
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. In addition, you can apply it across all the sales channels you use to make sure you’re in compliance with your sales taxes. It makes the process simpler that could require days to complete and is completed in just a few only a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is extensively used by owners of online businesses to keep everything neat and simple. 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 is that your accounting tax platform perfectly integrates in conjunction with the sales channels you use. If you’re selling through multiple channels, you must ensure that everything is in order. The last thing you want is to face a penalty due to not paying attention to a minor thing.
TaxJar lets you display your key metrics in one place. That way, there’s no requirement to collect data from different channels and then organize it on one platform. All you need to do is to integrate TaxJar, and the platform will do the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payments. Here’s a list of platforms they can integrate with:
TaxJar allows customers to file their sales taxes either manually or via the AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of your sales platforms. When the time is right for filing tax returns for income TaxJar will train you on managing the tax returns. But, it is up for you and your team to complete everything on time. TaxJar is only there to provide guidance on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. Through this feature, everything will be automated, from calculating sales taxes to recording and processing them. But, it is possible to incur 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. All orders made through 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 an inventory of your transactions, reports, and the data.
The greatest benefit of this option is the fact that they allow you to update your account automatically each day. Not only can they help you keep track of how much you’ve collected and how much you’ve earned, but they also let you keep track of when the next payments are due.
The dashboard allows you to see the total sales tax for your business. You can also export the data to the form of a CSV file in case you require it to aid in financial planning and accounting processes or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of the channels you sell through. That means you won’t have to hunt for your paperwork whenever you’re in a pinch. Even even if you already have an accountant, this function can make them more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll know better how much budget you have for other operational expenses.
But what’s even better is that TaxJar offers tutorials and training not only on their platform, but for anything that has to do with sales tax. You can look through their webinars, guides, or blog posts for additional information. Additionally their sales tax calculator should be beneficial when 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. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of those options can offer you. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan costs $19. They claim that it’s the most suitable plan for you if you need help with filing requirements and reporting. It also includes the tax on sales, 4 free yearly AutoFiles, and an CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a small company owner, this plan will be perfect for you. It may not offer all of TaxJar’s features however, it does include the essentials that you need.
Additionally, you can contact the support team via their support chart for email. You’ll also be able to use their integration features.
If you’re looking for something that is more than the basics Professional could be the one for you. It’s priced at $99 but you can increase it if you add custom features.
So how different is it from the basic plan?
In addition to having access to each of Starter plan’s features, you also get access to their support via phone access to APIs, as well as sophisticated CSV import. They also allow you to have 12 free AutoFiles each year.
If you own a huge company, you may need to choose premium plans instead. It includes all of the features that you require to help with your taxes. Moreover, they allow unlimited data import integrations, API integrationsfor team users as well as AutoFiles.
They also have a team that is devoted in managing your accounts. However, they don’t disclose the price of the Premium plan. costs you. TaxJar Sales Tax Nexus And Drop Shipping
However, they did say that the plan is custom-made for every user. The cost of the plan will be different depending on what you need for your company.
Luckily, you don’t have to gamble your money just to see if this platform is the right one for you. If you’re still looking into other options, they have 30 days of free trial. This should give you enough time to gauge if the platform is an excellent fit for you.
Pros and Pros and
Now that we’ve covered all you must know about TaxJar Let’s relax. In order to sum up the whole thing, here are the advantages and disadvantages of using TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Support Service Team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It can be integrated 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
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid down, TaxJar is an excellent platform for companies with many sales channels and 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 your deadlines. This is also an excellent option for accountants as they provide the Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
The use of TaxJar can help you get more done while keeping track of every deadline or requirement you need to fulfill. If you’re in an area with complex tax regulations, this will definitely help you get your head around it. TaxJar Sales Tax Nexus And Drop Shipping
But if handling your taxes is straightforward, then TaxJar might not be a good expense. If you only have one or two channels of sales, TaxJar won’t be needed to track everything. If you find the entire process easy to do and you’re comfortable with it, you may be better to do it by yourself.
FAQ TaxJar Sales Tax Nexus And Drop Shipping
What areas does TaxJar provide API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All transaction amounts are n USdollars. If you’re using another currency, you will need to convert it to US$ before TaxJar determines the tax.