Taxes have always been one of the most difficult tasks to complete regardless of whether you’re running an enterprise or not. Particularly if you don’t have a background in accounting or finance. Tax-related issues can be overwhelming, especially when you’re packed with things to do. In the event that you do not have enough money to employ an accountant, making it your own can be risky. If you make a mistake, you might need to repeat the process!
Almost everyone wants to avoid this step. But since it’s required, we have no choice.
What can we do ?
We can make our lives easier with tools such as TaxJar.
We’ll look at this well-known life-saving tool and how it can assist you. Even though this is a long read it is possible to gauge whether TaxJar is exactly what you need in the present.
Prefer video streaming instead? Watch this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
For those who like to read, then let’s get right into it.
What is TaxJar? Why Is TaxJar Not Adding Tax
The company was founded in 2013 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. In addition, you can apply it in all of the sales channels you use to make sure you’re in compliance with your sales taxes. It streamlines processes that require days to complete and finish within just a few minutes.
TaxJar is used in various industries like food and beverage businesses, SaaS, retail, services, and even medical institutions.
How can this help you?
TaxJar is extensively used by online business owners to make their business more organized and straightforward. Let’s explore their features and services.
Services and features
One of the first things you’ll need to make sure you have a tax accounting platform perfectly integrates with your sales channel. If you’re using multiple sales channels, you need to maintain everything in line. The last thing you want is to face a penalty due to missing a single minor point.
TaxJar allows you to display your key metrics in one place. That way, there’s no requirement to collect data from different channels and organize it into a single platform. All you need to do is connect TaxJar, it will handle all the rest.
Apart from that, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list highlighting the platforms they can integrate with:
TaxJar allows clients to file their sales taxes by hand or using TaxJar’s AutoFile feature. In this review, we’ll take a look at both.
If you opt to do it manually, TaxJar will allow you to connect those sales tools. Once the time comes for the filing of income tax returns, the team will instruct you on how to handle these. However, it will be up for you and your team to complete everything in time. TaxJar is there to help you understand what you should do , but not to handle it.
If you prefer an Auto file, TaxJar will do the filling, which means you don’t have to submit all forms by hand. With this feature, everything will be automated from calculating taxes on sales to recording and processing it. However, there might be additional costs if the feature is not included in the plan you choose.
Sales Tax Reports
As I mentioned earlier it is possible to use TaxJar to help you with your accounting issues. The orders you place through your online channels can be combined into a single dashboard through this platform. From there, you and your team will have access to everything you require, including the list of transactions, reports, as well as the data.
The greatest benefit of this feature is that it lets you to automatically update every day. They not only let to know the amount you’ve accumulated however, they can also help you keep track of when the next payments are due.
The dashboard allows you to fully view the overall sales taxes for your business. Additionally, you can export your data as the form of a CSV file in case you require it in your financial planning and accounting processes or if your team needs it for central reporting.
Streamlining and Training
TaxJar helps you organize and keep on top of all the sales avenues you use. That means you won’t have to hunt for your paperwork when you’re in the event of a need. Even even if you already have an accountant, this function can help them be more efficient.
Moreover, knowing the estimates for the sales tax you pay in advance will help you plan your funds more effectively. You’ll know exactly how much budget you have for other operating expenses.
What’s more is that TaxJar provides training and tutorials not only for their platform , but also for anything related to sales tax. You can look through their webinars, guides or blog posts for additional details. Apart from that their sales tax calculator can be helpful if you’re planning on do everything on your own.
How much does TaxJar cost?
We know how crucial it is to set your budget. Some platforms offer superb features, but they can be too expensive for businesses. That’s why for this section, we’ll look into TaxJar’s pricing levels and what each of these choices can provide you. At present, TaxJar offers three plans: Starter, Professional, and Premium.
The Starter plan is priced at $19. The company claims that it’s the best plan to help you in filing and reporting. It comes with sales tax reporting, four autofiles for free each year, and the option of a CSV import. Even with the basic plan, you will be able to access their AI tax tips.
If you’re a small-scale business manager, the plan could be perfect for you. It may not offer all of TaxJar’s features however, it does include the essentials that you need.
Additionally, you can contact their customer support via their support chart for email. You’ll also have access to their integration tools.
If you’re looking for something a bit more than just the basics Professional could be the one for you. The price starts at $99 but it can go higher if you add custom features.
What is the difference from the basic plan?
In addition to accessing every one of Starter plan’s features, you also get access to their support via phone, API access, and advanced CSV import. They also allow you to receive 12 free AutoFiles every year.
If you own a huge business, you might need to choose premium plans instead. It comes with all the features needed to make your tax filing easier. Moreover, they allow unlimited data import integrations as well as Integrations with APIs, teams of members, and AutoFiles.
There is also a team who are devoted to managing your account. But, they don’t divulge the amount that the Premium plan will cost you. Why Is TaxJar Not Adding Tax
But they did state that the plan is custom-made for each 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 right for you. If you’re still looking into various options, they provide 30 days of free trial. This should give you enough time to see whether the service is an excellent fit for you.
Pros and Pros and
We’ve covered everything you need to be aware of TaxJar Let’s relax. To sum it all up, here are the advantages and disadvantages of making use of TaxJar for your company.
- There is the Tax Advisor option for some plans
- AutoFile features save time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- Offers a 30-day free trial
- It is possible to integrate it 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 be able to access the API feature
- Only valid for USA customers
- Owners and accountants should recheck local legislations
The Final Verdict
With everything laid down, TaxJar provides a fantastic platform to companies that have numerous sales channels, and that utilizes plenty of platforms. If that sounds like what you’re doing, then you should try this.
Not only can it aid in tracking your revenue and products, but it can help you meet your deadlines. This is also an excellent platform for an accountant since they have the Tax Advisor program. You can get tips and gain knowledge from their workshops regarding taxes via it.
Using TaxJar will help you get more done while keeping the track of each deadline and obligation you have to fulfill. If you’re in a place with complicated tax laws, this can surely help you wrap your mind around it. Why Is TaxJar Not Adding Tax
But if handling your taxes is straightforward, then TaxJar might not be a good expense. If you’re only dealing with one or two channels of sales, TaxJar won’t be needed to keep track of everything. In addition, if you’re finding the entire process easy to do then you’re better off doing it by yourself.
FAQ Why Is TaxJar Not Adding Tax
What areas does TaxJar offer API support?
TaxJar currently supports countries like those of the United States, the EU, Australia, and Canada.
Can I incorporate Shopify with TaxJar?
Yes. You can connect your Shopify account with TaxJar for easier monitoring and updates.
Are there any ways to exchange one type of currency using TaxJar?
Unfortunately, no. TaxJar doesn’t convert currencies. All of the transactions are in USdollars. If you’re using another currency, you will need to convert it into US$ before TaxJar can calculate your tax.