Taxes have always been among the most difficult things to handle regardless of whether you run a 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 your whole day is 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 make a mistake it could mean you have to do it all over again!
Nearly everyone would prefer 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 make life easier by using tools like TaxJar.
This article will take a look at this popular life-saving tool and explain how it can help you. Even though this is a long read, you should be able to gauge whether TaxJar is exactly what you need today.
Do you 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 let’s get right into it.
What is TaxJar TaxJar Vs Avatax
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 the entire life cycle. In addition, you can apply it in all of your sales channels to ensure compliance with sales tax requirements. It makes the process simpler that could take days to complete and finish within minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services and even medical establishments.
How can this help you?
TaxJar is widely used by online business owners to keep everything simple and organized. Let’s take a look at the features and services offered by TaxJar.
Services and features
One of the most important things you’ll need to ensure is your tax-reporting system seamlessly works well with your sales channel. If you’re using multiple sales channels, it is essential to keep everything in place. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to display your key metrics in one place. That way, there’s no need to collect data from different channels and organize it into a single platform. All you have to do is to integrate TaxJar it will handle the rest.
Apart from that, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to file their sales taxes either manually or via the AutoFile feature. For the purpose of this article, we’ll look at both.
If you decide to go it alone, TaxJar will allow you to connect all the sales channels you use. When it comes time to the filing of income tax returns TaxJar will train you on how to handle the tax returns. But, it is up for you and your staff to finish the tax returns in time. TaxJar is there to guide you on what you need to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. With this feature, everything will be automated, from calculating sales taxes in order to record and process it. However, there might be extra fees if not part of the plan you choose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to ease your accounting problems. The orders you place through your online channels can be compiled into a single dashboard through this platform. Once you’re on the platform you and your team can access everything you need, like a list of your transactions, reports, and the data.
The greatest benefit of this option is the fact that they allow you to update your account automatically each day. They not only let you keep track of how much you’ve earned however, they can also help you determine when your next payments are due.
Their dashboard also allows users to view in detail the overall sales taxes for your business. Additionally, you can export the data in CSV format. CSV file in case you require it to aid in financial planning and accounting processes or if you require it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all the channels you sell through. This means that you don’t have to scramble for your documents when you’re when you’re in a pinch. Even even if you already have an accountant, this function can help them be more efficient.
Additionally, knowing the figures for your sales tax in advance will help you plan your funds better. You’ll be aware of the budget you have to cover other operational costs.
The best part is that TaxJar offers tutorials and training, not just for their platform , but also all things related to sales tax. Check out their webinars, guides, or blog posts for additional information. Apart from that their sales tax calculator should be 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 set your budget. Some platforms provide amazing features, but they’re sometimes too costly for your business. For this reason we’ll take a look at TaxJar’s pricing levels and what each of these plans can offer. Presently, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan is priced at $19. The company claims that it’s the most suitable plan for you for those who need assistance with filing requirements and reporting. It also includes taxes on sales and sales as well as four autofiles for free each year, and a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a small-scale business proprietor, then this program could be ideal for you. It may not have all of TaxJar’s features, but it has the basic features you require.
You can also contact their customer support via their support chart for email. You’ll also have access to their integration capabilities.
If you’re looking to get that is more than the basic features, then the Professional plan might be the right one for you. It starts at $99, but you can increase it when you add additional 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 have their phone customer support Access to APIs, phone support, and advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you have a massive company, you may need to choose premium plans instead. It includes all of the features needed to make your tax filing easier. Additionally, they permit unlimited data import integrations, API integrationsfor team users, and AutoFiles.
They also have a staff dedicated to managing your account. They don’t reveal the price of the Premium plan. costs you. TaxJar Vs Avatax
However, they did mention that this plan is customized to each user. So the costs will vary according to what you require to run your business.
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 considering other options, they have 30 days of free trial. It should give you enough time to see if the platform is an excellent fit for you.
Pros and Cons
After we’ve gone over everything you need to be aware of TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of using TaxJar for your company.
- There is a Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides Taxes on sales online calculator
- Support service team
- The dashboard is easy to navigate
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms.
- Allows you to track multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only applicable for USA customers.
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid out, TaxJar can be a great platform companies that have multiple sales channels and uses plenty of platforms. If this sounds like the way you’re doing, then must try TaxJar.
Not only will it aid in tracking your revenue and products, but it can assist you in meeting the deadlines you set. It’s also an excellent platform for an accountant since they have tax Advisor program. There are tips to follow and learn from their sessions regarding taxes via it.
Utilizing TaxJar can allow you to save more time while keeping on top of each deadline and obligation 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 the subject. TaxJar Vs Avatax
However, if managing your taxes is simple If it isn’t, then TaxJar might not be a good investment. If you only have one or two channels of sales, TaxJar won’t be needed to track everything. If you’re finding the entire procedure easy to complete then you’re better off doing it on your own.
FAQ TaxJar Vs Avatax
Which areas does TaxJar offer API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with 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. All of the transactions’ amounts are in USdollars. If you’re using a different currency, you’ll need to convert it into USdollars before TaxJar can calculate the tax.