Taxes are always one of the hardest things to do, whether you’re running an enterprise or not. Particularly if you don’t have a background in accounting or finance. Tax-related issues aren’t easy, particularly when your whole day is packed with things to do. When you’re not able to afford enough money to employ an accountant, doing it on your own can be risky. If you miss one detail it could mean you have to do it all over again!
Almost everyone wants to avoid this step. But , as it’s a requirement, we have no choice.
So , 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 life-saving tool and explain how it can benefit you. Even though this is a long read it is possible to determine if TaxJar is the tool you require today.
Do you prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
For those who like to read, then we’ll dive right into.
What is TaxJar? TaxJar Source Vs Destination Based
The company was founded in 2013 TaxJar is an application that automatizes your filings, reports, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. Additionally, you can use it across all of the sales channels you use to ensure that you are in compliance with sales tax requirements. It streamlines processes that can take days to complete, and can be completed in a matter of only a few minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
What can it do to help you?
TaxJar is extensively used by owners of online businesses to keep everything simple and organized. Let’s look into their features and services.
Services and features
One of the most important things you’ll need to make sure you have a tax accounting software is compatible along with sales funnels. If you have multiple sales channels, it is essential to keep everything in place. The final thing you would like is to be penalized for overlooking just one minor detail.
TaxJar allows you to show your key data in one location. This means that there is no need to gather data in multiple channels and then organize it on one platform. All you need to do is connect TaxJar it will do the rest.
In addition, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list of the platforms they are able to integrate with:
TaxJar allows clients to file their sales taxes by hand or using the AutoFile feature. For this review, we’ll dig into both.
If you decide to go it alone, TaxJar will allow you to connect all of the sales channels you use. When it comes time to the filing of income tax returns The team will guide you on how to manage them. However, it will be up for you and your team to finish the tax returns on time. TaxJar is there to help you understand what you should do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. Through this feature, everything will be automated from calculating sales tax through recording, and then processing them. However, there might be additional costs if the feature is not part of the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to ease your accounting problems. All orders made through your e-commerce channels can be combined into a single dashboard via this platform. From there you and your team can access everything you need, like an inventory of your transactions, reports, as well as the data.
The greatest benefit of this feature is that it lets you to update your account automatically each day. Not only will they let you know 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 sales tax totals in your business. It is also possible to export the information as a CSV file, if you want to use it to aid in accounting and financial planning processes or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar helps you organize and keep track of all of the channels you sell through. This means that you don’t have to search for your documents whenever you’re in the event of a need. Even if you already have your accountant, this function will aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time can help you allocate your money more efficiently. You’ll know exactly how much budget you have to cover other operating costs.
But what’s even better is that TaxJar offers training and tutorials, not just for their platform but for anything related to sales tax. You can look through their guides, webinars, and blog for more info. Apart from that their sales tax calculator should be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms offer superb 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 choices can provide you. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They say it’s the most suitable plan for you for those who need assistance in filing and reporting. It comes with taxes on sales and sales as well as four autofiles for free each year, and a CSV import. Even with the starter plan, you can access their AI tax tips.
If you’re a smaller company proprietor, then this program should be ideal for you. It may not have all of TaxJar’s features however, it does include all the basics you require.
You can also contact the support team via their support chart for email. You’ll also be able to use their integration tools.
If you’re looking to get a bit more than just the standard features Professional could be the one for you. It starts at $99, but it can go higher by adding custom features.
So how different is it from the original plan?
In addition to accessing all of the Starter plan’s features, you also have the support of their customer service via phone, API access, and the ability to do advanced CSV import. You can also get 12 AutoFiles for free each year.
If you run a large enterprise, you may want to choose an upgrade instead. It comes with all the features that you require to help with your taxes. Moreover, they allow unlimited import integrations of data Integrations with APIs, teams of users as well as AutoFiles.
They also have a team who are devoted for managing the account. However, they don’t disclose how much the Premium plan will cost you. TaxJar Source Vs Destination Based
However, they did say that the plan is custom-made for each user. Therefore, the cost will differ according to what you require for your company.
Fortunately, you don’t need to risk your money to determine if this service is the right one for you. If you’re still looking into different options, they offer the opportunity to try a free trial for 30 days. This should be enough time to determine whether the software is a good fit for you.
Pros and Cons
After we’ve gone over everything you need to be aware of TaxJar let’s take a break. To summarize Here are the advantages and disadvantages of using TaxJar to run your business.
- Has a Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides Taxes on sales online 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
- 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 recheck local legislations
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to businesses with many sales channels and utilizes numerous platforms. If this sounds like the way you’re doing, then should try this.
Not only can it assist you in keeping track of your revenue and products however, it will also help you meet the deadlines you set. It’s also an excellent platform for an accountant since they provide tax Advisor program. You can find tips and get knowledge from their seminars about taxes through it.
Using TaxJar can allow you to reduce time and keep track of every deadline and requirement you have to meet. If you live in an area with complex tax laws, this can surely help you wrap your mind around it. TaxJar Source Vs Destination Based
If handling taxes is easy, then TaxJar may be an unnecessary expense. If you only have one or two sales channels, TaxJar won’t be needed to keep track of all of it. In addition, if you’re finding the entire procedure simple to follow, you might be better in doing it all by yourself.
FAQ TaxJar Source Vs Destination Based
What are the areas in which TaxJar provide API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in US$. If you’re using another currency, you’ll have to convert it into US$ before TaxJar can calculate the tax.