Taxes are always one of the most difficult things to handle, whether you’re running an enterprise or not. Even more so if you do not have a degree in finance or accounting. Tax-related work can be overwhelming, particularly when you’re full of things to be done. In the event that you do not have the budget to engage an accountant making it your own could be risky. If you miss one detail it could mean you need to repeat the process!
Nearly everyone would prefer to avoid 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 simplify our lives by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and explain how it can help you. Although this is quite lengthy, you should be able to determine if TaxJar is exactly what you need right now.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full review of the features offered by TaxJar.
But for those who prefer to read, then let’s get right into it.
What is TaxJar? TaxJar Tax Reporting
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculation. It’s a solution for the entire life cycle. Furthermore, you can utilize it in all of the sales channels you use to ensure compliance with your sales taxes. It simplifies the processes that take days to complete and finish within just 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 keep everything organized and straightforward. Let’s look into the features and services offered by TaxJar.
Services and features
One of the first things you’ll need to make sure is that your accounting tax software is compatible in conjunction with the sales channels you use. If you’re selling through multiple channels, it is essential to ensure that everything is in order. The most important thing is not to get a penalty for overlooking just one minor detail.
TaxJar allows you to display your key metrics in one spot. So, there’s no requirement to collect data in multiple channels and organize it into a single platform. All you have to do is connect TaxJar and the platform will take care of all the rest.
Other than that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows clients to make sales tax filings either manually or via the AutoFile feature. For this review, we’ll take a look into both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all of those sales tools. When it comes time to filing income tax returns, the team will instruct you on how to manage these. But, it is up to you and your staff to finish the tax returns in time. TaxJar will only guide you on what you should do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything is automated, from calculating sales tax in order to record and process them. There could be extra fees if you do not include this feature in the plan you select.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to assist you with your accounting problems. The orders you place through your online channels can be put together into a single dashboard via this platform. From there you and your team will have access to all the information you require, including the list of transactions, reports, as well as the data.
The most appealing aspect of the feature you’ve chosen is it lets you to automatically update every day. Not only can they help you know how much you’ve collected however, they can also help you keep track of when the next payment is due.
Their dashboard can also allow users to view in detail the sales tax totals in your business. Additionally, you can export the data to CSV format. CSV file if you need it for your process of financial planning and accounting or if your team needs it for central reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of the sales avenues you use. It means you don’t need to search for your documents when you need them in a pinch. Even when you already have your accountant, this function can make them more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your funds better. You’ll know better how much budget you have for other operational expenses.
What’s more is that TaxJar offers training and tutorials not only on their platform, but all things related to sales tax. You can look through their guides, webinars, and blog for more info. In addition, their sales tax calculator is useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to establish your budget. Some platforms provide amazing capabilities, but they’re often too costly for your business. For this reason, we’ll look into TaxJar’s pricing structures and what each of those options can offer you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan costs $19. The company claims that it’s the best plan to help you with filing requirements or reporting. It comes with the tax on sales, 4 free yearly AutoFiles, and a CSV import. Even with the starter plan, you have access to their AI tax tips.
If you’re a smaller company owner, this plan will be perfect for you. It may not offer all the features offered by TaxJar however, it does include all the basics you require.
In addition, you can reach their customer support via their email support chart. You’ll also have access to their integration features.
If you’re looking to get that is more than the basics and options, then the Professional plan may be the best option for you. The price starts at $99 but it can go higher when you add additional features.
How different is it from the basic plan?
Apart from having access to all of the Starter plan’s features, you also have their phone customer support access to APIs, as well as advanced CSV import. You can also receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose the Premium plan instead. It comes with all the features you need to make your tax filing easier. Additionally, they permit unlimited import integrations of data API integrations, team users as well as AutoFiles.
There is also a team who are devoted in managing your accounts. However, they don’t disclose how much the Premium plan will cost you. TaxJar Tax Reporting
But they did state that this plan is tailor-fit to each user. Therefore, the cost will differ according to what you require for your business.
It’s a good thing that you don’t have to risk your money to see if this platform is for you. If you’re still looking into other options, they have a 30-day free trial. It should give you enough time to determine if the platform is an excellent fit for you.
Pros and Cons
We’ve covered everything you must know about TaxJar Let’s relax. To summarize Here are the pros and cons of using TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms
- You can track several sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature.
- Only valid for USA customers.
- Owners and accountants should review local laws
The Final Verdict
With everything laid out, TaxJar can be a great platform businesses with numerous sales channels, and that utilizes many platforms. If that sounds like what you’re doing, then you ought to try this.
Not only can it aid in tracking your products and revenue however, it will help you meet the deadlines you set. This is also an excellent option for accountants as they have a Tax Advisor program. There are tips to follow and get knowledge from their seminars on taxes by using it.
Using TaxJar can help you get more done while keeping on top of each deadline or requirement you need to meet. If you’re in a region with a lot of tax laws, this can definitely help you get your head around the subject. TaxJar Tax Reporting
If handling your taxes is simple If it isn’t, then TaxJar may be an unnecessary 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. If you’re finding the entire procedure simple to follow, you might be better in doing it all by yourself.
FAQ TaxJar Tax Reporting
What are the areas in which TaxJar provide API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify into TaxJar?
Yes. You can connect your Shopify account with TaxJar to facilitate monitoring and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transaction amounts are n USdollars. If you’re using another currency, you’ll have to convert it into USdollars before TaxJar can calculate your tax.