Taxes have always been one of the most difficult things to handle, whether you’re running an enterprise or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is full of things to be done. In the event that you do not have enough money to engage an accountant making it your own can be dangerous. If you overlook one thing it could mean you have to redo things again!
Most people want to skip this step. But , as it’s a requirement, we have no choice.
So , what is the best way to deal with it?
We can make life easier with tools such as TaxJar.
This article will take a look at this well-known life-saving tool and explain how it can help you. Even though this is a long read, you should be able to determine if TaxJar is the tool you require in the present.
Are you looking to watch videos instead? 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 we’ll dive right into.
What exactly is TaxJar? TaxJar Why Did I Collect Sales Tax
Founded in 2013, TaxJar is a platform that helps automate your reporting, filings and sales tax calculations. It is a solution for the entire life cycle. Additionally, you can use it in all of your sales channels to ensure compliance with sales tax requirements. It streamlines processes that take days to complete and is completed in just a few minutes.
TaxJar has been utilized in different industries such as food and beverage businesses, SaaS, retail, services as well as medical institutions.
How can it help you?
TaxJar is used extensively by business owners who run online businesses to keep everything neat and simple. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll want to check is your tax-reporting platform perfectly integrates in conjunction with the sales channels you use. If you have multiple sales channels, you must maintain everything in line. The most important thing is not to be penalized for missing a single minor point.
TaxJar lets you 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 a single platform. All you need to do is to integrate TaxJar, it will take care of the rest.
In addition, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms they are able to integrate with:
TaxJar allows customers to file their sales taxes either manually or via TaxJar’s AutoFile feature. In this review, we’ll take a look into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all of the sales channels you use. When the time is right for filing tax returns for income TaxJar will train you on how to handle them. However, it will be up to you and your team members to complete everything within the timeframe. TaxJar is there to provide guidance on what you have to do , but not to handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you won’t need to fill out any forms manually. Through this feature, everything will be automated from calculating sales taxes through recording, and then processing them. However, there might be additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As mentioned earlier it is possible to use TaxJar to ease your accounting issues. The orders you place through your online channels can be put together into a single dashboard via this platform. From there, you and your team will have access to all the information you need, like a list of your transactions, reports and the data.
The best part about this feature is that it lets you to automatically update every day. Not only can they help you keep track of how much you’ve accumulated, but they also help you track when your following payments are due.
Their dashboard also allows users to view in detail the overall sales taxes for your business. Additionally, you can export the information to CSV format. CSV file if you need it to aid in financial planning and accounting processes or if your team needs it to run centralized reports.
Training and Streamlining
TaxJar helps you organize and keep track of all of the sales avenues you use. It means you don’t need to search for your documents when you’re in the event of a need. Even even if you already have an accountant, this feature will aid them in being more efficient.
Moreover, knowing the estimates for your sales tax in advance will allow you to allocate your funds more effectively. You’ll be aware of the budget you have for other operating costs.
The best part is that TaxJar provides training and tutorials not only for their platform , but also everything related to sales tax. You can check out their webinars, guides or blog posts for additional information. In addition, their sales tax calculator can be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing features, but they can be too costly for your business. For this reason, we’ll look into TaxJar’s pricing tiers and the features that each of these plans can offer. At present, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan is priced at $19. They claim that it’s the most effective plan if you need help with filing requirements or reporting. It comes with taxes on sales and sales as well as 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 advice.
If you’re a smaller business proprietor, then this program should be perfect for you. It might not include all the features of TaxJar but it comes with all the basics you require.
Additionally, you can contact the support team via their support chart for email. Additionally, you’ll have access to their integration capabilities.
If you’re looking for different from the basic features and options, then the Professional plan could be the 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 starter plan?
Apart from having access to every one of Starter plan’s features, you also have their phone customer support Access to APIs, phone support, and sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you run a large enterprise, you may want to choose the Premium plan instead. It has all of the features that you require to aid in your tax preparation. In addition, they offer unlimited import integrations of data, API integrationsfor team users as well as AutoFiles.
There is also a team that is devoted in managing your accounts. But, they don’t divulge how much the Premium plan will cost you. TaxJar Why Did I Collect Sales Tax
But they did state that this plan is customized for every user. Therefore, the cost will differ in line with what you require for your business.
Fortunately, you don’t need to risk your money to see if this platform is for you. If you’re still looking into different options, they offer a 30-day free trial. This should be enough time to see whether the software is an excellent fit for you.
Pros and Pros and
After we’ve gone over everything you must know about TaxJar let’s take a breather. To sum it all up Here are the pros and cons of the use of TaxJar for your company.
- Does the plan include the 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.
- Support service team
- The dashboard is simple 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 on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature
- Only applicable to USA customers.
- Needs accountants and owners to recheck local legislations
The Final Verdict
With everything laid out, TaxJar can be a great platform businesses with multiple sales channels and uses plenty of platforms. If that’s what you’re doing, then you ought to try this.
It’s not just a way to help you track the sales and profits of your business, but it can also help you meet the deadlines you set. 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.
Using TaxJar will help you save more time while keeping the track of each deadline or requirement you need to meet. If you’re in a region with a lot of tax regulations, this will definitely help you get your head around it. TaxJar Why Did I Collect Sales Tax
But if handling your taxes is simple and straightforward, then TaxJar might not be a good investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. In addition, if you’re finding the entire procedure simple to follow then you’re better off doing it by yourself.
FAQ TaxJar Why Did I Collect Sales Tax
What are the areas in which TaxJar offer API assistance?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Can I integrate Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar to facilitate monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All of the transaction amounts are n US$. If you’re using a different currency, you’ll need to convert it into US$ prior to when TaxJar can calculate the tax.