As an online retailer, staying on top of sales tax compliance is critical for avoiding costly penalties and maintaining a positive reputation with customers. Fortunately, there are software solutions available that can help simplify the process. TaxJar and Vertex are two such platforms that offer sales tax automation and compliance solutions for businesses of all sizes. While both platforms share similar goals, they have different approaches to addressing the challenges of sales tax compliance.
In this article, we will compare TaxJar vs Vertex and explore their features, pricing, and overall performance. By understanding the differences between these two platforms, 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 to streamline your operations and avoid potential risks.
What is TaxJar? TaxJar Vs Vertex
Founded in 2013, TaxJar is an online platform that assists you in automating your reporting, filings and sales tax calculation. It’s a solution for the entire 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 simplifies the processes that take days to complete and finish within only a few minutes.
TaxJar has been used in different industries such as food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by online business owners to ensure that everything is neat and simple. Let’s explore the benefits and features of TaxJar.
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Services and features
Integration
One of the first things you’ll need to make sure you have a tax accounting system seamlessly works well in conjunction with the sales channels you use. If you’re selling through multiple channels, it is essential to keep everything in place. The final thing you would like is to get a penalty for missing a single minor point.
TaxJar lets you display your most important metrics in one spot. This means that there is no requirement to collect information from multiple sources and sort it into one platform. All you need to do is connect TaxJar, then the system will do the rest.
In addition, TaxJar also integrates with other platforms that help in the process of making payments. Here’s a list of the platforms they are able to integrate with:
Filing
TaxJar allows customers to make sales tax filings either manually or via TaxJar’s AutoFile feature. For this review, we’ll dig into both.
If you opt to do it manually, TaxJar will allow you to connect those sales tools. When it comes time to filing income tax returns The team will guide you on how to handle the tax returns. It is up to you and your team members to finish the tax returns in time. TaxJar is only there to provide guidance on what you need to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling – that means you don’t have to fill out any forms manually. This feature will ensure that everything will be automated, from calculating taxes on sales through recording, and then processing them. But, it is possible to incur extra fees if not part of the plan you select.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting woes. The orders you place through your online channels can be combined into a single dashboard via this platform. Once you’re on the platform you and your team will have access to all the information you need, such as an inventory of your transactions, reports, as well as data.
The best part about this option is the fact that it lets you to automatically update every day. They not only let you know how much you’ve collected, but they also help you determine when your next payment is due.
The dashboard allows you to see the sales tax totals for your business. It is also possible to export your data as the form of a CSV file in case you require it to aid in process of financial planning and accounting or if you require it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping track of all of the channels you sell through. That means you won’t have to scramble for your documents when you’re in a pinch. Even even if you already have an accountant, this feature will aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your funds more effectively. You’ll be aware of the budget you have to cover other operating costs.
But what’s even better is that TaxJar offers training and tutorials, not just on their platform, but everything that has to do with sales tax. You can look through their guides, webinars, or blog posts for additional info. Apart from that, their sales tax calculator is beneficial when you’re planning to complete everything yourself.
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How much does TaxJar cost?
We understand how important it is to establish your budget. Some platforms offer superb capabilities, but they’re often too costly for the business you run. For this reason we’ll examine TaxJar’s pricing structures and the features that each of these choices can provide you. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Starter
Their Starter plan starts at $19. They say it’s the best plan to help you with filing requirements or reporting. It comes with the tax on sales, four free yearly AutoFiles, and a CSV import. Even with the starter plan, you can access their AI tax tips.
If you’re a smaller company proprietor, then this program will be ideal for you. It may not offer all the features of TaxJar but it comes with all the basics you require.
In addition, you can reach the support team via their support chart for email. You’ll also be able to use their integration tools.
Professional
If you’re looking to get different from the standard features and options, then the Professional plan could be the one for you. It starts at $99, but it can go higher when you add additional features.
How different is it from the starter plan?
Apart from having access to each of Starter plan’s features, you also have their phone customer support, API access, and sophisticated CSV import. You can also get 12 AutoFiles for free each year.
Premium
If you run a large company, you may need to go for premium plans instead. It comes with all the features needed to aid in your tax preparation. In addition, they offer unlimited integrations with data imports, API integrations, team users as well as AutoFiles.
They also have a team who are devoted for managing the account. They don’t reveal how much the Premium plan will cost you. TaxJar Vs Vertex
However, they did say that the plan is custom-made to each user. The cost of the plan will be different depending on what you need to run your business.
Free Trial
Fortunately, you don’t need to risk your money to determine if this service is right for you. If you’re still considering various options, they provide 30 days of free trial. It should give you enough time to gauge if the platform is an excellent fit for you.
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Pros and Cons
We’ve covered everything you should know about TaxJar let’s take a breather. To summarize, here are the pros and cons of making use of TaxJar for your business.
Pros
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Offers Taxes on sales online calculator.
- Support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms
- You can track several sales channels
Cons
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only applicable for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies with many sales channels and utilizes plenty of platforms. If that sounds like what you do, then you ought to 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. This is also an excellent option for accountants as they offer a Tax Advisor program. You can get tips and learn from their sessions on taxes by using it.
Utilizing TaxJar will help you get more done while keeping on top of each deadline or requirement you need to meet. If you’re living in a place with complicated tax laws, this will surely help you wrap your mind around it. TaxJar Vs Vertex
If handling taxes is easy If it isn’t, then TaxJar may be an unnecessary investment. If you only have one or two sales channels, TaxJar won’t be needed to keep track of all of it. If you’re finding the entire procedure easy to complete and you’re comfortable with it, you may be better off doing it on your own.
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FAQ TaxJar Vs Vertex
Which areas does TaxJar provide API support?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify together with TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. The transactions’ amounts are in USdollars. If you’re using a different currency, you will need to convert it into USdollars prior to when TaxJar will calculate your tax.
