Taxes have always been one of the hardest things to do, whether you’re running an enterprise or not. Even more so if you do not have any experience in accounting or finance. Tax-related issues can be overwhelming, particularly when you’re filled with tasks to complete. When you’re not able to afford the funds to engage an accountant making it yourself can be dangerous. If you make a mistake it could mean you 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 simplify our lives with tools such as TaxJar.
Here we’ll take a look at this popular life-saving tool and how it can benefit you. While this is an extensive read but you’ll be able to assess whether TaxJar is the tool you require in the present.
Prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also do a full review of TaxJar’s features.
If you prefer to read, then let’s dive right in.
What exactly is TaxJar? TaxJar Vs Taxconnex
The company was founded in 2013 TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculations. TaxJar is a solution to all aspects of your sales tax cycle. Furthermore, you can utilize it in all of the sales channels you use to make sure you’re in compliance with your sales taxes. It streamlines processes that can take days to complete, and can be completed in a matter of minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is organized and straightforward. Let’s look into their features and services.
Services and features
One of the most important things you’ll want to check you have a tax accounting system seamlessly works well along with sales funnels. If you have multiple sales channels, you must maintain everything in line. The final thing you would like is to be penalized for overlooking just one minor detail.
TaxJar allows you to display your critical metrics in one place. This means that there is no requirement to collect data from different channels and then organize it on one platform. All you have to do is connect TaxJar, it will handle all the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to make sales tax filings either manually or via the AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you decide to go it alone, TaxJar will allow you to connect all the sales channels you use. Once the time comes for filing tax returns for income, the team will instruct you on how to handle the tax returns. However, it will be up to you and your team to complete everything on time. TaxJar is there to provide guidance on what you have to do but not handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you won’t need to fill out all forms by hand. This feature will ensure that everything will be automated from calculating taxes on sales to recording and processing it. However, there might be additional costs if the feature is not included in the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to ease your accounting issues. All orders made through your e-commerce channels can be put together into a single dashboard through this platform. Once you’re on the platform you and your team will have access to everything you need, such as an inventory of your transactions, reports, and information.
The most appealing aspect of this feature is that they allow you to automatically update every day. Not only can they help you keep track of how much you’ve earned and how much you’ve earned, but they also let you track when your following payments are due.
The dashboard allows users to view in detail the sales tax totals within your company. Additionally, you can export your data as a CSV file, if you want to use it for your process of financial planning and accounting or if your team needs it for central reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all the channels you sell through. That means you won’t have to hunt for your paperwork when you need them when you’re in a pinch. Even when you already have your accountant, this feature can aid them in being more efficient.
Additionally, knowing the figures for the sales tax you pay in advance can help you allocate your funds more effectively. You’ll know exactly how much budget you have for other operational expenses.
But what’s even better is that TaxJar offers training and tutorials not only for their platform , but also all things that has to do with sales tax. Check out their webinars, guides, as well as their blog to find more details. In addition the sales tax calculator should be useful if you’re planning to complete everything yourself.
How much does TaxJar cost?
We understand how important it is to set your budget. Some platforms offer superb features, but they can be too costly for the business you run. For this reason, we’ll look into TaxJar’s pricing tiers and what each of these plans can offer. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. They claim 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 an CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a small-scale company manager, the plan should be ideal for you. It may not offer all the features offered by TaxJar however, it does include all the basics you require.
In addition, you can reach their customer support via their support chart for email. You’ll also be able to use their integration features.
If you’re looking for something that is more than the standard features, then the Professional plan might be the right one for you. It’s priced at $99 but you can increase it by adding custom features.
So how different is it from the original plan?
In addition to having access to each of Starter plan’s features, you also get access to their phone customer support Access to APIs, phone support, and the ability to do advanced CSV import. They also allow you to get 12 AutoFiles for free each year.
If you have a massive enterprise, you may want to opt for premium plans instead. It has all of the features needed to aid in your tax preparation. Moreover, they allow unlimited integrations with data imports as well as Integrations with APIs, teams of members and AutoFiles.
There is also a team that is devoted in managing your accounts. But, they don’t divulge the amount that the Premium plan will cost you. TaxJar Vs Taxconnex
But they did state that this plan is customized to each user. The cost of the plan will be different according to what you require to run your business.
Luckily, you don’t have to gamble your money just to determine if this service is right for you. If you’re still considering other options, they have 30 days of free trial. This should give you enough time to see whether the service is the right choice for you.
Pros and Cons
Now that we’ve covered all you should be aware of TaxJar Let’s relax. 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 save time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- 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 valid for USA customers.
- Owners and accountants should review local laws
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies that have many sales channels and utilizes plenty of platforms. If this sounds like the way you’re doing, then must try TaxJar.
Not only can it assist you in keeping track of your products and revenue It can assist you in meeting your deadlines. It’s 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.
Using TaxJar can help you save more time while keeping track of every deadline or requirement you need to meet. If you’re living in an area with complex tax laws, this can surely help you wrap your head around it. TaxJar Vs Taxconnex
But if handling your taxes is straightforward and straightforward, then TaxJar may be an unnecessary investment. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of all of it. If you find the whole procedure easy to complete then you’re better in doing it all by yourself.
FAQ TaxJar Vs Taxconnex
What are the areas in which TaxJar provide API support?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can link your Shopify account with TaxJar to facilitate monitoring and updates.
Can I convert any kind of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. The transactions’ amounts are in US$. If you’re using another currency, you’ll have to convert it to US$ before TaxJar can calculate your tax.