Taxes have always been one of the most difficult tasks to complete regardless of whether you run a business or not. Even more so if you do not have a background in finance or accounting. Tax-related issues aren’t easy, particularly when you’re filled with tasks to complete. In the event that you do not have enough money to hire an accountant, doing it on your own can be risky. If you miss one detail and you don’t know it, you may have to redo things again!
Most people want to avoid this step. However, since it’s mandatory to be done, we can’t choose not to.
So what can we do ?
We can always simplify our lives by using tools like TaxJar.
We’ll look at this popular life-saving device and how it can help you. Although this is quite an extensive read, you should be able to assess whether TaxJar is exactly what you need right now.
Are you looking watching videos rather than watch them? 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 let’s get right into it.
What is TaxJar TaxJar Tutorial
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. It’s a solution for your entire sales tax life cycle. In addition, you can apply it in all of the sales channels you use to ensure that you are in compliance with your sales taxes. It simplifies the processes that can take days to complete, and finish within just a few minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is extensively used by online business owners to ensure that everything is organized and straightforward. Let’s explore the benefits and features of TaxJar.
Services and features
One of the first things you’ll need to ensure is your tax-reporting system is compatible in conjunction with the sales channels you use. If you have multiple sales channels, you need to maintain everything in line. The final thing you would like is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to show your key metrics in one spot. That way, there’s no requirement to collect data from different channels and then organize it on a single platform. All you need to do is connect TaxJar, it will take care of the rest.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making 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 our review we’ll dig into both.
If you choose to manually file your tax returns, TaxJar will allow you to connect those sales tools. Once the time comes for filing tax returns for income The team will guide you on managing them. But, it is up for you and your staff to complete the process within the timeframe. TaxJar is there to guide you on 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 submit all forms by hand. This feature will ensure that everything will be automated, from calculating sales taxes through recording, and then processing it. However, there might be additional costs if the feature is not included in the plan you select.
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 one dashboard using this platform. From there, you and your team can access everything you require, including an inventory of your transactions, reports, and information.
The greatest benefit of this feature is that it lets you to automatically update every day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard also allows users to view in detail the overall sales taxes within your company. Additionally, you can export the data to a CSV file if you need it to aid in financial planning and accounting processes or if you require it to run centralized reports.
Training and Streamlining
TaxJar assists in organizing and keeping track of all of the channels you sell through. That means you won’t have to scramble for your documents when you’re in the event of a need. Even if you already have your accountant, this function can aid them in being more efficient.
Additionally, knowing the figures for the sales tax you pay in advance will allow you to allocate your money more efficiently. You’ll be aware of the budget you have to cover other operational expenses.
But what’s even better is that TaxJar offers tutorials and training not only for their platform but everything related to sales tax. You can check out their guides, webinars, and blog for more details. In addition their sales tax calculator should be beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to set your budget. Some platforms provide amazing capabilities, but they’re often too costly for your business. That’s why for this section we’ll take a look at TaxJar’s pricing tiers and the features that each of these plans can offer. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. They say it’s the most suitable plan for you to help you in filing and reporting. It comes with taxes on sales and sales as well as 4 autofiles for free each year, and the option of a CSV import. Even with the starter plan, you can access their AI tax recommendations.
If you’re a small company owner, this plan could be perfect for you. It may not offer all the features offered by TaxJar, but it has the essentials that you need.
In addition, you can reach their support team with their support chart for email. You’ll also have access to their integration tools.
If you’re looking to get different from the basics Professional may be the best option for you. The price starts at $99 but you can increase it when you add additional features.
How different is it from the basic 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, as well as sophisticated CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you run a large company, you may need to opt for premium plans instead. It has all of the features needed to make your tax filing easier. Additionally, they permit unlimited data import integrations, Integrations with APIs, teams of members and AutoFiles.
They also have a staff who are devoted to managing your account. They don’t reveal the price of the Premium plan. is going to cost. TaxJar Tutorial
However, they did mention that this plan is customized for every user. Therefore, the cost will differ in line with 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 considering other options, they have a 30-day free trial. This should give you enough time to see whether the service is a good fit for you.
Pros and Cons
Now that we’ve covered all you should be aware of TaxJar let’s take a breather. To sum it all up Here are the advantages and disadvantages of using TaxJar to run your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers an online sales tax calculator
- Support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It is able to be integrated 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 applicable to USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything clearly laid down, TaxJar provides a fantastic platform to businesses with multiple sales channels and uses plenty of platforms. If this sounds like the way you’re doing, then you should try this.
It’s not just a way to assist you in keeping track of your products and revenue, but it can help you meet the deadlines you set. This is also an excellent option for accountants as they have tax Advisor program. There are tips to follow and get knowledge from their seminars regarding taxes via it.
Using TaxJar will help you save more time while keeping the track of each deadline and obligation you have to fulfill. If you’re in a region with a lot of tax laws, this will certainly help you to get your head around the subject. TaxJar Tutorial
But if handling taxes is easy, then TaxJar may be an unnecessary expense. If you’re only dealing with one or two channels for 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 off doing it by yourself.
FAQ TaxJar Tutorial
What areas does TaxJar provide API support?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify together with 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 cannot convert currencies. All of the transactions are in USdollars. If you’re using a different currency, you’ll have to convert it into USUSD prior to when TaxJar can calculate the tax.