Taxes have always been among the hardest things to do regardless of whether you’re running your own business or not. Even more so if you do not have a background in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is packed with things to do. When you’re not able to afford the funds to employ an accountant, doing it on yourself can be risky. If you make a mistake and you don’t know it, you may have to redo things again!
Most people want to skipping this step. However, since it’s mandatory, we have no choice.
So , what is the best way to deal with it?
We can always make our lives easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving device and how it can help you. While this is an extensive read it is possible to assess whether TaxJar is exactly what you need today.
Prefer to watch videos instead? Watch this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of the features offered by TaxJar.
For those who like to read, then let’s dive right in.
What is TaxJar? What Are Deductions/Exemptions TaxJar
Founded in 2013, TaxJar is an online platform that assists you in automating your reports, filings, and sales tax calculations. It is a solution for your entire sales tax life cycle. In addition, you can apply it across all your sales channels to ensure that you are in compliance with sales tax requirements. It simplifies the processes that take days to complete and finish within 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 widely used by online business owners to ensure that everything is simple and organized. Let’s explore the features and services offered by TaxJar.
Features and services
One of the first things you’ll need to ensure is your tax-reporting platform seamlessly works well along with sales funnels. If you have multiple sales channels, you must keep everything in place. The most important thing is not to face a penalty due to missing a single minor point.
TaxJar allows you to display your key data in one location. That way, there’s no requirement to collect data from different channels and then organize it on a single platform. All you have to do is integrate TaxJar it will do all the rest.
Other than that, TaxJar also integrates with other platforms to assist with payment processing. Here’s a list of platforms they are able to integrate with:
TaxJar lets customers file their sales taxes manually or through the AutoFile feature. For the purpose of this article, we’ll look at both.
If you choose to go it alone, TaxJar will allow you to connect the sales channels you use. Once the time comes for the filing of income tax returns, the team will instruct you on how to manage these. It is up to you and your staff to complete the process within the timeframe. TaxJar is there to help you understand what you need to accomplish, but not manage it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to submit all forms by hand. With this feature, everything will be automated, from calculating sales taxes through recording, and then processing it. But, it is possible to incur additional costs if the feature is 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 issues. Your orders from your e-commerce channels can be compiled into one dashboard using this platform. From there you and your team can access everything you need, such as a list of your transactions, reports, as well as information.
The greatest benefit of this option is the fact that it allows you to automatically update every day. Not only will they let to know the amount you’ve earned and how much you’ve earned, but they also let you track when your following payments are due.
The dashboard allows you to see the overall sales taxes within your company. It is also possible to export your data in the form of a CSV file, if you want to use it to aid in process of financial planning and accounting or if you require it to run centralized reports.
Training and Streamlining
TaxJar helps organize and keep the track of all the sales avenues you use. It means you don’t need to scramble for your documents whenever you’re when you’re in a pinch. Even even if you already have an accountant, this function can aid them in being more efficient.
Furthermore, knowing the estimated amount for your sales tax in advance will allow you to allocate your funds more effectively. You’ll know exactly how much budget you have for other operational costs.
But what’s even better is that TaxJar provides training and tutorials, not just on their platform, but all things that has to do with sales tax. You can check out their webinars, guides or blog posts for additional information. Apart from that the sales tax calculator can be useful if you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to determine your budget. Some platforms offer superb capabilities, but they’re often too costly for your business. For this reason we’ll take a look at TaxJar’s pricing tiers and what each of these options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
Their Starter plan starts at $19. The company claims that it’s the most effective plan if you need help in filing and reporting. It includes sales tax reporting, four free yearly AutoFiles, and the option of a CSV import. With the starter plan, you can access their AI tax tips.
If you’re a small business owner, this plan will be perfect for you. It might not include all the features of TaxJar however, it does include the essentials that you need.
Additionally, you can contact their support team with their support chart for email. You’ll also be able to use their integration features.
If you’re looking to get a bit more than just the basics, then the Professional plan could be the one for you. The price starts at $99 however, it could go up if you add custom features.
How different is it from the basic plan?
In addition to accessing every one of Starter plan’s features, you also have their phone customer support access to APIs, as well as advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you run a large company, you may need to go for premium plans instead. It has all of 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 staff that is devoted in managing your accounts. They don’t reveal the amount that the Premium plan is going to cost. What Are Deductions/Exemptions TaxJar
However, they did mention that the plan is custom-made for every user. Therefore, the cost will differ in line with what you require for your company.
Luckily, you don’t have to gamble your money just to determine if this service is for you. If you’re still considering various options, they provide the opportunity to try a free trial for 30 days. This should be enough time to determine whether the service is the right choice for you.
Pros and Pros and
Now that we’ve covered all you must know about TaxJar Let’s relax. In order to sum up the whole thing, here are the pros and cons of the use of TaxJar for your company.
- There is a 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 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
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Certain countries will not be able to access the API feature.
- Only valid for USA customers
- It is important for owners and accountants to check local legislation
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies that have many sales channels and utilizes plenty of platforms. If this sounds like the way you’re doing, then you ought to try this.
It’s not just a way to assist you in keeping track of your products and revenue however, it will also help you meet the deadlines you set. It is also a great opportunity for accountants since they have tax Advisor program. There are tips to follow and learn from their sessions about taxes through it.
Using TaxJar can help you reduce time and keep on top of each deadline and obligation you have to fulfill. If you live in a region with a lot of tax laws, this will certainly help you to get your head around it. What Are Deductions/Exemptions TaxJar
But if handling your taxes is simple and straightforward, then TaxJar might not be a good expense. If you have only one or two channels for sales, TaxJar won’t be needed to keep track of everything. In addition, if you find the entire process easy to do then you’re better in doing it all on your own.
FAQ What Are Deductions/Exemptions TaxJar
What areas does TaxJar offer API assistance?
TaxJar is currently assisting countries such as those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account to TaxJar to facilitate monitoring and updates.
Are there any ways to exchange one kind of currency using TaxJar?
Unfortunately, no. TaxJar does not convert currency values. The transactions’ amounts are in US$. If you’re using a different currency, you will need to convert it into USdollars prior to when TaxJar will calculate the tax.