Taxes have always been among the most difficult things to handle regardless of whether you’re running a business or not. Particularly if you don’t have a degree in accounting or finance. Tax-related issues can be overwhelming, especially when your whole day is packed with things to do. When you’re not able to afford the budget to hire an accountant, making it yourself can be risky. If you make a mistake, you might have to do it all over again!
Almost everyone wants to avoid this step. But since it’s required, we have no choice.
What can we do about it?
We can simplify our lives by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and how it can help you. While this is an extensive read it is possible to determine if TaxJar is the tool you require today.
Are you looking watching videos rather than watch them? Take a look at this video by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
If you prefer to read, we’ll dive right into.
What is TaxJar? TaxJar Xero
The company was founded in 2013 TaxJar is a platform that helps automate your filings, reports, and sales tax calculation. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it across all of the sales channels you use to make sure you’re in compliance with sales taxes. It simplifies the processes that require days to complete and finish within minutes.
TaxJar is used in a variety of industries, including food and beverage companies, SaaS, retail, services as well as medical institutions.
How can this help you?
TaxJar is extensively used by online business owners to make their business more organized and straightforward. Let’s explore their features and services.
Features and services
One of the first things you’ll need to make sure is your tax-reporting system is compatible along with sales funnels. If you’re selling through multiple channels, you need to ensure that everything is in order. The final thing you would like is to be penalized for overlooking just one minor detail.
TaxJar allows you to display your key data in one location. That way, there’s no requirement to collect data in multiple channels and then organize it on one platform. All you need to do is integrate TaxJar, it will take care of the rest.
In addition, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to file their sales taxes by hand or using their AutoFile feature. For the purpose of this article, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect your sales platforms. When it comes time to the filing of income tax returns, the team will instruct you on managing these. However, it will be up to you and your team members to complete everything in time. TaxJar will only help you understand what you need to do but not handle it.
If you’d prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit any forms manually. This feature will ensure that everything will be automated, from calculating taxes on sales in order to record and process it. But, it is possible to incur additional charges if they are you do not include this feature in the plan you chose.
Sales Tax Reports
As mentioned earlier, you can use TaxJar to help you with your accounting problems. The orders you place through your online channels can be combined into one dashboard using this platform. Once you’re on the platform, you and your team will have access to everything you need, such as a list of your transactions, reports, and the data.
The most appealing aspect of the feature you’ve chosen is they allow you to update your account automatically each day. They not only let to know the amount you’ve collected however, they can also help you track when your following payment is due.
Their dashboard also allows users to view in detail the total sales tax in your business. You can also export the data in a CSV file in case you require it in your accounting and financial planning processes or if your team requires it to run centralized reports.
Streamlining and Training
TaxJar assists in organizing and keeping the track of all your sales channels. It means you don’t need to search for your documents when you’re in a pinch. Even if you already have your accounting firm, the feature can help them be more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will allow you to allocate your funds better. You’ll know exactly how much budget you have for other operating expenses.
What’s more is that TaxJar offers training and tutorials, not just for their platform , but also all things related to sales tax. Check out their guides, webinars, as well as their blog to find more details. Apart from that their sales tax calculator can be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they can be too costly for the business you run. That’s why for this section we’ll examine TaxJar’s pricing levels and the features that each of these plans can offer. Currently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan is priced at $19. The company claims that it’s the most effective plan if you need help with filing requirements or reporting. It includes the tax on sales, four free yearly AutoFiles, and a CSV import. Even with the starter plan, you can access their AI tax advice.
If you’re a smaller company owner, this plan could be perfect for you. It may not have all the features offered by TaxJar, but it has the essentials that you need.
In addition, you can reach the support team via their support chart for email. You’ll also have access to their integration capabilities.
If you’re looking to get different from the standard features Professional may be the best option for you. The price starts at $99 however, it could go up when you add additional features.
What is the difference from the starter plan?
In addition to accessing each of Starter plan’s features, you also get access to their support via phone Access to APIs, phone support, and advanced CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you have a massive company, you may need to choose the Premium plan instead. It comes with all the features needed to make your tax filing easier. In addition, they offer unlimited import integrations of data as well as API integrationsfor team users and AutoFiles.
There is also a team dedicated in managing your accounts. But, they don’t divulge the price of the Premium plan. will cost you. TaxJar Xero
However, they did say that this plan is customized for every user. The cost of the plan will be different in line with what you require for your company.
Fortunately, you don’t need to bet your life on it to see if this platform is for you. If you’re still considering various options, they provide 30 days of free trial. This should be enough time to determine if the platform is a good fit for you.
Pros and Cons
We’ve covered everything you should know about TaxJar Let’s relax. To sum it all up, here are the advantages and disadvantages of using TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It can 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 applicable for USA customers
- It is important for owners and accountants to review local laws
The Final Verdict
With everything laid out, TaxJar can be a great platform companies that have multiple sales channels and uses numerous platforms. If that sounds like what you do, then you 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. This is also an excellent platform for an accountant since they provide the Tax Advisor program. There are tips to follow and learn from their sessions on taxes by using it.
Using TaxJar can allow you to reduce time and keep track of every deadline and obligation you have to meet. If you live in a region with a lot of tax regulations, this will surely help you wrap your head around the subject. TaxJar Xero
However, if managing your taxes is simple, then TaxJar may be an unnecessary investment. If you have only one or two channels of sales, TaxJar won’t be needed to track everything. Moreover, if you’re finding the entire procedure simple to follow and you’re comfortable with it, you may be better to do it by yourself.
FAQ TaxJar Xero
What are the areas in which TaxJar provide API assistance?
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 connect your Shopify account with TaxJar to facilitate monitoring and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All of the transaction amounts are n US$. If you’re using a different currency, you’ll have to convert it to USdollars prior to when TaxJar determines the tax.