Taxes are always one of the hardest things to do regardless of whether you’re running your own business or not. Particularly if you don’t have a background in finance or accounting. Tax-related work can be overwhelming, especially when you’re filled with tasks to complete. When you’re not able to afford the budget to hire an accountant, performing the task on your own can be risky. If you miss one detail and you don’t know it, you may need to repeat the process!
Most people want to avoid this step. But , as it’s a requirement and mandatory, there’s no other choice.
So , what can we do ?
It is always possible to make life easier by using tools like TaxJar.
We’ll look at this popular life-saving tool and how it can help you. Although this is quite an extensive read, you should be able to assess whether TaxJar is what you need right now.
Do you prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
For those who like to read, let’s get right into it.
What exactly is TaxJar? TaxJar Smartcalcs
In 2013, TaxJar was established. 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. Additionally, you can use it across all your channels of sales to make sure you’re in compliance with sales taxes. It simplifies the processes that can take days to complete, and finish within minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is simple and organized. Let’s explore the benefits and features of TaxJar.
Features and services
One of the most important things you’ll need to make sure is that your accounting tax platform perfectly integrates along with sales funnels. If you’re using multiple sales channels, you must ensure that everything is in order. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to display your key metrics in one place. That way, there’s no need to collect information from multiple sources and organize it into a single platform. All you need to do is to integrate TaxJar it will handle the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms they can integrate with:
TaxJar allows clients to file their sales taxes either manually or via TaxJar’s AutoFile feature. In our review we’ll look at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all your sales platforms. Once the time comes for filing tax returns for income TaxJar will train you on how to handle them. But, it is up for you and your staff to finish the tax returns on time. TaxJar is only there to guide you on what you need to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out any forms manually. Through this feature, everything will be automated from calculating sales tax through recording, and then processing them. But, it is possible to incur extra fees if you do not include this feature in the plan you select.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting problems. Your orders from your e-commerce channels can be combined into one dashboard using this platform. Once you’re on the platform, you and your team will have access to all the information you require, including the list of transactions, reports, and information.
The greatest benefit of this option is the fact that they allow you to update automatically every day. They not only let you know 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.
Their dashboard can also allow users to view in detail the overall sales taxes for your business. It is also possible to export the information to CSV format. CSV file, if you want to use it in your financial planning and accounting processes or if you require it to run centralized reports.
Streamlining and Training
TaxJar helps you organize and keep track of all of the sales avenues you use. It means you don’t need to search for your documents whenever you’re when you’re in a pinch. Even even if you already have an accountant, this function can aid them in being more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will allow you to allocate your funds better. You’ll know better how much budget you have available for other operating expenses.
What’s more is that TaxJar provides training and tutorials not only for their platform , but also everything related to sales tax. You can look through their guides, webinars, and blog for more details. Additionally their sales tax calculator should be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms provide amazing features, but they can be too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing levels and the features that each of these options can offer you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan is priced at $19. The company claims that it’s the best plan if you need help in filing and reporting. It also includes taxes on sales and sales as well as 4 autofiles for free each year, and an CSV import. Even with the starter plan, you have access to their AI tax recommendations.
If you’re a smaller company manager, the plan could be ideal for you. It may not offer all the features of TaxJar however, it does include all the basics you require.
In addition, you can reach their support team with their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking to get different from the standard features Professional could be the one for you. It’s priced at $99 however, it could go up if you add custom features.
So how different is it from the starter plan?
Apart from having access to all of the Starter plan’s features, you also have their support via phone Access to APIs, phone support, and sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you run a large business, you might need to opt for an upgrade instead. It comes with all the features you need to make your tax filing easier. Moreover, they allow unlimited import integrations of data as well as Integrations with APIs, teams of members, and AutoFiles.
They also have a staff who are devoted in managing your accounts. However, they don’t disclose the amount that the Premium plan costs you. TaxJar Smartcalcs
However, they did mention that this plan is customized for every user. So the costs will vary according to what you require to run your business.
Luckily, you don’t have to gamble your money just to find out if the platform is the right one for you. If you’re still considering other options, they have 30 days of free trial. This should be enough time to gauge whether the service is the right choice for you.
Pros and Cons
Now that we’ve covered all you need to be aware of TaxJar let’s take a breather. To sum it all up Here are the advantages and disadvantages of the use of TaxJar for your company.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides on the internet for sales tax calculator.
- Has support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is able to be integrated 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 to USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid down, TaxJar is an excellent platform for companies with many sales channels and utilizes many platforms. If that sounds like what you do, then you must try TaxJar.
It’s not just a way to assist you in keeping track of the sales and profits of your business however, it will also help you meet the deadlines you set. This is also an excellent platform for an accountant since they offer a Tax Advisor program. You can get tips and gain knowledge from their workshops about taxes through it.
Using TaxJar will help you reduce time and keep track of every deadline and obligation you have to meet. If you live in a region with a lot of tax laws, this will surely help you wrap your head around the subject. TaxJar Smartcalcs
But if handling your taxes is straightforward If it isn’t, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to track all of it. If you find the entire procedure simple to follow and you’re comfortable with it, you may be better in doing it all on your own.
FAQ TaxJar Smartcalcs
What areas does TaxJar provide API assistance?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All transaction amounts are n US$. If you’re using a different currency, you’ll have to convert it into USdollars before TaxJar determines your tax.