In doing business, it’s crucial to understand the importance of tax compliance. Tax compliance is not only what keeps your business running, but it’s also what drives our economy. However, here’s a thing about managing tax-related matters that entrepreneurs like you can relate to in any way: it’s very complicated; much harder if you’re part of a small team, or even worse if you’re handling everything alone.
You don’t have to worry about it today! You can trust a lot of services to take care of most of the work. TaxJar is one of them. It offers state-of-the-art features and services for large, medium and small businesses as well as freelance merchants.
TaxJar is not the only solution for tax compliance. 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. Do check out our article below, however, because it has a comprehensive overview of TaxJar.
TaxJar vs. Avalara Taxjar And Stripe
Avalara comes with a wide range of tools for tax and business. It’s also claimed to be TaxJar’s closest alternative yet. Included within Avalara are its convenient business license forms, an all-in-one sales tax registration process, the AvaTax calculation system, and a quick-access file-and-remit method for businesses who can’t afford in-house or 3rd 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 Stripe
Comparisons of the pros and cons
TaxJar proves to have delivered when it comes to translating complications in sales tax compliance into much simpler ways, with the help of advanced tools and integrations. It’s also easier to manage nexus determination between US states.
TaxJar offers exceptional services. Avalara goes one step further, offering more advanced features to suit a wider range of tax classes. The free trial period is longer than TaxJar’s, the pricing is more transparent, and availability extends beyond the US with more than 80 countries on the line, though we’re not certain they receive the same powerful services that US businesses benefit from.
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. It’s also not fully automated as TaxJar claims, since some features may need extra work on the user’s part. 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.
Like TaxJar’s, the interface can be quite confusing, especially for smaller-scale businesses. 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.
It’s important to note that TaxCloud once offered a free service where users could utilize the platform’s tax compliance tools without needing to pay. TaxCloud’s free service has been discontinued due to the Supreme Court’s 2018 ruling on nexus. Still, it’s quite impressive that the team is still dedicated to bringing sales tax solutions for prices as low as possible. TaxCloud integrates seamlessly with more than 85 e-commerce services, including Amazon, Stripe and Shopify. 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 makes it clear that its best selling is the low price and extreme cost-efficiency. To compare, TaxJar offers similar sales tax services starting 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. TaxCloud’s customer support has been criticised for not responding quickly to important questions, much like Avalara’s. 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 Stripe
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’re quite more advanced than you might think – like, Avalara-type advanced. Taxify claims it offers a “world-class” sales tax service that requires no effort from the user. 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.
However, while it may look appealing, it’s the expensive price range that may turn some entrepreneurs off. Taxify’s advanced features will, undoubtedly, reflect the pricing. TaxJar’s starting plan starts at $47 per month. This is more than twice as much as Taxify. But, if you could ask anyone who has used Taxify beforehand in their business plan, they may say the experience was worth the price.
Pros, Cons, and Similarities
Taxify’s unique selling point is its customer service. Not only is it available on more platforms than just e-mail support unlike other sales tax solutions, but it’s also always ready to help you whenever you need it. Taxify’s ability to customize information before users can send reports adds an extra layer of assurance.
Taxify’s pricing range starts at $47 and can go up. The amount is okay enough for larger-scale businesses, but for smaller ones, it’s understandable for them to think it may be too much. 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.
Pros, Cons, and Similarities
Quaderno, like Sovos Taxify hits the sweet spot in 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.
Although Quaderno appears perfect in most aspects, there are a few flaws that we should point out, beginning with a certain lack of guides for tax-related matters, and a lack of custom domain support. With a 7-day trial period, it is among the most reasonable of all our competitors. 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’s global reach is similar to Quaderno and its quick-action calculations between various types of taxes, not just sales tax, makes it a great choice. 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. However, you may want to contact its customer support so you could sort out the payment.
Comparisons of the pros and cons
Vertex isn’t just known for its ease of use like TaxJar and others. It’s also known for providing businesses and financiers with advanced competitive tools that meet all tax-related needs. 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. Transactions are often slow, taking minutes just to get it done, and a slew of errors have been reported, but nothing major. While the features may be future-perfect, they’re not a lot to be offered to just anyone. Taxjar And Stripe
Final Thoughts Taxjar And Stripe
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. That’s why we’ve put up a list of alternatives for you to consider if you want 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 ideal for a user who wants the same features as TaxJar’s but with the welcome addition of more tax options to choose from – not just sales tax, but other types like VAT.
- TaxCloud is the perfect choice for entrepreneurs looking for reliable tax compliance services at a low price.
- Sovos Taxify is suitable for an owner of a preferably large enterprise who wants flexible world-class tax-related tools for a price that surely reflects it.
- 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.
- Lastly, Vertex is ideal for someone from a medium- to a large-scale company who wants a diverse range of tools from an experienced platform.