Taxes have always been one of the most difficult things to handle regardless of 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 your whole day is filled with tasks to complete. In the event that you do not have the budget to employ an accountant, performing the task on yourself can be risky. If you make a mistake and you don’t know it, you may need to repeat the process!
Almost everyone wants to skipping this step. But since it’s required and mandatory, there’s no other choice.
What is the best way to deal with it?
We can always simplify our lives by using tools like TaxJar.
This article will take a look at this popular life-saving device and how it can benefit you. Even though this is an extensive read but you’ll be able to determine if TaxJar is exactly what you need right now.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
For those who like to read, then let’s get right into it.
What is TaxJar? TaxJar Woocommerce Setup
The company was founded in 2013 TaxJar is an application that automatizes your reports, filings, and sales tax calculation. 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 ensure that you are in compliance with sales tax requirements. It streamlines processes that require days to complete and is completed in just a few only a few minutes.
TaxJar has been used in a variety of industries, including food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is used extensively by owners of online businesses to ensure that everything is simple and organized. Let’s explore the benefits and features of TaxJar.
Features and services
One of the most important things you’ll want to check is that your accounting tax platform seamlessly works well in conjunction with the sales channels you use. If you have multiple sales channels, you need to ensure that everything is in order. The final thing you would like is to get a penalty for not paying attention to a minor thing.
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 sort it into one platform. All you need to do is to integrate TaxJar, it will do the rest.
Apart from that, TaxJar also integrates with other platforms that help with payments. Here’s a list of the platforms they can integrate with:
TaxJar lets customers submit their sales tax by hand or using their AutoFile feature. For our review we’ll look 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 manage these. But, it is up to you and your staff to complete everything within the timeframe. TaxJar will only help you understand what you have to do , but not to 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 the forms in a manual manner. This feature will ensure that everything will be automated from calculating sales tax to recording and processing them. However, there might be extra fees if not included in the plan you choose.
Sales Tax Reports
As I mentioned earlier, you can use TaxJar to ease your accounting woes. Your orders from your e-commerce channels can be combined into one dashboard using this platform. Once you’re on the platform you and your staff will have access to everything you need, like the list of transactions, reports, as well as information.
The most appealing aspect of the feature you’ve chosen is they allow you to automatically update every day. They not only let to know the amount you’ve earned, but they also help you keep track of when the next payments are due.
Their dashboard also allows users to view in detail the overall sales taxes in your business. You can also export the information to a CSV file if you need it for your process of financial planning and accounting or if your team requires it for centralized reporting.
Streamlining and Training
TaxJar helps organize and keep on top of all the channels you sell through. This means that you don’t have to hunt for your paperwork whenever you’re in the event of a need. Even if you already have your accountant, this feature will aid them in being more efficient.
Moreover, knowing the estimates for your sales tax ahead of time will allow you to allocate your funds more effectively. You’ll know better how much budget you have available for other operational costs.
But what’s even better is that TaxJar offers tutorials and training and tutorials, not just for their platform but everything that has to do with sales tax. You can look through their webinars, guides and blog for more information. Additionally their sales tax calculator should be useful if you’re planning to do everything on your own.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Certain platforms have amazing capabilities, but they’re often too costly for your business. That’s why for this section we’ll examine TaxJar’s pricing structures and what each of these choices can provide you. Currently, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan starts at $19. They say it’s the most effective plan for those who need assistance in filing and reporting. It also includes sales tax reporting, four autofiles for free each year, and the option of a CSV import. Even with the starter plan, you can access their AI tax recommendations.
If you’re a smaller business owner, this plan should be ideal for you. It might not include all of TaxJar’s features but it comes with all the basics you require.
Additionally, you can contact their support team with their support chart for email. You’ll also be able to use their integration tools.
If you’re looking for something different from the standard features and options, then the Professional plan may be the best option for you. It starts at $99, however, it could go up if you add custom features.
So how different is it from the starter plan?
Apart from having access to each of Starter plan’s features, you also get access to the support of their customer service via phone Access to APIs, phone support, and advanced CSV import. They also allow you to have 12 free AutoFiles each year.
If you run a large business, you might need to opt for the Premium plan instead. It comes with all the features you need to make your tax filing easier. Additionally, they permit unlimited integrations with data imports, API integrations, team users and AutoFiles.
They also have a staff that is devoted in managing your accounts. But, they don’t divulge the amount that the Premium plan is going to cost. TaxJar Woocommerce Setup
However, they did mention that this plan is customized to each user. So the costs will vary according to what you require for your company.
It’s a good thing that you don’t have to gamble your money just to find out if the platform is the right one for you. If you’re still looking into other options, they have 30 days of free trial. This should be enough time to determine if the platform is a good fit for you.
Pros and Pros and
Now that we’ve covered all you need to know about TaxJar let’s take a break. To sum it all up Here are the advantages and disadvantages of making use of TaxJar for your company.
- Has a Tax Advisor option for some plans
- AutoFile features help 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
- It offers a free trial of 30 days.
- It is able to be integrated with other platforms
- It allows you to monitor 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 applicable for USA customers.
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid out, TaxJar can be a great platform businesses with many sales channels and utilizes many platforms. If that’s what you do, then you must try TaxJar.
Not only can it assist you in keeping track of your revenue and products It can assist you in meeting the deadlines you set. It is also a great opportunity for accountants since they have the Tax Advisor program. You can get tips and gain knowledge from their workshops on taxes by using it.
The use of TaxJar can allow you to save more time 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 will certainly help you to get your head around it. TaxJar Woocommerce Setup
But if handling taxes is easy and straightforward, then TaxJar could be a waste of expense. If you have only 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 process easy to do then you’re better in doing it all by yourself.
FAQ TaxJar Woocommerce Setup
Which areas does TaxJar provide API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I connect Shopify into TaxJar?
Yes. You can link your Shopify account to TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every kind of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions are in US$. If you’re using another currency, you will need to convert it to USUSD before TaxJar will calculate the tax.