Taxes have always been one of the most difficult tasks to complete regardless of whether you’re running your own business or not. Particularly if you don’t have a background in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is filled with tasks to complete. When you’re not able to afford enough money to employ an accountant, performing the task on your own can be risky. If you make a mistake and you don’t know it, you may have to redo things again!
Nearly everyone would prefer to skipping this step. But since it’s required to be done, we can’t choose not to.
So what can we do about it?
We can always make our lives easier by using tools like TaxJar.
This article will take a look at this well-known life-saving tool and how it can help you. Although this is quite a long read it is possible to determine if TaxJar is the tool you require in the present.
Are you looking to watch videos instead? Take a look at this video by Marcus Stonelius on YouTube they also give a complete review of TaxJar’s features.
For those who like to read, then let’s dive right in.
What is TaxJar? V Tax Services
The company was founded in 2013 TaxJar is an application that automatizes your filings, reports, and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize it across all of the sales channels you use to ensure that you are in compliance with sales taxes. It simplifies the processes that take days to complete and finish within minutes.
TaxJar has been utilized in various industries like food and beverage businesses, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is widely used by business owners who run online businesses to ensure that everything is neat and simple. Let’s take a look at their features and services.
Features and services
One of the most important things you’ll need to make sure is that your accounting tax platform is compatible with your sales channel. If you have multiple sales channels, you need to ensure that everything is in order. The last thing you want is to be penalized for missing a single minor point.
TaxJar lets you display your critical data in one location. This means that there is no need to collect data from different channels and sort it into a single platform. All you need to do is to integrate TaxJar then the system will do the rest.
Apart from that, 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:
TaxJar lets customers make sales tax filings manually or through their AutoFile feature. In this review, we’ll look into both.
If you decide to manually file your tax returns, TaxJar will allow you to connect all those sales tools. Once the time comes for the filing of income tax returns, the team will instruct you on managing these. It is up for you and your team members to complete everything in time. TaxJar will only guide you on what you have to do but not handle it.
If you would prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out the forms in a manual manner. Through this feature, everything is automated, from calculating sales tax through recording, and then processing it. However, there might be extra fees if not part of the plan you choose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to help you with your accounting problems. All orders made through your e-commerce channels can be compiled into a single dashboard via this platform. Once you’re on the platform, you and your team can access everything you need, like the list of transactions, reports, as well as the data.
The best part about this feature is that it allows you to automatically update every day. They not only let to know the amount you’ve collected however, they can also help you keep track of when the next payments are due.
Their dashboard can also allow users to view in detail the sales tax totals within your company. You can also export the information to CSV format. CSV file in case you require it for your accounting and financial planning processes or if you require it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping on top of all your sales channels. That means you won’t have to search for your documents when you’re in the event of a need. Even if you already have your accountant, this feature can make them 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 exactly how much budget you have for other operating expenses.
But what’s even better is that TaxJar provides training and tutorials and tutorials, not just for their platform but all things that has to do with sales tax. You can check out their guides, webinars, and blog for more info. Apart from that, their sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We understand 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 look into TaxJar’s pricing levels and what each of those plans can offer. Presently, TaxJar offers three plans including Professional, Starter and Premium.
Their Starter plan starts at $19. They claim that it’s the most effective plan if you need help in filing and reporting. It also includes sales tax reporting, 4 autofiles for free each year, and the option of a CSV import. With the starter plan, you will be able to access their AI tax tips.
If you’re a smaller business owner, this plan will be perfect for you. It may not have all the features of TaxJar, but it has the basic features you require.
You can also contact their customer support via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for something that is more than the basic features, then the Professional plan might be the right one for you. It starts at $99, however, it could go up when you add additional features.
How different is it from the original plan?
Apart from having access to each of Starter plan’s features, you also have their support via phone Access to APIs, phone support, and sophisticated CSV import. You can also have 12 free AutoFiles each year.
If you own a huge enterprise, you may want to opt for the Premium plan instead. It comes with all the features needed to aid in your tax preparation. Additionally, they permit unlimited import integrations of data API integrations, team members and AutoFiles.
They also have a team who are devoted for managing the account. However, they don’t disclose how much the Premium plan is going to cost. V Tax Services
However, they did say that this plan is tailor-fit for each user. So the costs will vary in line with what you require to run your business.
Fortunately, you don’t need to bet your life on it to find out if the platform is for you. If you’re still looking into other options, they have the opportunity to try a free trial for 30 days. This should give you enough time to gauge whether the service is the right choice for you.
Pros and Cons
Now that we’ve covered all you should know about TaxJar let’s take a breather. To sum it all up, here are the advantages and disadvantages of the use of TaxJar for your business.
- Has the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Provides an online sales tax calculator
- Support service team
- The dashboard is easy 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 on AutoFile are determined by the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only valid for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything clearly laid down, TaxJar can be a great platform businesses with multiple sales channels and uses many platforms. If that’s what you do, then you ought to try this.
It’s not just a way to help you track your products and revenue, but it can assist you in meeting the deadlines you set. It is also a great option for accountants as they provide the Tax Advisor program. You can get tips and get knowledge from their seminars regarding taxes via it.
Utilizing TaxJar can allow you to save more time while keeping on top of each deadline or requirement you need to meet. If you live in a place with complicated tax regulations, this will surely help you wrap your head around the subject. V Tax Services
But if handling your taxes is straightforward If it isn’t, then TaxJar could be a waste of expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to track everything. If you find the whole process easy to do then you’re better to do it by yourself.
FAQ V Tax Services
What areas does TaxJar provide API assistance?
TaxJar currently works with countries like those of the United States, the EU, Australia, and Canada.
Can I integrate Shopify into TaxJar?
Yes. You can link your Shopify account with TaxJar to make it easier to monitor and updates.
Do I have the ability to convert every type of currency with TaxJar?
Unfortunately, no. TaxJar does not convert currencies. All transactions’ amounts are in USdollars. If you’re using another currency, you’ll need to convert it to USdollars before TaxJar will calculate the tax.