Taxes have always been among the hardest things to do regardless of whether you run your own business or not. Even more so if you do not have any experience in accounting or finance. Tax-related issues can be overwhelming, especially when you’re filled with tasks to complete. If you don’t have enough money to hire an accountant, making it your own could be dangerous. If you miss one detail, you might have to redo things again!
Almost everyone wants to skipping this step. But since it’s required to be done, we can’t choose not to.
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 well-known life-saving tool and how it can benefit you. Although this is quite lengthy, you should be able to assess whether TaxJar is the tool you require in the present.
Do you prefer video streaming instead? Check out this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
If you prefer to read, let’s dive right in.
What exactly is TaxJar? TaxJar Vs Simple Sales Tax
Founded in 2013, TaxJar is a platform that helps automate 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 of your channels of sales to ensure that you are in compliance with sales taxes. It streamlines processes that require days to complete and is completed in just a few minutes.
TaxJar is used in different industries such as food and beverage businesses, SaaS, retail, services and even medical establishments.
How can this help you?
TaxJar is widely used by owners of online businesses to make their business more organized and straightforward. Let’s look into their features and services.
Services and features
One of the first things you’ll need to ensure is that your accounting tax software seamlessly works well with your sales channel. If you’re selling through multiple channels, you must maintain everything in line. The last thing you want is to be penalized for missing a single minor point.
TaxJar allows you to display your key metrics in one spot. This means that there is no need to gather information from multiple sources and then organize it on one platform. All you have to do is integrate TaxJar, it will take care of the rest.
Apart from that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of the platforms they can integrate with:
TaxJar allows customers to file their sales taxes manually or through the AutoFile feature. For our review we’ll look at both.
If you choose to go it alone, TaxJar will allow you to connect your sales platforms. Once the time comes for the filing of income tax returns The team will guide you on how to manage the tax returns. It is up for you and your team members to finish the tax returns on time. TaxJar is only there to guide you on what you have to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling – that means you won’t need to fill out the forms in a manual manner. This feature will ensure that everything is automated, from calculating taxes on sales to recording and processing them. There could be extra fees if not part of the plan you chose.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to ease your accounting issues. The orders you place through your online channels can be put together into a single dashboard through this platform. From there, you and your team can access everything you require, including an inventory of your transactions, reports, as well as the data.
The greatest benefit of this feature is that it allows you to update your account automatically each day. Not only will they let to know the amount you’ve collected however, they can also help you determine when your next payments are due.
The dashboard allows you to see the sales tax totals in your business. You can also export the data to CSV format. CSV file in case you require it for your process of financial planning and accounting or if your team requires it for central reporting.
Training and Streamlining
TaxJar helps you organize and keep the track of all the sales avenues you use. It means you don’t need to scramble for your documents when you need them in the event of a need. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time can help you allocate your money more efficiently. You’ll know better how much budget you have to cover other operational costs.
The best part is that TaxJar provides training and tutorials, not just on their platform, but all things that has to do with sales tax. You can look through their guides, webinars, and blog for more information. Additionally the sales tax calculator is useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms provide amazing capabilities, but they’re often too costly for your business. For this reason we’ll examine TaxJar’s pricing tiers and what each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. The company claims that it’s the most suitable plan for you if you need help with filing requirements and reporting. It comes with taxes on sales and sales as well as four free yearly AutoFiles, and the option of a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a small business proprietor, then this program should be perfect for you. It may not offer all of TaxJar’s features, but it has all the basics 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 something a bit more than just the basic features, then the Professional plan might be the right 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 every one of Starter plan’s features, you also have the support of their customer service via phone, API access, and the ability to do advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you have a massive business, you might need to go for an upgrade instead. It includes all of the features you need to help with your taxes. In addition, they offer unlimited integrations with data imports as well as Integrations with APIs, teams of users as well as AutoFiles.
They also have a staff that is devoted to managing your account. They don’t reveal the price of the Premium plan. costs you. TaxJar Vs Simple Sales Tax
But they did state that this plan is customized to each user. So the costs will vary depending on what you need for your company.
Luckily, you don’t have to gamble your money just to find out if the platform is the right one for you. If you’re still considering various options, they provide 30 days of free trial. This should be enough time to see whether the service is the right choice for you.
Pros and Cons
We’ve covered everything you must know about TaxJar Let’s relax. To sum it all up, here are the pros and cons of using TaxJar to run your business.
- Has a Tax Advisor option for some plans
- AutoFile features can help you save 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 possible to integrate it with other platforms.
- Allows you to track multiple sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature.
- Only valid for USA customers
- Owners and accountants should check local legislation
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies that have multiple sales channels and uses plenty of platforms. If that sounds like what you do, then you must try TaxJar.
It’s not just a way to help you track your products and revenue, but it can also help you meet the deadlines you set. It’s also an excellent platform for an accountant since they provide tax Advisor program. You can find tips and get knowledge from their seminars about taxes through it.
Utilizing TaxJar can allow you to save more time while keeping on top of each deadline or requirement you need to fulfill. If you’re living in a place with complicated tax regulations, this will definitely help you get your mind around it. TaxJar Vs Simple Sales Tax
However, if managing taxes is easy If it isn’t, then TaxJar might not be a good investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you’re finding the entire procedure simple to follow, you might be better off doing it by yourself.
FAQ TaxJar Vs Simple Sales Tax
Which areas does TaxJar provide API assistance?
TaxJar currently works with countries like the United States, the EU, Australia, and Canada.
Can I integrate Shopify together with TaxJar?
Yes. You can connect your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every kind of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All of the transaction amounts are n US$. If you’re using a different currency, you’ll need to convert it into USdollars prior to when TaxJar will calculate the tax.