Sales tax compliance can be a complex and time-consuming task for online retailers. Fortunately, there are software platforms available that claim to simplify the process. Two such platforms are TaxJar and Taxcloud, both of which offer sales tax compliance solutions for businesses of all sizes. While both platforms share similar goals, there are some key differences between them.
In this article, we will compare TaxJar vs Taxcloud and examine their features, pricing, and overall performance. By understanding the strengths and weaknesses of each platform, you can make an informed decision about which one is the best fit for your business needs. Whether you’re a small business owner or a larger retailer, this comparison can help you choose the right sales tax compliance platform for your business.
What is TaxJar? TaxJar Vs Taxcloud
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. TaxJar is a solution to your entire sales tax life cycle. Furthermore, you can utilize it in all of your sales channels 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 is used in different industries such as food and beverage companies, SaaS, retail, services and even medical establishments.
How can it help you?
TaxJar is used extensively by business owners who run online businesses to ensure that everything is simple and organized. Let’s take a look at the benefits and features of TaxJar.
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Services and features
Integration
One of the most important things you’ll want to check you have a tax accounting platform is compatible along with sales funnels. If you have multiple sales channels, you must maintain everything in line. The last thing you want is to face a penalty due to not paying attention to a minor thing.
TaxJar allows you to display your key metrics in one spot. So, there’s no need to collect data in multiple channels and sort it into a single platform. All you need to do is connect TaxJar and the platform will take care of all 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 can integrate with:
Filing
TaxJar allows clients to file their sales taxes by hand or using their AutoFile feature. In our review we’ll look at both.
If you opt to manually file your tax returns, TaxJar will allow you to connect those sales tools. Once the time comes for the filing of income tax returns, the team will instruct you on how to handle the tax returns. But, it is up to you and your staff to complete everything on time. TaxJar will only guide you on what you should do but not handle it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out all forms by hand. With this feature, everything will be automated from calculating sales tax through recording, and then processing it. But, it is possible to incur additional charges if they are not included in the plan you select.
Sales Tax Reports
As we mentioned that you can utilize TaxJar to help you with your accounting woes. All orders made through your e-commerce channels can be put together into a single dashboard via this platform. Once you’re on the platform, you and your team can access everything you require, including the list of transactions, reports, and information.
The best part about this option is the fact that they allow you to automatically update every day. They not only let you know how much you’ve earned and how much you’ve earned, but they also let you keep track of when the next payment is due.
Their dashboard can also allow you to fully view the sales tax totals in your business. It is also possible to export your data as CSV format. CSV file if you need it in your accounting and financial planning processes or if your team needs it for centralized reporting.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all the sales avenues you use. It means you don’t need to hunt for your paperwork whenever you’re in a pinch. Even if you already have your accountant, this function will aid them in being more efficient.
Moreover, knowing the estimates for your sales tax in advance can help you allocate your funds more effectively. You’ll know exactly how much budget you have to cover other operating expenses.
The best part is that TaxJar offers training and tutorials and tutorials, not just for their platform but everything connected to sales tax. Check out their webinars, guides or blog posts for additional information. Additionally the sales tax calculator should be useful if you’re planning to take on the entire task yourself.
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How much does TaxJar cost?
We understand how important it is to determine your budget. Some platforms provide amazing capabilities, but they’re often too costly for the business you run. For this reason we’ll take a look at TaxJar’s pricing structures and the features that each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Starter
The Starter plan costs $19. They say it’s the most effective plan if you need help with filing requirements and reporting. It comes with sales tax reporting, 4 autofiles for free each year, and an CSV import. Even with the basic plan, you can access their AI tax advice.
If you’re a small-scale company owner, this plan should be ideal for you. It may not offer all the features of TaxJar however, it does include the essentials that you need.
Additionally, you can contact the support team via their email support chart. Additionally, you’ll have access to their integration capabilities.
Professional
If you’re looking for that is more than the basic features and options, then the Professional plan might be the right one for you. The price starts at $99 however, it could go up when you add additional features.
So how different is it from the original 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 advanced CSV import. You can also have 12 free AutoFiles each year.
Premium
If you run a large enterprise, you may want to opt for premium plans instead. It comes with all the features that you require to make your tax filing easier. Moreover, they allow unlimited import integrations of data, Integrations with APIs, teams of members, and AutoFiles.
There is also a team that is devoted to managing your account. They don’t reveal the amount that the Premium plan costs you. TaxJar Vs Taxcloud
However, they did say that this plan is tailor-fit for each user. Therefore, the cost will differ according to what you require for your business.
Free Trial
Luckily, you don’t have to gamble your money just to find out if the platform is right 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 software is an excellent fit for you.
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Pros and Cons
After we’ve gone over everything you should know about TaxJar Let’s relax. In order to sum up the whole thing we’ll go over the advantages and disadvantages of making use of TaxJar for your company.
Pros
- There is a Tax Advisor option for some plans
- AutoFile features can help you to reduce time
- Available in most USA states
- Offers an online sales tax calculator
- Support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It can be integrated with other platforms.
- Allows you to track multiple sales channels
Cons
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable to USA customers
- Owners and accountants should review local laws
The Final Verdict
With everything laid out, TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes numerous platforms. If that’s what you do, then you should try this.
Not only will it help you track your revenue and products, but it can help you meet your deadlines. This is also an excellent opportunity for accountants since they provide a Tax Advisor program. You can get tips and learn from their sessions about taxes through 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 living in a place with complicated tax laws, this can certainly help you to get your head around it. TaxJar Vs Taxcloud
But if handling taxes is easy, then TaxJar may be an unnecessary expense. If you only have one or two sales channels, TaxJar won’t be needed to keep track of everything. If you’re finding the entire process easy to do and you’re comfortable with it, you may be better to do it on your own.
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FAQ TaxJar Vs Taxcloud
What are the areas in which TaxJar offer API assistance?
TaxJar currently supports countries like Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar for easier monitoring and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. The transaction amounts are n USdollars. If you’re using another currency, you will need to convert it to USdollars prior to when TaxJar can calculate your tax.
