Taxes are always one of the hardest things to do regardless of whether you run your own business or not. More so if you don’t have a background in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is full of things to be done. When you’re not able to afford the budget to hire an accountant, making it your own could be dangerous. If you miss one detail it could mean you need to repeat the process!
Most people want to skipping this step. But , as it’s a requirement to be done, we can’t choose not to.
What can we do about it?
We can always make life easier by using tools like TaxJar.
Here we’ll take a look at this life-saving tool and how it can help you. Even though this is an extensive read, you should be able to gauge whether TaxJar is what you need in the present.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also provide a comprehensive analysis of TaxJar’s features.
If you prefer to read, then we’ll dive right into.
What exactly is TaxJar? TaxJar Tax Categories
The company was founded in 2013 TaxJar is an application that automatizes your reports, filings, and sales tax calculations. It’s a solution for all aspects of your sales tax cycle. Furthermore, you can utilize it across all the sales channels you use to ensure compliance with your sales taxes. 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 establishments.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to make their business more organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to make sure is that your accounting tax system seamlessly works well with your sales channel. If you’re using multiple sales channels, you must maintain everything in line. The final thing you would like is to be penalized for missing a single minor point.
TaxJar allows you to display your critical metrics in one place. That way, there’s no need to collect data in multiple channels and sort it into one platform. All you have to do is connect TaxJar then the system will do the rest.
In addition, TaxJar also integrates with other platforms that help with payment processing. Here’s a list highlighting the platforms they are able to integrate with:
TaxJar allows clients to make sales tax filings either manually or via the AutoFile feature. In the purpose of this article, we’ll look at both.
If you decide to go it alone, TaxJar will allow you to connect all your sales platforms. When the time is right for filing tax returns for income TaxJar will train you on managing them. But, it is up for you and your team members to complete the process in time. TaxJar is only there to guide you on what you have to do but not handle it.
If you 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. Through this feature, everything is automated, from calculating sales tax to recording and processing them. However, there might be additional charges if they are you do not include this feature in the plan you select.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to help you with your accounting issues. All orders made through your e-commerce channels can be compiled into a single dashboard through this platform. From there you and your staff can access everything you need, like a list of your transactions, reports, and the data.
The best part about this option is the fact that it lets you to update automatically every day. They not only let you keep track of how much you’ve earned, but they also help you determine when your next payments are due.
Their dashboard also allows you to fully view the sales tax totals within your company. You can also export the data as a CSV file if you need it to aid in process of financial planning and accounting or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping on top of all the sales avenues you use. This means that you don’t have to scramble for your documents when you need them in the event of a need. Even even if you already have an accountant, this function will make them more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance can help you allocate your money more efficiently. You’ll be aware of the budget you have available for other operating costs.
What’s more is that TaxJar provides training and tutorials and tutorials, not just for their platform but for anything related to sales tax. Check out their webinars, guides as well as their blog to find more information. Additionally their sales tax calculator can be helpful if you’re planning on take on the entire task 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 your business. For this reason we’ll examine TaxJar’s pricing tiers and what each of those plans can offer. Presently, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan is priced at $19. They say it’s the most suitable plan for you if you need help in filing and reporting. It comes with sales tax reporting, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small-scale company owner, this plan will be perfect for you. It might not include all the features offered by TaxJar, but it has all the basics you require.
Additionally, you can contact their customer support via their support chart for email. Additionally, you’ll have access to their integration tools.
If you’re looking to get that is more than the basic features Professional might be the right one for you. It starts at $99, however, it could go up if you add custom features.
What is the difference from the basic plan?
Apart from having access to all of the Starter plan’s options, you also have access to the support of their customer service via phone, API access, 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 go for premium plans instead. It comes with all the features you need to help with your taxes. In addition, they offer unlimited data import integrations Integrations with APIs, teams of members and AutoFiles.
They also have a team that is devoted in managing your accounts. But, they don’t divulge how much the Premium plan costs you. TaxJar Tax Categories
But they did state that the plan is custom-made for every user. The cost of the plan will be different depending on what you need for your business.
It’s a good thing that you don’t have to gamble your money just to determine if this service is right for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. This should give you enough time to see if the platform is an excellent fit 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 we’ll go over the pros and cons of making use of TaxJar for your company.
- Does the plan include the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides on the internet for sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can be integrated with other platforms
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature
- Only applicable for USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything clearly laid out, TaxJar provides a fantastic platform to businesses with numerous sales channels, and that utilizes plenty of platforms. If that’s what you’re doing, then should try this.
Not only will it assist you in keeping track of your products and revenue It can help you meet the deadlines you set. It’s also an excellent opportunity for accountants since they have a Tax Advisor program. There are tips to follow and gain knowledge from their workshops regarding taxes via it.
Using TaxJar can allow you to reduce time and keep track of every deadline and requirement you have to fulfill. If you live in a region with a lot of tax regulations, this will surely help you wrap your head around it. TaxJar Tax Categories
However, if managing your taxes is straightforward, then TaxJar could be a waste of expense. If you have only one or two channels of sales, TaxJar won’t be needed to track all of it. In addition, if you find the whole process easy to do and you’re comfortable with it, you may be better in doing it all by yourself.
FAQ TaxJar Tax Categories
What are the areas in which TaxJar provide API assistance?
TaxJar is currently assisting countries such as the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions are in USdollars. If you’re using a different currency, you’ll have to convert it into US$ before TaxJar will calculate your tax.