Taxes are always one of the hardest things to do regardless of whether you run your own business or not. More so if you don’t have any experience in accounting or finance. Tax-related tasks can be overwhelming, particularly when your whole day is full of things to be done. When you’re not able to afford the budget to hire an accountant, doing it on yourself can be risky. If you make a mistake it could mean you need to repeat the process!
Almost everyone wants to skip this step. But , as it’s a requirement and mandatory, there’s no other choice.
So what can we do about it?
We can always make our lives easier with tools such as TaxJar.
This article will take a look at this life-saving device and how it can benefit you. Although this is quite an extensive read it is possible to determine if TaxJar is the tool you require right now.
Prefer watching videos rather than watch them? Watch this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
But for those who prefer to read, let’s dive right in.
What is TaxJar? When Should I Start Using TaxJar?
In 2013, TaxJar was established. TaxJar is an application that automatizes your filings, reports, and sales tax calculation. It’s a solution for all aspects of your sales tax cycle. Additionally, you can use it in all of the sales channels you use to ensure that you are in compliance with sales taxes. It streamlines processes that require days to complete and is completed in just a few just a few minutes.
TaxJar has been used in a variety of industries, including food and beverage companies, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is used extensively by business owners who run online businesses to ensure that everything is neat and simple. Let’s look into their features and services.
Features and services
One of the most important things you’ll need to ensure is your tax-reporting system seamlessly works well along with sales funnels. If you have multiple sales channels, you must ensure that everything is in order. The final thing you would like is to face a penalty due to overlooking just one minor detail.
TaxJar lets you display your most important metrics in one spot. That way, there’s no requirement to collect data in multiple channels and sort it into a single platform. All you have to do is to integrate TaxJar and the platform will take care of all the rest.
Other than 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 allows customers to file their sales taxes by hand or using TaxJar’s AutoFile feature. In this review, we’ll take a look into both.
If you opt to manually file your tax returns, TaxJar will allow you to connect all your sales platforms. When it comes time to filing income tax returns TaxJar will train you on how to handle the tax returns. It is up for you and your team members to complete everything on time. TaxJar is only there to provide guidance on what you have 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 fill out all forms by hand. This feature will ensure that everything is automated, from calculating sales taxes to recording and processing it. There could be extra fees if not included in the plan you select.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to ease your accounting issues. 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, such as the list of transactions, reports, as well as information.
The best part about the feature you’ve chosen is it allows you to automatically update every day. Not only will they let to know the amount you’ve accumulated, but they also help you track when your following payments are due.
The dashboard allows users to view in detail the sales tax totals in your business. It is also possible to export the information as CSV format. CSV file, if you want to use it to aid in accounting and financial planning processes or if your team requires it for centralized reporting.
Training and Streamlining
TaxJar assists in organizing and keeping the track of all the channels you sell through. It means you don’t need to hunt for your paperwork when you’re in a pinch. Even if you already have your accountant, this feature will make them more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance can help you allocate your funds better. You’ll be aware of the budget you have for other operating expenses.
What’s more is that TaxJar offers tutorials and training, not just for their platform , but also all things that has to do with sales tax. You can check out their webinars, guides as well as their blog to find more information. In addition the sales tax calculator should be beneficial when you’re planning to complete everything yourself.
How much does TaxJar cost?
We are aware of how important it is to determine your budget. Certain platforms have amazing features, but they’re sometimes too expensive for businesses. 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: Starter, Professional, and Premium.
The Starter plan costs $19. They claim that it’s the most suitable plan for you to help you with filing requirements and reporting. It also includes the tax on sales, four annual AutoFiles for free, as well as an CSV import. Even with the starter plan, you can access their AI tax tips.
If you’re a small-scale business proprietor, then this program should be ideal for you. It might not include all the features offered by TaxJar, but it has all the basics you require.
In addition, you can reach the support team via their support chart for email. Additionally, you’ll have access to their integration capabilities.
If you’re looking for something that is more than the basic features Professional could be the one for you. It’s priced at $99 but you can increase it when you add additional features.
What is the difference from the original plan?
In addition to accessing all of the Starter plan’s features, you also get access to their support via phone access to APIs, as well as sophisticated CSV import. They also allow you to have 12 free AutoFiles each year.
If you run a large business, you might need to opt for premium plans instead. It includes all of the features that you require to make your tax filing easier. Moreover, they allow unlimited integrations with data imports, Integrations with APIs, teams of users as well as AutoFiles.
They also have a staff who are devoted to managing your account. But, they don’t divulge the amount that the Premium plan is going to cost. When Should I Start Using TaxJar?
However, they did say that this plan is customized for each user. Therefore, the cost will differ according to what you require to run your business.
It’s a good thing that you don’t have to bet your life on it to see if this platform is right for you. If you’re still looking into various options, they provide a 30-day free trial. It should give you enough time to determine if the platform is a good fit for you.
Pros and Cons
After we’ve gone over everything you must be aware of TaxJar let’s take a break. To summarize, here are the pros and cons of the use of TaxJar for your business.
- Does the plan include a Tax Advisor option for some plans
- AutoFile features help to reduce time
- Available in most USA states
- Provides an online sales tax calculator
- Support service team
- The dashboard is simple 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 applicable to USA customers
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything clearly laid down, TaxJar is an excellent platform for businesses with many sales channels and utilizes many platforms. If this sounds like the way you do, then you should try this.
Not only can it aid in tracking the sales and profits of your business, but it can help you meet the deadlines you set. This is also an excellent platform for an accountant since they offer tax Advisor program. There are tips to follow and get knowledge from their seminars on taxes by using it.
Utilizing TaxJar will help you get more done while keeping track of every deadline and obligation you have to fulfill. If you’re in a place with complicated tax regulations, this will surely help you wrap your head around the subject. When Should I Start Using TaxJar?
But if handling your taxes is simple, then TaxJar may be an unnecessary investment. If you have only one or two sales channels, TaxJar won’t be needed to track everything. Moreover, if you find the entire procedure simple to follow, you might be better in doing it all by yourself.
FAQ When Should I Start Using TaxJar?
What are the areas in which TaxJar offer API support?
TaxJar currently supports countries like the United States, the EU, Australia, and Canada.
Do I have the ability to connect Shopify together 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 using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All transaction amounts are n USdollars. If you’re using another currency, you’ll have to convert it to USdollars prior to when TaxJar can calculate your tax.