Taxes are always one of the most difficult tasks to complete regardless of whether you run an enterprise or not. Even more so if you do not have any experience in finance or accounting. Tax-related issues aren’t easy, particularly when your whole day is packed with things to do. If you don’t have the budget to hire an accountant, doing it on your own can be risky. If you overlook one thing, you might have to redo things again!
Almost everyone wants to avoid this step. But since it’s required, we have no choice.
What can we do ?
We can make our lives easier by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and explain how it can assist you. Although this is quite an extensive read but you’ll be able to assess whether TaxJar is what you need right now.
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.
If you prefer to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Shopify Video
In 2013, TaxJar was established. TaxJar is an application that automatizes your filings, reports, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all your sales channels to ensure that you are in compliance with your sales taxes. It streamlines processes that require days to complete and can be completed in a matter of 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.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to make their business more organized and straightforward. Let’s explore their features and services.
Services and features
One of the first things you’ll need to make sure is that your accounting tax software seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, you must keep everything in place. The most important thing is not to face a penalty due to overlooking just one minor detail.
TaxJar lets you display your key metrics in one spot. That way, there’s no requirement to collect information from multiple sources and then organize it on a single platform. All you need to do is connect TaxJar, it will take care of all the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list of platforms they can integrate with:
TaxJar allows customers to file their sales taxes manually or through 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 your sales platforms. When it comes time to the filing of income tax returns, the team will instruct you on managing these. But, it is up to you and your team members to complete everything within the timeframe. TaxJar is only there to help you understand what you have to accomplish, but not manage it.
If you’d prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out all forms by hand. This feature will ensure that everything will be automated from calculating sales tax to recording and processing it. But, it is possible to incur additional charges if they are you do not include this feature in the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to assist you with your accounting problems. All orders made through your e-commerce channels can be put together into one dashboard using this platform. Once you’re on the platform you and your staff will have access to all the information you require, including the list of transactions, reports and information.
The greatest benefit of the feature you’ve chosen is it allows 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 track when your following payment is due.
Their dashboard also allows you to see the total sales tax within your company. Additionally, you can export the information to a CSV file if you need it in your accounting and financial planning processes or if you require it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep the track of all the channels you sell through. That means you won’t have to scramble for your documents when you’re in the event of a need. Even if you already have your accountant, this function can aid them in being more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know exactly how much 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 all things connected to sales tax. Check out their webinars, guides and blog for more information. In addition, their sales tax calculator should be useful if you’re planning to complete everything yourself.
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 your business. For this reason we’ll examine TaxJar’s pricing levels and the features that each of these options can offer you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They say it’s the best plan if you need help with filing requirements or reporting. It includes the tax on sales, four annual AutoFiles for free, as well as a CSV import. With the starter plan, you will be able to access their AI tax recommendations.
If you’re a smaller company owner, this plan will be perfect for you. It might not include all of TaxJar’s features however, it does include the basic features you require.
You can also contact the support team via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking for different from the basic features Professional could be the one for you. It’s priced at $99 but you can increase it if you add custom features.
How different is it from the basic plan?
In addition to accessing each of Starter plan’s options, you also have access to their support via phone access to APIs, as well as the ability to do advanced CSV import. You can also receive 12 free AutoFiles every year.
If you have a massive enterprise, you may want to opt for an upgrade instead. It comes with all the features that you require to aid in your tax preparation. Moreover, they allow unlimited data import integrations as well as Integrations with APIs, teams of members and AutoFiles.
They also have a team dedicated in managing your accounts. They don’t reveal how much the Premium plan is going to cost. TaxJar Shopify Video
However, they did say that this plan is tailor-fit for each user. Therefore, the cost will differ in line with what you require for your company.
It’s a good thing that you don’t have to bet your life on it to find out if the platform is right for you. If you’re still looking into various options, they provide the opportunity to try a free trial for 30 days. This should give you enough time to determine whether the software is a good fit for you.
Pros and Cons
Now that we’ve covered all you need to know about TaxJar let’s take a break. To summarize, here are the advantages and disadvantages of the use of TaxJar to run your business.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers an online sales tax calculator
- Support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only applicable for USA customers
- Owners and accountants should review local laws
The Final Verdict
With everything laid out, TaxJar can be a great platform businesses with numerous sales channels, and that utilizes plenty of platforms. If this sounds like the way you’re doing, then ought to try this.
Not only can it assist you in keeping track of your revenue and products however, it will assist you in meeting your deadlines. It’s also an excellent option for accountants as they have the Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
The use of TaxJar will help you save more time while keeping on top of each deadline and requirement you have to fulfill. If you’re in an area with complex tax laws, this can surely help you wrap your head around it. TaxJar Shopify Video
If handling your taxes is straightforward and straightforward, then TaxJar may be an unnecessary expense. If you only have one or two channels for sales, TaxJar won’t be needed to track all of it. Moreover, if you find the entire process easy to do and you’re comfortable with it, you may be better off doing it by yourself.
FAQ TaxJar Shopify Video
What areas does TaxJar provide API support?
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.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transactions’ amounts are in USdollars. If you’re using another currency, you’ll have to convert it to US$ prior to when TaxJar will calculate the tax.