Taxes have always been among the hardest things to do regardless of whether you run your own business or not. Even more so if you do not have a background in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re packed with things to do. If you don’t have the budget to engage an accountant doing it on your own can be dangerous. If you make a mistake and you don’t know it, you may need to repeat the process!
Most people want to avoid this step. However, since it’s mandatory to be done, we can’t choose not to.
What is the best way to deal with it?
We can simplify our lives by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and how it can benefit you. Although this is quite lengthy, you should be able to assess whether TaxJar is what you need today.
Prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
For those who like to read, then we’ll dive right into.
What is TaxJar TaxJar State Tax
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. In addition, you can apply it across all of the sales channels you use to make sure you’re in compliance with your sales taxes. It makes the process simpler that could 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 establishments.
How can it help you?
TaxJar is widely used by online business owners to keep everything neat and simple. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the most important things you’ll need to make sure is your tax-reporting system is compatible with your sales channel. If you’re selling through multiple channels, you need to ensure that everything is in order. The last thing you want is to be penalized for overlooking just one minor detail.
TaxJar lets you display your most important data in one location. That way, there’s no need to collect information from multiple sources and organize it into a single platform. All you have to do is to integrate TaxJar, then the system will handle the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of platforms they are able to integrate with:
TaxJar lets customers file their sales taxes either manually or via the AutoFile feature. For this review, we’ll dig at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect the sales channels you use. Once the time comes for filing tax returns for income TaxJar will train you on managing these. But, it is up for you and your team members to complete the process on time. TaxJar is only there to help you understand what you have to do , but not to handle it.
If you would 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 is automated, from calculating sales taxes to recording and processing them. However, there might be extra fees if 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. Your orders from your e-commerce channels can be compiled into one dashboard using this platform. From there you and your team can access everything you need, like the list of transactions, reports and data.
The most appealing aspect of this option is the fact that they allow you to automatically update every day. Not only can they help you know how much you’ve earned, but they also help you determine when your next payments are due.
The dashboard allows you to fully view the sales tax totals for your business. You can also export your data in CSV format. CSV file in case you require it for your process of financial planning and accounting or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep the track of all the channels you sell through. It means you don’t need to search for your documents when you need them in the event of a need. Even when you already have your accountant, this feature will aid them in being more efficient.
Additionally, knowing the figures for your sales tax ahead of time will help you plan your funds better. You’ll be aware of the budget you have available for other operating costs.
But what’s even better is that TaxJar offers training and tutorials not only on their platform, but all things related to sales tax. You can check out their guides, webinars, or blog posts for additional details. In addition their sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb capabilities, but they’re often too costly for the business you run. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of these choices can provide you. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan costs $19. They say it’s the best plan to help you with filing requirements or reporting. It comes with sales tax reporting, 4 annual AutoFiles for free, as well as a CSV import. With the starter plan, you have access to their AI tax tips.
If you’re a small-scale business owner, this plan should be ideal for you. It might not include all of TaxJar’s features but it comes with the essentials that you need.
Additionally, you can contact their support team with their email support chart. Additionally, you’ll have access to their integration features.
If you’re looking to get a bit more than just the basic features Professional could be the one for you. It starts at $99, but it can go higher if you add custom features.
So how different is it from the original plan?
In addition to having access to every one of Starter plan’s features, you also get access to the support of their customer service via phone Access to APIs, phone support, and advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you own a huge company, you may need to choose an upgrade instead. It includes all of the features you need to help with your taxes. In addition, they offer unlimited integrations with data imports API integrations, team members, and AutoFiles.
They also have a team dedicated in managing your accounts. But, they don’t divulge the amount that the Premium plan costs you. TaxJar State Tax
However, they did say that this plan is customized for every user. So the costs will vary according to 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 for you. If you’re still looking into different options, they offer a 30-day free trial. It should give you enough time to determine whether the software is the right choice for you.
Pros and Pros and
We’ve covered everything you need to be aware of TaxJar let’s take a break. To sum it all up we’ll go over the pros and cons of the use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers Taxes on sales online calculator
- Support service team
- The dashboard is easy to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms.
- You can track several 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 check local legislation
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies with many sales channels and utilizes numerous platforms. If that’s what 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. This is also an excellent platform for an accountant since they offer a Tax Advisor program. There are tips to follow and gain knowledge from their workshops on taxes by using it.
Utilizing TaxJar can allow you to get more done while keeping track of every deadline or requirement you need to meet. If you live in an area with complex tax regulations, this will definitely help you get your mind around it. TaxJar State Tax
However, if managing your taxes is simple and straightforward, then TaxJar could be a waste of expense. If you have only one or two sales channels, TaxJar won’t be needed to keep track of everything. Moreover, if you’re finding the entire procedure simple to follow, you might be better off doing it by yourself.
FAQ TaxJar State Tax
What are the areas in which TaxJar provide API support?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. The transactions are in US$. If you’re using a different currency, you’ll have to convert it into USdollars before TaxJar will calculate the tax.