It is crucial to be tax compliant when doing business. Tax compliance is not only what keeps your business running, but it’s also what drives our economy. Here’s something entrepreneurs can relate to: managing tax-related issues is very complex. It’s even more difficult if you have a small team or if you handle everything yourself.
You don’t have to worry about it today! There are tons of services that are guaranteed to do most of the work for you. One of these is TaxJar, which offers state-of-the-art features and services to large, medium, and small businesses, and even freelance merchants.
Of course, TaxJar isn’t the end-all, be-all tax compliance solution out there. With that in mind, we’ll be taking a look at the platform’s most qualified alternatives, as well as how their features fare in comparison, the pricing, and the overall customer experience. Let’s get started!
For those of you who prefer a more visual experience, here is a video review from Marcus Stonelius’ YouTube channel. To get a comprehensive overview of TaxJar, you may still want to check out our article below.
TaxJar vs. Avalara Taxjar And Quickbooks
Avalara comes with a wide range of tools for tax and business. It’s also claimed to be TaxJar’s closest alternative yet. Avalara includes a convenient business license form, an all-in one sales tax registration process and the AvaTax calculation software. It also offers a quick-access file/remit option for small businesses that can’t afford to have in-house or third-party accounting management.
TaxJar also offers the AutoFile tool, which handles most sales tax filings. It also provides economic insights to help you expand your business into new territories. Taxjar And Quickbooks
Pros, Cons, and Similarities
TaxJar has proven to be a reliable tool for simplifying complex sales tax compliance issues. It is also much easier to determine nexus between US states.
TaxJar offers exceptional services. Avalara goes one step further, offering more advanced features to suit a wider range of tax classes. Although the free trial is longer than TaxJar’s and the pricing is transparent, Avalara is available in more countries than the US, with over 80 countries. We are not sure if they get the same powerful services as US businesses.
TaxJar is known to have issues with certain parts of its interface. Additionally, the pricing may not be fully fixed as there may be additional fees for users who exceed the quota on any low-tier plan. TaxJar also claims that it is not fully automated. Some features will require extra effort from the user. Avalara, on the other hand, has been notorious for its bad customer service and lacking certain local features such as options for state and local tax filings for most tiered plans.
The interface of TaxJar can be confusing for small businesses, especially if it is not familiar. Avalara and TaxJar are both well-received for their simplicity and time-savings, as well their rooftop-accurate calculations and, to a certain extent, their starting price range of $19.
TaxJar vs. TaxCloud
TaxCloud shares the same goals as TaxJar, providing reliable sales tax compliance for a wide range of customers. The only difference that sets it apart from the rest is its lower price range. Starting at just $10 with its “core services” such as detailed tax calculation and reporting features, automated tax compliance, and economic nexus tools similar to TaxJar’s, TaxCloud offers businesses an affordable solution when it comes to managing taxes.
TaxCloud used to offer a free service that allowed users to use the platform’s tax compliance tools, without having to pay. Unfortunately, since the 2018 Supreme Court ruling on nexus, TaxCloud could no longer be allowed to give out its free service. Still, it’s quite impressive that the team is still dedicated to bringing sales tax solutions for prices as low as possible. TaxCloud seamlessly integrates with over 85 e-commerce and online shopping cart services such as Shopify, Amazon, Stripe, and more. It also allows users to track sales tax progress, as well as product-type and use-based tax exemptions, in between US states.
Pros, Cons, and Similarities
TaxCloud is clear in stating that its greatest selling point is the extreme cost-efficiency and low price. TaxJar, which offers similar services for sales tax, starts at $19. TaxCloud’s other major advantages include the solid reporting and calculating, which keeps a wide variety of businesses on track.
While it has been proven to be a great tool to add to anyone’s business strategy, it’s hard not to ignore its glaring flaws. Like Avalara’s, TaxCloud’s customer service has been criticized for its lack of response, especially to some very important matters. There have also been a few reports on the slow dashboard, plus possible hidden fees that could occur.
If TaxCloud and TaxJar had similarities, the best answers we can give you so far are their shared accurate calculation rates and overall simplified user experience. Taxjar And Quickbooks
TaxJar vs. Sovos Taxify
Sovos Taxify is next on our list of TaxJar competitors. This offers more options and features for business owners than TaxJar. They are far more advanced than you might imagine – Avalara-like advanced. Taxify claims to offer a “world-class sales tax” service that guarantees no such hard effort on the user’s end. It offers a simple user interface. Customers have the option to use a few of its competitive features, such as PDF filings, payment information and the cooperative nature of sales tax payments. There is also the ability to customize.
