Taxes are always one of the hardest things to do, whether you’re running a business or not. Particularly if you don’t have any experience in finance or accounting. Tax-related tasks aren’t easy, particularly when you’re full of things to be done. If you don’t have the budget to engage an accountant performing the task on yourself can be dangerous. If you make a mistake it could mean you need to repeat the process!
Most people want to avoid this step. But since it’s required 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 well-known life-saving tool and explain how it can benefit you. Although this is quite an extensive read but you’ll be able to determine if TaxJar is what you need today.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Vs Taxamo
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reporting, filings and sales tax calculation. It is a solution for your entire sales tax life cycle. Additionally, you can use it across all your sales channels to ensure compliance with sales tax requirements. It simplifies the processes that require days to complete and is completed in just a few only a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage companies, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is organized and straightforward. Let’s take a look at the features and services offered by TaxJar.
Services and features
One of the most important things you’ll want to check is that your accounting tax software seamlessly works well along with sales funnels. If you’re selling through multiple channels, you need to maintain everything in line. The final thing you would like is to be penalized for missing a single minor point.
TaxJar allows you to display your most important data in one location. This means that there is no requirement to collect information from multiple sources and then organize it on one platform. All you have to do is integrate TaxJar, it will handle all 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 that they can connect with:
TaxJar allows clients to file their sales taxes by hand or using their AutoFile feature. For the purpose of this article, we’ll look into 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 The team will guide you on how to manage the tax returns. It is up to you and your team to complete the process within the timeframe. TaxJar is there to provide guidance on what you should do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that 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 chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to ease your accounting issues. Your orders from your e-commerce channels can be compiled into one dashboard using this platform. From there you and your staff can access everything you need, like the list of transactions, reports, and information.
The greatest benefit of this feature is that they allow you to update your account automatically each day. Not only can they help to know the amount you’ve earned however, they can also help you determine when your next payment is due.
Their dashboard can also allow you to see the total sales tax for your business. You can also export the data to a CSV file if you need it for your financial planning and accounting processes or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep track of all of the channels you sell through. This means that you don’t have to scramble for your documents when you’re in a pinch. Even if you already have your accountant, this function can aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance can help you allocate your funds more effectively. You’ll know better how much budget you have to cover other operational costs.
What’s more is that TaxJar offers tutorials and training not only for their platform but all things related to sales tax. Check out their webinars, guides, as well as their blog to find more info. In addition, their 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 establish your budget. Some platforms provide amazing features, but they’re sometimes too costly for the business you run. This is why in this section we’ll take a look at TaxJar’s pricing tiers and what each of those plans can offer. Presently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan costs $19. The company claims that it’s the most effective plan to help you with filing requirements and reporting. It comes with sales tax reporting, 4 annual AutoFiles for free, as well as the option of a CSV import. Even with the basic plan, you can access their AI tax recommendations.
If you’re a small-scale business owner, this plan should be ideal for you. It might not include all the features of TaxJar but it comes with all the basics you require.
In addition, you can reach their support team with their email support chart. Additionally, you’ll have access to their integration tools.
If you’re looking to get a bit more than just the basics Professional may be the best option for you. It’s priced at $99 but it can go higher if you add custom features.
How different is it from the basic plan?
Apart from having access to each of Starter plan’s features, you also have the support of their customer service via phone Access to APIs, phone support, and advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you run a large company, you may need to choose an upgrade instead. It has all of the features needed to help with your taxes. Additionally, they permit unlimited import integrations of data as well as Integrations with APIs, teams of members and AutoFiles.
They also have a staff that is devoted to managing your account. They don’t reveal the amount that the Premium plan will cost you. TaxJar Vs Taxamo
However, they did mention that this plan is tailor-fit for each user. The cost of the plan will be different depending on what you need to run your business.
It’s a good thing that you don’t have to bet your life on it to determine if this service is right for you. If you’re still looking into various options, they provide a 30-day free trial. This should be enough time to see if the platform is a good fit for you.
Pros and Cons
We’ve covered everything you must be aware of TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of making use of TaxJar to run your business.
- There is a Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Provides on the internet for sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is possible to integrate it with other platforms.
- It allows you to monitor 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
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies with many sales channels and utilizes plenty of platforms. If this sounds like the way you do, then you should try this.
Not only can it aid in tracking the sales and profits of your business however, it will assist you in meeting the deadlines you set. It’s also an excellent option for accountants as they offer the Tax Advisor program. You can find tips and gain knowledge from their workshops about taxes through it.
Using TaxJar will help you reduce time and keep on top of each deadline and requirement you have to meet. If you’re in a place with complicated tax laws, this will surely help you wrap your mind around it. TaxJar Vs Taxamo
But if handling your taxes is simple, then TaxJar may be an unnecessary investment. If you only have one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the entire procedure easy to complete then you’re better to do it by yourself.
FAQ TaxJar Vs Taxamo
What are the areas in which TaxJar offer API assistance?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to integrate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. The transaction amounts are n USdollars. If you’re using a different currency, you will need to convert it into USUSD prior to when TaxJar will calculate your tax.