Taxes are always one of the most difficult things to handle regardless of whether you run an enterprise or not. More so if you don’t have a degree in accounting or finance. Tax-related issues aren’t easy, particularly when your whole day is filled with tasks to complete. In the event that you do not have the budget to hire an accountant, making it your own could be risky. If you make a mistake and you don’t know it, you may have to redo things again!
Almost everyone wants to skip this step. But , as it’s a requirement to be done, we can’t choose not to.
So what can we do about it?
It is always possible to make life easier with tools such as TaxJar.
This article will take a look at this life-saving tool and how it can benefit you. Even though this is a long read, you should be able to gauge whether TaxJar is exactly what you need today.
Are you looking video streaming 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 let’s get right into it.
What exactly is TaxJar? TaxJar Setup
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculations. It’s a solution for all aspects of your sales tax cycle. Additionally, you can use it in all of the sales channels you use to ensure compliance with sales taxes. It streamlines processes that can take days to complete, and can be completed in a matter of just 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 widely used by online business owners to keep everything simple and organized. Let’s explore their features and services.
Services and features
One of the first things you’ll want to check you have a tax accounting software seamlessly works well in conjunction with the sales channels you use. If you have multiple sales channels, you need to keep everything in place. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar lets you display your key metrics in one place. So, there’s no requirement to collect data from different channels and then organize it on one platform. All you have to do is connect TaxJar, it will handle the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar lets customers submit their sales tax either manually or via TaxJar’s AutoFile feature. In our review we’ll take a look at both.
If you decide to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. Once the time comes for filing income tax returns The team will guide you on how to handle these. However, it will be up to you and your staff to finish the tax returns in time. TaxJar is only there to help you understand what you need to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out all forms by hand. This feature will ensure that everything is automated, from calculating taxes on sales in order to record and process it. However, there might be extra fees if not included in the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to ease your accounting woes. All orders made through your e-commerce channels can be compiled into a single dashboard via this platform. Once you’re on the platform you and your team will have access to all the information you need, like a list of your transactions, reports, as well as data.
The most appealing aspect of this feature is that it allows you to update your account automatically each day. Not only can they help you know how much you’ve earned, but they also help you keep track of when the next payments are due.
Their dashboard also allows you to fully view the overall sales taxes for your business. Additionally, you can export the information as a CSV file in case you require it in your process of financial planning and accounting or if your team needs it for central reporting.
Training and Streamlining
TaxJar helps organize and keep the track of all your sales channels. This means that you don’t have to hunt for your paperwork 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 in advance 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 just for their platform but everything that has to do with sales tax. You can look through their webinars, guides, as well as their blog to find more info. Additionally their sales tax calculator should be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. This is why in this section we’ll take a look at TaxJar’s pricing levels and what each of these choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the most effective plan if you need help with filing requirements or reporting. It includes sales tax reporting, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you have access to their AI tax advice.
If you’re a small-scale company proprietor, then this program should be ideal for you. It might not include all the features of TaxJar however, it does include all the basics you require.
Additionally, you can contact the support team via their support chart for email. Additionally, you’ll have access to their integration capabilities.
If you’re looking to get that is more than the basic features, then the Professional plan might be the right one for you. It’s priced at $99 but you can increase it when you add additional features.
What is the difference from the original plan?
Apart from having access to every one of Starter plan’s features, you also have their support via phone, API access, and the ability to do advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you run a large company, you may need to go for the Premium plan instead. It includes all of the features that you require to help with your taxes. Additionally, they permit unlimited import integrations of data, API integrations, team members, and AutoFiles.
They also have a team that is devoted in managing your accounts. They don’t reveal the price of the Premium plan. will cost you. TaxJar Setup
But they did state that this plan is customized to each user. So the costs will vary depending on what you need for your company.
It’s a good thing that you don’t have to bet your life on it to determine if this service is for you. If you’re still considering different options, they offer a 30-day free trial. This should be enough time to see whether the service is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you must know about TaxJar let’s take a breather. To sum it all up Here are the advantages and disadvantages of making use of TaxJar to run your business.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms.
- It allows you to monitor multiple sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only applicable to USA customers
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes many platforms. If this sounds like the way you’re doing, then you must try TaxJar.
Not only will it aid in tracking your revenue and products, but it can assist you in meeting your deadlines. It is also a great platform for an accountant since they offer tax Advisor program. You can get tips and get knowledge from their seminars about taxes through it.
The use of TaxJar will help you get more done while keeping the track of each deadline and requirement you have to fulfill. If you’re living in a region with a lot of tax laws, this will certainly help you to get your mind around it. TaxJar Setup
If handling taxes is easy, then TaxJar might not be a good investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of all of it. In addition, if you’re finding the entire procedure easy to complete, you might be better off doing it on your own.
FAQ TaxJar Setup
What are the areas in which TaxJar provide API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify with TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions are in USdollars. If you’re using another currency, you’ll need to convert it into USUSD before TaxJar can calculate the tax.