What is TaxJar ?
TaxJar is a dependable sales tax software designed for busy online sellers to help them automate sales tax computing, tax recording, and reporting. The platform removes the dreary duties for tax compliance cycles and enables users to focus more on their business. TaxJar gives a straightforward one-click connection on spots where you sell, be it on Amazon, Shopify, Magento, Square, Stripe, Walmart, Etsy, BigCommerce, WooCommerce, or others. Moreover, TaxJar has an extraordinary set of functionalities, which include preparing returns, multi-stage support, local and state-level taxation reports, delivery taxability report, over- and under-detection of collections, and support for SmartCalcs API and CSV information.
TaxJar Features
Detailed and Accurate Sales Tax Reports: TaxJar’s local jurisdiction sales tax reports show sales tax collected not only for each state but the local jurisdiction (counties, cities, etc.) as well. You can also sort all the data by any date or range.
Estimated Sales Tax Reports: Users see a clear comparison of the amount they collected versus the amount they should have collected.
One-Click Automated Filing: TaxJar automatically files sales tax returns directly to the states. Available in almost every state of the U.S.
Real-Time Collection Data: The app’s dashboard shows how much sales tax has been collected for any state, and when is the next payment due. All the data is automatically updated each day.
Support for Multiple Platforms: Connects to platforms like eBay, PayPal, WooCommerce, Amazon, and more.
Simple Pricing: No initial fees, no setup fees, no contracts. Everyone pays a simple monthly fee that varies depending on the volume of the transactions.
General Ledger and Configurable Accounting Features: It provides a fully electronic interface for repeatable tax filing. Also, provides financial management features.
Customization features: API available for custom integration anywhere you like. If your preferred platform is not available then custom API cn come in handy.
TaxJar Benefits
TaxJar has remarkable capabilities in automating sales tax filing and reporting for multi-channel e-commerce traders. The platform allows you to connect all your online shopping carts once and all data will be downloaded for easier filing of sales tax. It consolidates information from all your sales channel into an easily accessible and centralized dashboard.
One noteworthy TaxJar feature is the AutoFile which is a reliable electronic filling solution for sales tax. This functionality collects data from all your e-commerce marketplaces and providers to prepare and file returns, along with your payments. The AutoFile service eliminates the submission of papers or online forms, TaxJar performs all the tasks on your behalf. With the solution, you will not worry anymore about the due dates, submitting late returns, or submitting tax returns on time for the multiple dues dates.
Moreover, Taxjar is a valuable asset regardless of whether you work with CPA professionals or not. Most of the customer working with this platform have CPAs. However, it makes a lot of sense to them to use it because it saves time and it’s super helpful when it comes to filing sales tax returns.
Additionally, TaxJar provides excellent customer service which can be relied on to help in managing sensitive data. Their customer services are available via phone and email. Besides, the program offers a multitude of helpful resources which enable customers to understand aspects of sales tax. The resources include; states tax guide, sales tax webinars, TaxJar blog, sales tax calculator, state registrations, and getting started guides.
Pros of TaxJar
- Nice that this company will take care of all the sales tax questions you have.
- If you are on online seller with nexus in multiple states, this software will save you time.
- Third, the software and its site is beautifully designed and very user-friendly. They are good at it and I see this company will be more successful in future as we are having a new sales tax wave.
- I signed up with this company since the start of my business back in 2014. After signing up installation was pretty easy as all I had to do is install the plugin and few clicks it was all set.
Cons of TaxJar
- I finally gave up and cancelled my subscription.
- Paying taxes for my Shopify online E-Commerce store was being very hard given all the customers I get were from all around the world. Tax Jar got my problems off my shoulders.
- If you autofile in a lot of states, the cost can add up quickly. It may not be an issue for bigger sellers, but small sellers may find it difficult to justify the price.
- Signing up for TaxJar has been the most disappointing experience our business has had in at least the past 3 years.
TaxJar Pricing and Discount with Promo, Coupon code
TaxJar has 4 different pricing tiers, each based on how many transactions you have per month. If you have under 1,000 transactions a month then you qualify for the Basic plan which is $19 a month. Up to 5,000 transaction is $49 a month while up to 10,000 transactions is $99 a month.
Then as I mentioned you have to pay $19.95 per filing per state you’ve enrolled in for autofile.
I have yet to see TaxJar offer any sale discounts or coupons for any of their plans. Howev, r they do offer a 30-day free trial.
For a large seller like me, I’ve already outgrown their largest plan. So I’m currently paying $199 a month for 50,000 transactions and $159.60 for autofile.
While it’s a very large expense, I have to say it’s well worth it.
When I first started with my Amazon FBA business, I considered finding some tax accountant that I could just pay to handle all this for me. But after I got some quotes, I was sticker shocked by how much it would cost me to have someone else handle this for me.
So when compared to that, the price I’m paying per month for TaxJar still feels like a steal.
Final Thoughts
Managing and filing tax returns is definitely not a fun process at all, but it’s still a necessary evil that all online business owners have to deal with very often.
This is where TaxJar swoops in and saves the day. It makes sure that you have all the reports regarding how much tax you owe and helps you automate the entire tax filing process.
For small to large businesses, TaxJar provides an accessible, easy to manage and quite robust service to help take the load of sales tax returns off your shoulders.
Whether you are only looking for a little help with your taxes, a one-stop solution to handle all your sales data from multiple platforms, or if you want to reduce the amount of time you waste filing your sales tax returns, TaxJar is the perfect services for you.
