Taxes are always one of the most difficult things to handle regardless of whether you’re running an enterprise or not. Particularly if you don’t have a background in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is 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 risky. If you overlook one thing it could mean you need to repeat the process!
Almost everyone wants to avoid this step. However, since it’s mandatory, we have no choice.
So what is the best way to deal with it?
We can simplify our lives by using tools like TaxJar.
We’ll look at this popular life-saving device and how it can help you. While this is a long read but you’ll be able to assess whether TaxJar is what you need today.
Do you prefer to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, then let’s get right into it.
What exactly is TaxJar? TaxJar Software As A Service
In 2013, TaxJar was established. TaxJar is an application that automatizes your reports, filings, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of the sales channels you use to make sure you’re in compliance with sales tax requirements. It simplifies the processes that require days to complete and can be completed in a matter of minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
How can this help you?
TaxJar is extensively used by online business owners to make their business more neat and simple. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the first things you’ll need to ensure you have a tax accounting system perfectly integrates with your sales channel. If you’re using multiple sales channels, it is essential to keep everything in place. The last thing you want is to get a penalty for overlooking just one minor detail.
TaxJar allows you to display your key data in one location. That way, there’s no requirement to collect data in multiple channels and then organize it on one platform. All you have to do is connect TaxJar, and the platform will handle the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of the platforms they can integrate with:
TaxJar allows clients to file their sales taxes by hand or using the AutoFile feature. In the purpose of this article, we’ll dig at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all the sales channels you use. When the time is right for filing tax returns for income TaxJar will train you on how to handle the tax returns. It is up to you and your staff to complete everything within the timeframe. TaxJar is there to provide guidance on what you should 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. With this feature, everything is automated, from calculating sales taxes through recording, and then processing it. But, it is possible to incur additional charges if they are not included in the plan you choose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to assist you with your accounting issues. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. Once you’re on the platform, you and your team will have access to all the information you need, like the list of transactions, reports, as well as information.
The greatest benefit of the feature you’ve chosen is it lets you to update your account automatically each day. Not only will they let to know the amount you’ve collected however, they can also help you determine when your next payments are due.
The dashboard allows you to see the sales tax totals in your business. Additionally, you can export the data as CSV format. CSV file in case you require it for your accounting and financial planning processes or if you require it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep the track of all the channels you sell through. This means that you don’t have to scramble for your documents when you need them in a pinch. Even if you already have your accountant, this feature can make them more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will help you plan your money more efficiently. You’ll know exactly how much budget you have for other operating costs.
But what’s even better is that TaxJar offers training and tutorials not only on their platform, but everything that has to do with sales tax. Check out their webinars, guides, as well as their blog to find more info. Apart from that the sales tax calculator is helpful if you’re planning on complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to establish your budget. Some platforms offer superb features, but they can be too costly for the business you run. For this reason we’ll take a look at TaxJar’s pricing levels and what each of these plans can offer. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. The company claims that it’s the best plan for those who need assistance with filing requirements or reporting. It comes with the tax on sales, four 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 small-scale company manager, the plan could be perfect for you. It may not offer all of TaxJar’s features, but it has the essentials that you need.
You can also contact their customer support via their email support chart. You’ll also have access to their integration tools.
If you’re looking for something that is more than the basic features Professional might be the right one for you. It’s priced at $99 but you can increase it by adding custom features.
So how different is it from the starter plan?
In addition to accessing all of the Starter plan’s features, you also get access to their support via phone Access to APIs, phone support, 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 business, you might need to choose an upgrade instead. It includes all of the features needed to aid in your tax preparation. Moreover, they allow unlimited data import integrations as well as API integrationsfor team members as well as AutoFiles.
There is also a team dedicated to managing your account. They don’t reveal how much the Premium plan costs you. TaxJar Software As A Service
However, they did say that this plan is tailor-fit to each user. Therefore, the cost will differ in line with what you require for your business.
Luckily, you don’t have to gamble your money just to see if this platform is for you. If you’re still considering various options, they provide a 30-day free trial. This should be enough time to see whether the service is an excellent fit for you.
Pros and Cons
After we’ve gone over everything 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 for your company.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers on the internet for 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
- Allows you to track 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 for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid out, TaxJar is an excellent platform for companies that have multiple sales channels and uses plenty of platforms. If that sounds like what you’re doing, then you must try TaxJar.
Not only can it aid in tracking the sales and profits of your business however, it will also help you meet the deadlines you set. This is also an excellent opportunity for accountants since they have the Tax Advisor program. There are tips to follow and gain knowledge from their workshops about taxes through it.
The use of TaxJar can allow you to save more time while keeping track of every deadline and obligation you have to meet. If you’re in an area with complex tax laws, this will surely help you wrap your mind around it. TaxJar Software As A Service
If handling your taxes is simple and straightforward, then TaxJar could be a waste of expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to keep track of all of it. In addition, if you’re finding the entire process easy to do, you might be better in doing it all by yourself.
FAQ TaxJar Software As A Service
Which areas does TaxJar provide API assistance?
TaxJar currently works with countries like 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.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions’ amounts are in US$. If you’re using a different currency, you’ll need to convert it into US$ before TaxJar will calculate your tax.