Taxes have always been among the most difficult things to handle regardless of whether you run an enterprise or not. Even more so if you do not have any experience in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is full of things to be done. If you don’t have enough money to hire an accountant, making it your own could be risky. If you overlook one thing it could mean you have to do it all over 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 about it?
We can always make life easier by using tools like TaxJar.
Here we’ll take a look at this popular life-saving tool and explain how it can help you. While this is a long read, you should be able to gauge whether TaxJar is the tool you require today.
Are you looking video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
But for those who prefer to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Vs Godaddy Bookkeeping
The company was founded in 2013 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. Additionally, you can use it across all your channels of sales to ensure compliance with sales taxes. It simplifies the processes that take days to complete and is completed in just a few just a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is used extensively by online business owners to make their business more simple and organized. Let’s take a look at the benefits and features of TaxJar.
Services and features
One of the first things you’ll need to ensure is your tax-reporting software is compatible along with sales funnels. If you have multiple sales channels, it is essential to ensure that everything is in order. The most important thing is not to face a penalty due to not paying attention to a minor thing.
TaxJar lets you display your key metrics in one place. So, there’s no requirement to collect information from multiple sources and then organize it on one platform. All you need to do is integrate TaxJar, and the platform will handle the rest.
Apart from that, TaxJar also integrates with other platforms to assist with payments. Here’s a list of platforms they are able to integrate with:
TaxJar lets customers file their sales taxes by hand or using the AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you choose to go it alone, TaxJar will allow you to connect all of your sales platforms. When it comes time to the filing of income tax returns, the team will instruct you on how to handle the tax returns. However, it will be up to you and your team members to complete everything in time. TaxJar is only there to provide guidance on what you should 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 fill out all forms by hand. This feature will ensure that everything will be automated from calculating sales taxes through recording, and then processing them. But, it is possible to incur extra fees if not included in the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting issues. Your orders from your e-commerce channels can be put together into a single dashboard through this platform. Once you’re on the platform you and your staff will have access to all the information you require, including the list of transactions, reports, as well as information.
The greatest benefit of this option is the fact that it lets you to update automatically every day. Not only will they let you keep track of how much you’ve accumulated, but they also help you keep track of when the next payment is due.
The dashboard allows users to view in detail the sales tax totals in your business. You can also export the data as CSV format. CSV file if you need it to aid in financial planning and accounting processes or if your team needs it for central reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all your sales channels. That means you won’t have to search for your documents whenever you’re in the event of a need. Even even if you already have an accountant, this feature can help them be more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will allow you to allocate your funds better. You’ll know better how much budget you have to cover other operational costs.
What’s more is that TaxJar offers training and tutorials not only on their platform, but all things that has to do with sales tax. Check out their guides, webinars, as well as their blog to find more information. In addition the sales tax calculator can be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Some platforms offer superb features, but they can be too costly for your business. For this reason, we’ll look into TaxJar’s pricing levels and what each of these plans can offer. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan costs $19. The company claims that it’s the most effective plan if you need help with filing requirements and reporting. It includes sales tax reporting, four annual AutoFiles for free, as well as the option of a CSV import. Even with the starter plan, you have access to their AI tax advice.
If you’re a small-scale business proprietor, then this program will be perfect for you. It may not have all the features offered by TaxJar but it comes with the basic features you require.
You can also contact their customer support via their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking for that is more than the standard features Professional may be the best option for you. It starts at $99, however, it could go up by adding custom features.
So how different is it from the starter plan?
Apart from having access to all of the Starter plan’s features, you also have the support of their customer service via phone, API access, and sophisticated CSV import. You can also get 12 AutoFiles for free each year.
If you own a huge company, you may need to go for premium plans instead. It comes with all the features you need to aid in your tax preparation. Moreover, they allow unlimited data import integrations, API integrations, team users, and AutoFiles.
There is also a team dedicated for managing the account. But, they don’t divulge the amount that the Premium plan costs you. TaxJar Vs Godaddy Bookkeeping
However, they did mention that this plan is customized for every user. The cost of the plan will be different according to what you require for your business.
Luckily, you don’t have to risk your money to determine if this service is right for you. If you’re still looking into different options, they offer the opportunity to try a free trial for 30 days. This should give you enough time to gauge whether the software is a good fit for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a break. To sum it all up Here are the pros and cons of making use of TaxJar for your business.
- There is a Tax Advisor option for some plans
- AutoFile features to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Support Service Team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It is able to be integrated with other platforms
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature.
- Only applicable for USA customers.
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid out TaxJar provides a fantastic platform to businesses with numerous sales channels, and that utilizes many platforms. If this sounds like the way you’re doing, then should try this.
Not only will it aid in tracking your revenue and products, but it can assist you in meeting the deadlines you set. This is also an excellent opportunity for accountants since they offer the Tax Advisor program. You can find tips and gain knowledge from their workshops on taxes by using it.
Utilizing TaxJar can help you get more done while keeping the track of each deadline and requirement you have to fulfill. If you’re in a region with a lot of tax laws, this can surely help you wrap your head around the subject. TaxJar Vs Godaddy Bookkeeping
If handling taxes is easy and straightforward, then TaxJar could be a waste of 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 procedure simple to follow and you’re comfortable with it, you may be better off doing it on your own.
FAQ TaxJar Vs Godaddy Bookkeeping
What areas does TaxJar provide API support?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. All of the transactions are in USdollars. If you’re using a different currency, you’ll need to convert it into USdollars before TaxJar can calculate the tax.