Taxes have always been among the hardest things to do regardless of whether you run an enterprise or not. More so if you don’t have any experience in finance or accounting. Tax-related work can be overwhelming, especially when your whole day is packed with things to do. When you’re not able to afford enough money to engage an accountant doing it on yourself can be dangerous. If you overlook one thing and you don’t know it, you may have to do it all over again!
Almost everyone wants to skipping this step. But since it’s required, we have no choice.
So what can we do about it?
We can make life easier by using tools like TaxJar.
Here we’ll take a look at this well-known life-saving tool and explain how it can benefit you. Although this is quite a long read it is possible to determine if TaxJar is exactly what you need in the present.
Are you looking watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also do a full analysis of TaxJar’s features.
For those who like to read, let’s dive right in.
What is TaxJar Why Are The Taxes Lower On TaxJar
In 2013, TaxJar was established. TaxJar is an online platform that assists you in automating your filings, reports, and sales tax calculation. It’s a solution for the entire life cycle. Additionally, you can use it across all of your channels of sales to make sure you’re in compliance with sales taxes. It streamlines processes that take days to complete and is completed in just a few only a few minutes.
TaxJar has been utilized in a variety of industries, including food and beverage companies, SaaS, retail, services as well as medical institutions.
What can it do to help you?
TaxJar is used extensively by business owners who run online businesses to keep everything neat and simple. Let’s take a look at their features and services.
Services and features
One of the most important things you’ll want to check is that your accounting tax system is compatible in conjunction with the sales channels you use. If you have multiple sales channels, you must ensure that everything is in order. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to show your most important metrics in one spot. That way, there’s no requirement to collect information from multiple sources and sort it into a single platform. All you need to do is connect TaxJar then the system will do the rest.
Other than that, TaxJar also integrates with other platforms that can help with payments. Here’s a list of the platforms that they can connect with:
TaxJar allows customers to submit their sales tax either manually or via TaxJar’s AutoFile feature. For the purpose of this article, we’ll take a look into both.
If you opt to do it manually, TaxJar will allow you to connect all the sales channels you use. When the time is right for filing income tax returns, the team will instruct you on how to manage the tax returns. But, it is up for you and your team members to complete the process on time. TaxJar is only there to 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 won’t need to fill out all forms by hand. Through this feature, everything will be automated, from calculating sales tax through recording, and then processing them. There could be extra fees if not part of the plan you choose.
Sales Tax Reports
As we mentioned, you can use TaxJar to help you with your accounting woes. Your orders from your e-commerce channels can be combined into one dashboard using this platform. From there you and your staff will have access to all the information you require, including an inventory of your transactions, reports and data.
The most appealing aspect of this feature is that it allows you to update your account automatically each day. Not only will they let you keep track of how much you’ve earned, but they also help you determine when your next payments are due.
Their dashboard can also allow you to see the overall sales taxes in your business. It is also possible to export your data to a CSV file in case you require it for your accounting and financial planning processes or if your team requires it for central reporting.
Training and Streamlining
TaxJar helps organize and keep on top of all the channels you sell through. That means you won’t have to scramble for your documents whenever you’re when you’re in a pinch. Even if you already have your accountant, this function can help them be more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will help you plan your money more efficiently. You’ll be aware of the budget you have for other operational costs.
What’s more is that TaxJar offers training and tutorials not only for their platform , but also everything that has to do with sales tax. You can check out their webinars, guides, and blog for more information. In addition, their sales tax calculator can be beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We understand how important it is to determine your budget. Certain platforms have amazing capabilities, but they’re often too costly for the business you run. For this reason, we’ll look into TaxJar’s pricing tiers and what each of these plans can offer. Presently, TaxJar offers three plans including Professional, Starter and Premium.
The Starter plan is priced at $19. They claim that it’s the best plan if you need help with filing requirements and reporting. It includes sales tax reporting, four free yearly AutoFiles, and the option of a CSV import. Even with the starter plan, you can access their AI tax recommendations.
If you’re a small business proprietor, then this program should be perfect for you. It may not have all of TaxJar’s features, but it has all the basics you require.
In addition, you can reach the support team via their support chart for email. You’ll also be able to use their integration capabilities.
If you’re looking for something different from the basics Professional might be the right one for you. It’s priced at $99 but you can increase it when you add additional features.
So 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 Access to APIs, phone support, and sophisticated CSV import. Additionally, they allow you to receive 12 free AutoFiles every year.
If you run a large enterprise, you may want to choose an upgrade instead. It has all of the features you need to aid in your tax preparation. Moreover, they allow unlimited import integrations of data API integrations, team members, and AutoFiles.
They also have a staff dedicated in managing your accounts. They don’t reveal the amount that the Premium plan is going to cost. Why Are The Taxes Lower On TaxJar
But they did state that this plan is customized for every user. So the costs will vary in line with what you require for your business.
Luckily, you don’t have to gamble your money just to determine if this service is for you. If you’re still looking into different options, they offer 30 days of free trial. This should give you enough time to see whether the service is a good fit for you.
Pros and Cons
We’ve covered everything you should be aware of TaxJar let’s take a break. In order to sum up the whole thing we’ll go over the pros and cons of making use of TaxJar to run your business.
- There is the Tax Advisor option for some plans
- AutoFile features help save time
- Available in most USA states
- Offers an online sales tax calculator
- Support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It can be integrated with other platforms.
- It allows you to monitor multiple sales channels
- Limits for AutoFile are based on the plan
- AutoFile has extra fees
- Some countries won’t have access to the API feature
- Only applicable for USA customers
- Needs accountants and owners to review local laws
The Final Verdict
With everything laid down, TaxJar can be a great platform companies that have multiple sales channels and uses numerous platforms. If that’s what you’re doing, then you must try TaxJar.
Not only will it assist you in keeping track of the sales and profits of your business, but it can help you meet the deadlines you set. It is also a great opportunity for accountants since they provide the Tax Advisor program. You can get tips and gain knowledge from their workshops regarding taxes via it.
Utilizing TaxJar will help you save more time while keeping the track of each deadline or requirement you need to fulfill. If you’re living in a region with a lot of tax laws, this will definitely help you get your head around the subject. Why Are The Taxes Lower On TaxJar
However, if managing your taxes is simple If it isn’t, then TaxJar could be a waste of investment. If you’re only dealing with one or two sales channels, TaxJar won’t be needed to keep track of all of it. If you’re finding the entire procedure easy to complete, you might be better to do it by yourself.
FAQ Why Are The Taxes Lower On TaxJar
What are the areas in which TaxJar offer API assistance?
TaxJar currently works with countries like 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.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar cannot convert currencies. All transactions’ amounts are in US$. If you’re using a different currency, you will need to convert it into US$ before TaxJar can calculate the tax.