Taxes have always been one of the most difficult tasks to complete, whether you’re running your own business or not. Even more so if you do not have any experience in finance or accounting. Tax-related issues can be overwhelming, particularly when you’re packed with things to do. If you don’t have enough money to hire an accountant, making it your own could be dangerous. If you make a mistake it could mean you need to repeat the process!
Most people want to avoid this step. But , as it’s a requirement and mandatory, there’s no other choice.
So , what can we do ?
We can always simplify our lives by using tools like TaxJar.
This article will take a look at this life-saving tool and explain how it can help you. Even though this is a long read but you’ll be able to gauge whether TaxJar is exactly what you need right now.
Prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also provide a comprehensive review of TaxJar’s features.
For those who like to read, then let’s dive right in.
What is TaxJar? What Does TaxJar Do
In 2013, TaxJar was established. TaxJar is a platform that helps automate your reporting, filings and sales tax calculations. TaxJar is a solution to the entire life cycle. Furthermore, you can utilize it in all of your channels of sales to ensure that you are in compliance with sales taxes. It streamlines processes that can take days to complete, and finish within only a few minutes.
TaxJar is used in various industries like food and beverage companies, SaaS, retail, services and even medical establishments.
What can it do to help you?
TaxJar is widely used by business owners who run online businesses to keep everything organized and straightforward. Let’s take a look at their features and services.
Services and features
One of the most important things you’ll need to make sure is that your accounting tax software is compatible along with sales funnels. If you’re selling through multiple channels, you must ensure that everything is in order. The final thing you would like is to be penalized for not paying attention to a minor thing.
TaxJar allows you to show your most important metrics in one spot. That way, there’s no need 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.
Apart from that, TaxJar also integrates with other platforms to assist in the process of making payments. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to make sales tax filings either manually or via their AutoFile feature. For this review, we’ll dig into both.
If you opt to go it alone, TaxJar will allow you to connect all of the sales channels you use. When it comes time to the filing of income tax returns The team will guide you on managing these. However, it will be up to you and your staff to complete the process in time. TaxJar will only guide you on what you should do but not handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to fill out the forms in a manual manner. With this feature, everything will be automated from calculating taxes on sales in order to record and process them. There could be additional charges if they are not part of the plan you chose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting issues. The orders you place through your online channels can be combined into a single dashboard through this platform. Once you’re on the platform you and your team will have access to all the information you need, such as the list of transactions, reports, as well as information.
The greatest benefit of the feature you’ve chosen is it lets you to update your account automatically each day. Not only can they help you know how much you’ve collected and how much you’ve earned, but they also let you track when your following payments are due.
Their dashboard can also allow you to fully view the overall sales taxes within your company. Additionally, you can export the information as CSV format. CSV file in case you require it to aid in process of financial planning and accounting or if you require it for centralized reporting.
Streamlining and Training
TaxJar helps you organize and keep track of all of the sales avenues you use. That means you won’t have to scramble for your documents when you need them in the event of a need. Even if you already have your accounting firm, the feature will aid them in being more efficient.
Additionally, knowing the figures 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 operating expenses.
The best part is that TaxJar provides training and tutorials, not just for their platform , but also everything connected to sales tax. You can check out their guides, webinars, or blog posts for additional details. In addition, their sales tax calculator should be beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial 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 tiers and what each of those options can offer you. At present, TaxJar offers three plans that are: Professional, Starter and Premium.
The Starter plan is priced at $19. They say it’s the most effective plan if you need help with filing requirements and reporting. It also includes the tax on sales, 4 autofiles for free each year, and a CSV import. With the starter plan, you have access to their AI tax recommendations.
If you’re a smaller business proprietor, then this program will be perfect for you. It may not offer all the features offered by TaxJar however, it does include all the basics you require.
In addition, you can reach their support team with their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking to get a bit more than just the basics Professional may be the best option for you. The price starts at $99 but you can increase it when you add additional features.
How different is it from the original plan?
In addition to accessing all of the Starter plan’s options, you also have access to their phone customer support, API access, and the ability to do advanced CSV import. Additionally, they allow you to get 12 AutoFiles for free each year.
If you have a massive company, you may need to opt for premium plans instead. It includes all of the features you need to help with your taxes. Additionally, they permit unlimited integrations with data imports API integrations, team users and AutoFiles.
They also have a staff dedicated to managing your account. But, they don’t divulge the amount that the Premium plan will cost you. What Does TaxJar Do
But they did state that this plan is tailor-fit for every user. Therefore, the cost will differ depending on what you need for your company.
Luckily, you don’t have to risk your money to determine if this service is the right one for you. If you’re still looking into various options, they provide 30 days of free trial. It should give you enough time to gauge if the platform is the right choice for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar let’s take a breather. To summarize we’ll go over the advantages and disadvantages of making use of TaxJar for your company.
- Has the Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Offers on the internet for sales tax calculator.
- Support Service Team
- The dashboard is easy to navigate
- Offers a 30-day free trial
- It can 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 be able to access the API feature
- Only valid for USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid out TaxJar is an excellent platform for companies that have numerous sales channels, and that utilizes numerous platforms. If that’s what you’re doing, then you ought to try this.
Not only will it assist you in keeping track of your revenue and products, but it can help you meet your deadlines. It’s also an excellent platform for an accountant since they provide a 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 get more done while keeping track of every deadline and obligation you have to meet. If you’re living in an area with complex tax regulations, this will surely help you wrap your head around it. What Does TaxJar Do
However, if managing taxes is easy and straightforward, then TaxJar could be a waste of investment. If you have only one or two channels for sales, TaxJar won’t be needed to track all of it. If you find the entire procedure simple to follow then you’re better off doing it by yourself.
FAQ What Does TaxJar Do
What are the areas in which TaxJar provide API assistance?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can link your Shopify account to TaxJar to make it easier to monitor and updates.
Can I convert any kind of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All transactions’ amounts are in USdollars. If you’re using a different currency, you’ll have to convert it into USdollars before TaxJar determines the tax.