Taxes have always been one of the most difficult tasks to complete regardless of whether you run your own business or not. Particularly if you don’t have any experience in accounting or finance. Tax-related tasks can be overwhelming, especially when your whole day is packed with things to do. In the event that you do not have the funds to employ an accountant, doing it on your own can be dangerous. If you miss one detail it could mean you have to redo things again!
Almost everyone wants to skip this step. But , as it’s a requirement, we have no choice.
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 life-saving tool and explain how it can help you. Even though this is lengthy it is possible to gauge whether TaxJar is what you need in the present.
Prefer video streaming instead? Take a look at 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 TaxJar
Founded in 2013, TaxJar is an application that automatizes your reports, filings, and sales tax calculation. TaxJar is a solution to your entire sales tax life cycle. In addition, you can apply it in all of your channels of sales to ensure that you are in compliance with your sales taxes. It streamlines processes that require days to complete and finish within only a few minutes.
TaxJar has been used in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is extensively used by online business owners to keep everything organized and straightforward. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to make sure you have a tax accounting software perfectly integrates with your sales channel. If you have multiple sales channels, you must maintain everything in line. The most important thing is not to be penalized for overlooking just one minor detail.
TaxJar allows you to display your key metrics in one place. This means that there is no need to gather data from different channels and organize it into a single platform. All you need 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 help with payments. Here’s a list of the platforms they are able to integrate with:
TaxJar allows customers to submit their sales tax by hand or using TaxJar’s AutoFile feature. For our review we’ll look into both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. Once the time comes for the filing of income tax returns The team will guide you on managing them. However, it will be up to you and your team members to finish the tax returns in time. TaxJar is only there to provide guidance on what you need to do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to submit the forms in a manual manner. With this feature, everything is automated, from calculating sales taxes to recording and processing it. There could be extra fees if not part of the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to assist you with your accounting woes. Your orders from your e-commerce channels can be combined into a single dashboard via this platform. Once you’re on the platform you and your team will have access to all the information you need, such as an inventory of your transactions, reports and data.
The best part about this option is the fact that it lets you to update automatically every day. Not only can they help you keep track of how much you’ve collected however, they can also help you determine when your next payments are due.
The dashboard allows you to see the total sales tax for your business. Additionally, you can export the information as the form of a CSV file in case you require it to aid in accounting and financial planning processes or if your team needs it for centralized 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’re in the event of a need. Even if you already have your accountant, this function will aid them in being more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will help you plan your funds better. You’ll know better how much budget you have available for other operating costs.
The best part is that TaxJar offers tutorials and training not only for their platform , but also all things connected to sales tax. Check out their webinars, guides, and blog for more information. Apart from that, their sales tax calculator should be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We are aware of 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 examine TaxJar’s pricing tiers and what each of those options can offer you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. They claim that it’s the best plan to help you with filing requirements or reporting. It also includes sales tax reporting, four autofiles for free each year, and an CSV import. With the starter plan, you will be able to access their AI tax tips.
If you’re a small company manager, the plan should be perfect for you. It may not offer all the features offered by TaxJar but it comes with the basic features you require.
Additionally, you can contact the support team via their email support chart. You’ll also be able to use their integration tools.
If you’re looking for something that is more than the basic features Professional could be the one for you. It starts at $99, however, it could go up if you add custom features.
How different is it from the starter plan?
Apart from having access to all of the Starter plan’s options, you also have access to their support via phone Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you run a large enterprise, you may want to opt for the Premium plan instead. It has all of the features you need to aid in your tax preparation. In addition, they offer unlimited integrations with data imports API integrationsfor team members, and AutoFiles.
They also have a staff who are devoted in managing your accounts. They don’t reveal the price of the Premium plan. will cost you. TaxJar TaxJar
However, they did mention that the plan is custom-made for each user. Therefore, the cost will differ in line with what you require to run your business.
Fortunately, you don’t need to risk your money to find out if the platform is the right one for you. If you’re still considering other options, they have a 30-day free trial. This should give you enough time to determine whether the service is a good fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar Let’s relax. To summarize Here are the pros and cons of using TaxJar to run your business.
- Has the 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
- The company offers a 30-day trial for free.
- It can be integrated with other platforms.
- It allows you to monitor multiple sales channels
- AutoFile limit is based on 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 down, TaxJar provides a fantastic platform to companies with numerous sales channels, and that utilizes numerous platforms. If this sounds like the way you’re doing, then ought to try this.
Not only will it aid in tracking the sales and profits of your business, but it can also help you meet your deadlines. It is also a great platform for an accountant since they offer a Tax Advisor program. You can find tips and get knowledge from their seminars on taxes by using it.
Using TaxJar can allow you to save more time while keeping on top of each deadline and obligation you have to fulfill. If you’re living in a place with complicated tax regulations, this will certainly help you to get your head around the subject. TaxJar TaxJar
However, if managing taxes is easy If it isn’t, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. Moreover, if you find the entire process easy to do, you might be better to do it on your own.
FAQ TaxJar TaxJar
What are the areas in which TaxJar provide API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I connect Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar for easier monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transactions’ amounts are in USdollars. If you’re using another currency, you will need to convert it into US$ prior to when TaxJar can calculate the tax.