Taxes have always been among the most difficult tasks to complete regardless of whether you’re running a business 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. When you’re not able to afford enough money to employ an accountant, doing it on yourself can be risky. If you make a mistake and you don’t know it, you may have to do it all over again!
Almost everyone wants to avoid this step. But since it’s required and mandatory, there’s no other choice.
So what can we do ?
We can always make life easier by using tools like TaxJar.
Here we’ll take a look at this popular life-saving tool and how it can help you. While this is lengthy, you should be able to determine if TaxJar is what you need today.
Do you prefer watching videos rather than watch them? Check out this video – by Marcus Stonelius on YouTube they also give a complete analysis of TaxJar’s features.
For those who like to read, let’s get right into it.
What is TaxJar Why Tax The Rich
In 2013, TaxJar was established. TaxJar is a platform that helps automate your filings, reports, and sales tax calculation. It is a solution for your entire sales tax life cycle. Furthermore, you can utilize it across all of your sales channels to ensure that you are in compliance with sales taxes. It streamlines processes that take days to complete and finish within just a few minutes.
TaxJar has been used in various industries like food and beverage companies, SaaS, retail, services, and even medical institutions.
How can it help you?
TaxJar is extensively used by business owners who run online businesses to ensure that everything is organized and straightforward. Let’s look into their features and services.
Services and features
One of the most important things you’ll need to ensure you have a tax accounting platform seamlessly works well with your sales channel. If you’re using multiple sales channels, you must keep everything in place. 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 need to gather data in multiple channels and then organize it on one platform. All you have to do is integrate TaxJar, then the system will handle all the rest.
In addition, TaxJar also integrates with other platforms that can help in the process of making payments. Here’s a list of platforms they are able to integrate with:
TaxJar allows clients to file their sales taxes manually or through their AutoFile feature. For the purpose of this article, we’ll look at both.
If you opt to go it alone, TaxJar will allow you to connect all of your sales platforms. Once the time comes for filing tax returns for income, the team will instruct you on how to handle them. But, it is up for you and your team to complete everything on time. TaxJar is there to guide you 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 any forms manually. Through this feature, everything will be automated from calculating sales tax to recording and processing them. There could be additional costs if the feature is not part of the plan you select.
Sales Tax Reports
As mentioned earlier that you can utilize TaxJar to assist you with your accounting problems. Your orders from your e-commerce channels can be compiled into a single dashboard through this platform. Once you’re on the platform you and your team can access everything you need, such as an inventory of your transactions, reports, as well as the data.
The most appealing aspect of this option is the fact that they allow you to update automatically every day. Not only can they help to know the amount you’ve collected and how much you’ve earned, but they also let you keep track of when the next payments are due.
Their dashboard can also allow you to see the sales tax totals in your business. Additionally, you can export the information in CSV format. CSV file in case you require it to aid in accounting and financial planning processes or if you require it to run centralized reports.
Streamlining and Training
TaxJar helps organize and keep the track of all the sales avenues you use. This means that you don’t have to scramble for your documents when you need them when you’re in a pinch. Even even if you already have an accounting firm, the feature will aid them in being more efficient.
Furthermore, knowing the estimated amount for the sales tax you pay in advance will allow you to allocate your funds better. You’ll know exactly how much 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 related to sales tax. You can look through their webinars, guides as well as their blog to find more information. In addition the sales tax calculator is beneficial when you’re planning to do everything on your own.
How much does TaxJar cost?
We are aware of how important it is to set your budget. Certain platforms have amazing features, but they can be too costly for the business you run. For this reason we’ll take a look at TaxJar’s pricing levels and what each of these plans can offer. Currently, TaxJar offers three plans: Starter, Professional, and Premium.
Their Starter plan starts at $19. They claim that it’s the most effective plan to help you with filing requirements or reporting. It comes with sales tax reporting, 4 annual AutoFiles for free, as well as a CSV import. With the starter plan, you can access their AI tax recommendations.
If you’re a smaller company manager, the plan could be perfect for you. It may not offer all the features of TaxJar however, it does include all the basics you require.
In addition, you can reach their customer support via their support chart for email. You’ll also have access to their integration capabilities.
If you’re looking to get different from the basic features Professional could be the one for you. The price starts at $99 however, it could go up when you add additional features.
What is the difference from the starter plan?
In addition to having access to all of the Starter plan’s features, you also have their support via phone access to APIs, as well as sophisticated CSV import. They also allow you to receive 12 free AutoFiles every year.
If you run a large enterprise, you may want to go for premium plans instead. It has all of the features needed to make your tax filing easier. In addition, they offer unlimited import integrations of data API integrationsfor team members and AutoFiles.
There is also a team that is devoted in managing your accounts. But, they don’t divulge how much the Premium plan will cost you. Why Tax The Rich
However, they did mention that the plan is custom-made for every user. Therefore, the cost will differ in line with what you require for your company.
It’s a good thing that you don’t have to gamble your money just to find out if the platform is right for you. If you’re still considering various options, they provide 30 days of free trial. It should give you enough time to see if the platform is an excellent fit for you.
Pros and Cons
Now that we’ve covered all you need to know about TaxJar let’s take a break. To sum it all up we’ll go over the advantages and disadvantages of making use of TaxJar to run your business.
- Has the Tax Advisor option for some plans
- AutoFile features can help you save time
- Available in most USA states
- Provides an online sales tax calculator
- Has support service team
- The dashboard is simple to navigate
- It offers a free trial of 30 days.
- It is possible to integrate it with other platforms
- You can track several sales channels
- Limits on AutoFile are determined by the plan
- AutoFile has extra fees
- Certain countries will not have access to the API feature
- Only applicable for USA customers
- It is important for owners and accountants to recheck local legislations
The Final Verdict
With everything laid out TaxJar can be a great platform businesses with multiple sales channels and uses many platforms. If this sounds like the way you’re doing, then you should try this.
Not only will it help you track your revenue and products however, it will assist you in meeting your deadlines. This is also an excellent platform for an accountant since they have a Tax Advisor program. You can find tips and learn from their sessions on taxes by using it.
The use of TaxJar can help you get more done while keeping track of every deadline and requirement you have to fulfill. If you’re living in a place with complicated tax regulations, this will definitely help you get your head around it. Why Tax The Rich
But if handling taxes is easy and straightforward, then TaxJar may be an unnecessary investment. If you’re only dealing with one or two channels for sales, TaxJar won’t be needed to track everything. In addition, if you find the entire process easy to do then you’re better off doing it by yourself.
FAQ Why Tax The Rich
What are the areas in which TaxJar offer API support?
TaxJar currently works with countries like Australia, the United States, the EU, Australia, and Canada.
Do I have the ability to incorporate Shopify with TaxJar?
Yes. You can link your Shopify account with TaxJar to facilitate monitoring and updates.
Can I convert any type of currency with TaxJar?
Unfortunately, no. TaxJar cannot convert currency values. All transactions’ amounts are in US$. If you’re using a different currency, you’ll have to convert it to US$ prior to when TaxJar determines the tax.