Despite its attractiveness, some entrepreneurs may be turned off by the high price. Taxify’s advanced features will, undoubtedly, reflect the pricing. The starting plan begins at a whopping $47 per month, more than twice the amount that TaxJar offers. However, anyone who used Taxify in their business plans before may agree that it was worth it.
Comparisons of the pros and cons
If there’s one unique thing that Taxify has, it’s customer service. It’s available on many platforms, including e-mail support. However, it is always available to assist you when you need it. Taxify’s ability to customize information before users can send reports adds an extra layer of assurance.
At $47 upwards, Taxify’s pricing range is quite expensive compared to others. For larger businesses, the price is acceptable, but it can be overwhelming for small businesses. There have been complaints about technical data issues and difficulties in calculating negative transactions.
Taxify is a similar product to TaxJar in that it integrates with many apps easily and is easy to use.
TaxJar vs. Quaderno
Quaderno is a platform that allows you to concentrate on more important matters like TaxJar. It also has the ability to track sales tax nexus in territories other than the US, such as Avalara. Quaderno is praised for its outstanding performance. It offers flexible, automated sales tax compliance services around the globe “in just a click”.
Quaderno’s other highlights include an easy-use dashboard where users can take a look at all the detailed data from all those integrations and taxes, automatic sales tax calculations and reports within the US and beyond, and a 100% customizable invoices added with multiple language support. You could get all these starting at $29 per month with the Hobby plan.
Comparisons of the pros and cons
Like Sovos Taxify, Quaderno hits the sweet spot when it comes to customer service. Users are guaranteed to receive the help they need for any kind of situation. This service is also much more reliable than TaxJar or even Avalara. Quaderno works best for US-based companies, but it is also reliable with international users. Also worth mentioning is the transparent reporting and its powerful API tool, among other nice things.
Quaderno is perfect in all aspects. However, we must point out a few shortcomings, including a lack custom domain support and guides for tax-related questions. Its free-trial period is one of, if not the shortest, compared to all our other competitors on this list, with a span of 7 days. Despite the very limited period, we can’t deny that Quaderno’s ease of use and accurate rates are on par with TaxJar’s.
TaxJar vs. Vertex
Vertex is a SaaS tax compliance service that has the same caliber as our competitors at Taxify, Avalara, and even TaxJar. Its longevity in the industry, with more than 40 years of experience, is what makes it stand out. While TaxJar and other similar platforms know a thing or two about the state of tax management today, Vertex has more years of experience, knowing what’s been happening. That’s what makes it one of the leading tax software in the market. Vertex has a global reach akin to Quaderno, and its fast-action calculations between different types of taxes – not just sales tax! Its popularity is due to its ease-of-use.
With Vertex, users get additional features including support for physical locations with Vertex O Series Edge, the Data Integrity system designed for tax pros with a simple and comprehensive interface, and a Certificate Center where all types of documents from tax applications to exemption certificates are stored in the cloud. Vertex does not have a fixed price range or subscription options. You may contact Vertex customer service to arrange payment.
Pros, Cons, and Similarities
Vertex isn’t just known for its ease of use like TaxJar and others. Vertex is also well-known for offering advanced tools to help finance and business owners with all their tax-related issues. Vertex is praised by most users for its well-organized file handling, numerous features that extend beyond the US, as well as precise calculations and data collection.
As Vertex seems to be a good fit for large entrepreneurship, it may not be as ideal for smaller businesses due to its complex design. Although transactions can take several minutes to complete, they are slow and often slow. There have been a few errors, but nothing serious. Although the features are future-proof, they are not available to everyone. Taxjar And Quickbooks
Final Thoughts Taxjar And Quickbooks
Thanks for reaching the end of our review where we’ve compared TaxJar with five of its worthy competitors! TaxJar is not the only solution to all sales tax issues. We’ve provided a list with alternatives to TaxJar if you need more features. However, if you believe that you’re better off with TaxJar for all your tax compliance needs due to its easy interactions, price range, and compatibility with smaller-scale businesses, we’ll surely support you for it.
But if you ever feel that it doesn’t offer enough to meet the needs of your business, here’s a bullet list of our other five competitors in the sales tax compliance field, along with who the ideal user should be.
- Avalara is the perfect choice for users who want the same features as TaxJar but also have the option to select other tax types, such as VAT.
- TaxCloud is the perfect choice for entrepreneurs looking for reliable tax compliance services at a low price.
- Sovos Taxify is a good choice for an owner of a large, preferably profitable enterprise that wants world-class tax-related tools at a reasonable price.
- Quaderno is perfect for a medium- or large-sized business owner looking for fast-action service and reliable customer support that goes beyond borders, both at a reasonable cost.
- Vertex is the ideal platform for anyone working in a medium-sized to large company that wants a wide range of tools and support from an experienced platform.