Taxes have always been one of the hardest things to do regardless of whether you’re running an enterprise or not. Even more so if you do not have any experience in accounting or finance. Tax-related tasks aren’t easy, particularly when you’re packed with things to do. If you don’t have the funds to employ an accountant, making it yourself can be risky. If you overlook one thing it could mean you have to redo things again!
Most people want to skip this step. However, since it’s mandatory, we have no 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 well-known life-saving tool and how it can benefit you. While this is lengthy it is possible to determine if TaxJar is exactly what you need today.
Prefer video streaming instead? Take a look at this video by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
For those who like to read, we’ll dive right into.
What is TaxJar? What Is TaxJar How Can It Help Me
Founded in 2013, TaxJar is a platform that helps automate your filings, reports, and sales tax calculations. It is a solution for all aspects of your sales tax cycle. In addition, you can apply it in all of your channels of sales to ensure compliance with sales taxes. It makes the process simpler that could require days to complete and is completed in just a few just a few minutes.
TaxJar has been used 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 used extensively by online business owners to ensure that everything is simple and organized. Let’s explore 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 using multiple sales channels, you need to keep everything in place. The most important thing is not to get a penalty for overlooking just one minor detail.
TaxJar allows you to show your most important metrics in one place. That way, there’s no need to gather information from multiple sources and sort it into a single platform. All you need to do is connect TaxJar, then the system will handle all the rest.
In addition, TaxJar also integrates with other platforms that can help with payment processing. Here’s a list highlighting the platforms that they can connect with:
TaxJar allows customers to file their sales taxes by hand or using the AutoFile feature. For this review, we’ll take a look at both.
If you choose to manually file your tax returns, TaxJar will allow you to connect all those sales tools. When the time is right for filing income tax returns TaxJar will train you on how to manage the tax returns. It is up for you and your staff to complete the process in time. TaxJar is only there to provide guidance on what you should do but not handle it.
If you prefer an Auto file, TaxJar will do the filling for you. This means that you don’t have to fill out the forms in a manual manner. This feature will ensure that everything is automated, from calculating sales taxes to recording and processing them. But, it is possible to incur extra fees if not part of the plan you chose.
Sales Tax Reports
As we mentioned it is possible to use TaxJar to ease your accounting issues. The orders you place through your online channels can be compiled into one dashboard using this platform. Once you’re on the platform you and your team will have access to all the information you require, including the list of transactions, reports and information.
The greatest benefit of the feature you’ve chosen is they allow you to automatically update every day. Not only can they help to know the amount you’ve collected, but they also help you determine when your next payment is due.
Their dashboard also allows users to view in detail the overall sales taxes for your business. You can also export the data as CSV format. CSV file if you need it to aid in process of financial planning and accounting or if you require it to run centralized reports.
Streamlining and Training
TaxJar helps you organize and keep track of all of your sales channels. This means that you don’t have to search for your documents when you’re in a pinch. Even if you already have your accountant, this function will make them more efficient.
Furthermore, knowing the estimated amount for your sales tax ahead of time will allow you to allocate your funds better. You’ll be aware of the budget you have available for other operating expenses.
What’s more is that TaxJar offers training and tutorials and tutorials, not just for their platform , but also for anything connected to sales tax. You can look through their webinars, guides, or blog posts for additional information. Apart from that their sales tax calculator is beneficial when you’re planning to take on the entire task yourself.
How much does TaxJar cost?
We know how crucial it is to establish your budget. Some platforms provide amazing capabilities, but they’re often too expensive for businesses. That’s why for this section, we’ll look into TaxJar’s pricing structures and what each of these choices can provide you. Currently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. The company claims that it’s the best plan for those who need assistance in filing and reporting. It comes with sales tax reporting, four annual AutoFiles for free, as well as an CSV import. Even with the basic plan, you can access their AI tax advice.
If you’re a smaller business proprietor, then this program should be ideal for you. It may not offer all of TaxJar’s features however, it does include all the basics you require.
Additionally, you can contact their support team with their email support chart. You’ll also be able to use their integration tools.
If you’re looking for something a bit more than just the standard features, then the Professional plan could be the one for you. The price starts at $99 but it can go higher when you add additional features.
What is the difference from the original plan?
In addition to having access to every one of Starter plan’s features, you also get access to their phone customer support Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to have 12 free AutoFiles each year.
If you run a large business, you might need to go for premium plans instead. It comes with all the features needed to make your tax filing easier. In addition, they offer unlimited import integrations of data, Integrations with APIs, teams of users as well as AutoFiles.
They also have a staff who are devoted for managing the account. But, they don’t divulge how much the Premium plan is going to cost. What Is TaxJar How Can It Help Me
But they did state that this plan is customized for each user. So the costs will vary depending on what you need to run your business.
Fortunately, you don’t need to gamble your money just to find out if the platform is right for you. If you’re still looking into other options, they have 30 days of free trial. This should be enough time to see whether the service is an excellent fit for you.
Pros and Cons
We’ve covered everything you should know about TaxJar let’s take a breather. To summarize we’ll go over the pros and cons of using TaxJar for your business.
- There is the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Offers on the internet for sales tax calculator
- Support service team
- The dashboard is simple to navigate
- The company offers a 30-day trial for free.
- It is able to be integrated with other platforms.
- You can track several sales channels
- AutoFile limit is based on the plan
- AutoFile has extra fees
- Some countries won’t be able to access the API feature
- Only valid for USA customers
- Owners and accountants should review local laws
The Final Verdict
With everything laid out TaxJar can be a great platform companies with many sales channels and utilizes numerous platforms. If that’s what you do, then you should try this.
Not only can it aid in tracking your products and revenue, but it can assist you in meeting your deadlines. It’s also an excellent opportunity for accountants since they have the Tax Advisor program. There are tips to follow and gain knowledge from their workshops about taxes through it.
Using TaxJar can help you reduce time and keep track of every deadline and obligation you have to fulfill. If you’re living in a region with a lot of tax laws, this can surely help you wrap your head around the subject. What Is TaxJar How Can It Help Me
But if handling taxes is easy, then TaxJar might not be a good expense. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. 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 What Is TaxJar How Can It Help Me
Which areas does TaxJar offer API support?
TaxJar is currently assisting countries such as Australia, the United States, the EU, Australia, and Canada.
Can I incorporate Shopify into TaxJar?
Yes. You can sync your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency with TaxJar?
Unfortunately, no. TaxJar doesn’t convert currency values. All transactions’ amounts are in US$. If you’re using another currency, you’ll need to convert it into USUSD before TaxJar will calculate the tax.