Taxes have always been among the hardest things to do regardless of whether you’re running your own business or not. Even more so if you do not have a background in finance or accounting. Tax-related issues can be overwhelming, especially when you’re packed with things to do. If you don’t have the funds to employ an accountant, doing it on your own can be dangerous. If you make a mistake and you don’t know it, you may have to redo things again!
Nearly everyone would prefer to skip this step. But , as it’s a requirement to be done, we can’t choose not to.
What can we do about it?
It is always possible to make our lives easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving device and how it can benefit you. Even though this is a long read but you’ll be able to determine if TaxJar is what you need in the present.
Do you prefer to watch videos instead? Check out this video – by Marcus Stonelius on YouTube they also give a complete review of the features offered by TaxJar.
For those who like to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Sales & Use Tax
The company was 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 the entire life cycle. Additionally, you can use it across all your channels of sales to ensure that you are in compliance with your sales taxes. It streamlines processes that take days to complete and can be completed in a matter of only a few minutes.
TaxJar has been used in a variety of industries, including food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is used extensively by business owners who run online businesses to make their business more neat and simple. Let’s take a look at their features and services.
Services and features
One of the first things you’ll want to check you have a tax accounting system perfectly integrates with your sales channel. If you have multiple sales channels, it is essential to maintain everything in line. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to show your critical data in one location. That way, there’s no need to collect data in multiple channels and organize it into one platform. All you need to do is integrate TaxJar it will handle the rest.
Other than that, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to submit their sales tax manually or through their AutoFile feature. In our review we’ll dig at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. Once the time comes for filing income tax returns, the team will instruct you on how to manage the tax returns. But, it is up for you and your team to complete the process within the timeframe. TaxJar will only guide you on what you have to do , but not to handle it.
If you’d prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. With this feature, everything will be automated from calculating taxes on sales to recording and processing them. However, there might be extra fees if not part of the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting woes. The orders you place through your online channels can be put together into one dashboard using this platform. From there, you and your team will have access to all the information you require, including the list of transactions, reports and the data.
The most appealing aspect of this option is the fact that it allows you to automatically update every day. Not only will they let you keep track of how much you’ve earned however, they can also help you determine when your next payment is due.
Their dashboard can also allow you to fully view the total sales tax in your business. It is also possible to export the data in CSV format. CSV file in case you require it in your financial planning and accounting processes or if your team needs it for centralized reporting.
Training and Streamlining
TaxJar helps organize and keep on top of all your sales channels. This means that you don’t have to hunt for your paperwork when you’re in a pinch. Even if you already have your accounting firm, the feature will make them more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will allow you to allocate your funds more effectively. You’ll be aware of the budget you have available for other operational costs.
But what’s even better is that TaxJar provides training and tutorials and tutorials, not just for their platform but all things related 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 should be helpful if you’re planning on take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms provide amazing features, but they’re sometimes too expensive for businesses. This is why in this section we’ll take a look at TaxJar’s pricing levels and what each of those options can offer you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. They say it’s the most suitable plan for you to help you with filing requirements or reporting. It also includes taxes on sales and sales as well as 4 annual AutoFiles for free, as well as an CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a smaller company manager, the plan will be ideal for you. It may not have all the features of TaxJar, but it has the basic features you require.
In addition, you can reach the support team via their support chart for email. You’ll also have access to their integration tools.
If you’re looking for a bit more than just the basics Professional could be the one for you. The price starts at $99 however, it could go up when you add additional features.
So how different is it from the basic plan?
Apart from having access to all of the Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you have a massive business, you might need to choose premium plans instead. It has all of the features you need to help with your taxes. Additionally, they permit unlimited integrations with data imports, Integrations with APIs, teams of users as well as AutoFiles.
There is also a team who are devoted in managing your accounts. However, they don’t disclose the price of the Premium plan. will cost you. TaxJar Sales & Use Tax
However, they did say that this plan is tailor-fit to each user. The cost of the plan will be different in line with what you require to run your business.
Luckily, you don’t have to bet your life on it to see if this platform is right for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to see 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 relax. To summarize we’ll go over the advantages and disadvantages of making use of TaxJar for your company.
- Has a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers an online sales tax calculator.
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms
- You can track several sales channels
- AutoFile limit is based on 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 review local laws
The Final Verdict
With everything clearly laid out TaxJar is an excellent platform for businesses with multiple sales channels and uses plenty of platforms. If that sounds like what you do, then you should try this.
Not only will it assist you in keeping track of your revenue and products It can also help you meet your deadlines. It’s also an excellent option for accountants as they offer a Tax Advisor program. There are tips to follow and learn from their sessions regarding taxes via it.
Using TaxJar can help you reduce time and keep the track of each deadline or requirement you need to fulfill. If you’re in an area with complex tax regulations, this will certainly help you to get your head around the subject. TaxJar Sales & Use Tax
But if handling your taxes is simple, then TaxJar could be a waste of expense. If you only have one or two channels of sales, TaxJar won’t be needed to track all of it. If you find the entire process easy to do and you’re comfortable with it, you may be better off doing it on your own.
FAQ TaxJar Sales & Use Tax
Which areas does TaxJar provide API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can sync 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 doesn’t convert currency values. The transactions’ amounts are in USdollars. If you’re using another currency, you will need to convert it into USdollars before TaxJar determines your tax.