Taxjar Pitchbook Taxjar

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It can be difficult to manage sales tax.

With stacks of paperwork, hefty amounts of calculations, and lots of challenging obstacles, it’s no wonder why sales tax compliance is one of the most difficult business processes. You may be surprised to learn that there is an easier way around it. TaxJar is a cloud-based, state-of the-art automated sales tax platform.

With TaxJar, all the challenges in sales tax are simplified, giving you and your business the upper hand. In this review, we’ll take you through all the things you need to know about this service. We’ll also share with you the pros and cons, and our final thoughts about whether or not TaxJar is worth adding to your business management ecosystem. Let’s go!

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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.

What Does TaxJar Do? Taxjar Pitchbook Taxjar

Since its inception in 2013, TaxJar serves business enterprises and online sellers, intending to ease the already complicated process of sales tax compliance. There are over 11,000 tax jurisdictions in the United States. Each one has its own rules and regulations. Businesses had to adhere to sales tax regulations back then. Rates were determined by where transactions were made, inventory stock locations, and the number of employees they employed.

This process may appear simple on a surface level, but in reality, it’s quite complicated. Companies were given different tax burdens to handle, which can vary depending on various factors. The US Supreme Court in 2018 ruled that all businesses have to pay sales tax regardless of where the product was purchased. This resulted in more burdens for business owners, having to learn and memorize tax codes upon tax codes on top of everything else.

It’s a lot to take, right? Well, TaxJar takes most of the complications in sales tax compliances and turns them into simple, less daunting tasks. That way, you can prioritize what matters the most with your business, without the added hassles of hefty tax computation.

What are its Pros and Cons

We’ve compiled a list of pros & cons to help you make a decision about whether TaxJar is right for you. Taxjar Pitchbook Taxjar

Pros

  • TaxJar has been designed to be simple, quick, and automated. It will keep you in compliance for more than 11,000 tax jurisdictions across the U.S.
  • The AutoFile tool will take care of all the details for you.
  • TaxJar allows you to save time and allow you to concentrate on your business.
  • It’s easy to use – you don’t need to be a full-on tax or accounting expert to understand how it works!
  • TaxJar is not only less complicated than other software, but it also offers amazing customer support and a wealth of resources that will help you comply with sales tax.

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Cons

  • Although TaxJar is known to be generally convenient, it may be a bit complicated on the first try, especially for the uninitiated merchant.
  • The interface can also sometimes be inconvenient, as some users have reported cases of having more than five browser tabs open just to file one state’s tax return.
  • Pricing for lower-tier plans may vary depending on factors like additional AutoFile fees if credits are exhausted. We’ll be discussing pricing soon.

How Much Does TaxJar Cost?

TaxJar offers three pricing plans: Starter, Professional, and Premium. Let’s take a deeper look at these subscription tiers.

Starter

The Starter plan starts at $19/month and provides essential sales tax services to small businesses. It usually handles up to 200 total purchase and returns orders per month, but the price may change if the volume goes past the number. This tier provides free tools that will help you greatly with sales tax compliance such as sales tax reporting, AI driven product taxability recommendations and basic CSV imports.

Customers also get data integrations and up to four free AutoFiles per annum. Starter also allows for support for multiple business accounts and e-mail support.

For professionals

If your business has more experience and expanded reach, more challenges may likely come ahead. The Professional plan is for you. You get all the features of the Starter Tier, plus upgrades such as full API access and advanced CSV imports.

Professional also includes increased data import and API integration limits from 3 to 10, 10,000 advanced API calls per minute, up to 10 team management users, and 12 free AutoFiles per year. If you use TaxJar Professional and manage to rake up to over 1,000 orders, you’re entitled to phone customer support on top of e-mail support. If you receive more than 200 orders, the price for this tier could change.

Premium

TaxJar Premium includes all the features that you need to ensure sales tax compliance. Apart from providing experienced businesses and enterprises with all the Starter and Professional features, Premium offers unlimited API and data integrations with many e-commerce and marketing services, unlimited AutoFiles, and an unlimited number of team users.

You also get 25,000 API calls per hour, and white-glove support through a dedicated account management group. Premium is not priced in a fixed range like the other plans. Instead, it’s fully customizable according to your business’s needs, and can be negotiable through TaxJar’s customer service.

Try it Free of Charge

TaxJar is worth a free 30-day trial. You can get full access to all the Professional plan features and tools, including API access and integrations, data imports, and team and user management. You don’t need to pay upfront to access this trial! Taxjar Pitchbook Taxjar

Taxjar Pitchbook Taxjar

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TaxJar’s Features

Automatic Sales Tax Calculations

TaxJar offers fully optimized functions and services that are designed to reduce the tax burden. One of those is its calculation process. Calculating sales tax with TaxJar will give you instantly accurate results! Not only does it always ensure you the right rates in correspondence with your customer’s address and tax jurisdiction, but it also gives you the amounts in real-time.

With TaxJar, you won’t need to take long to calculate taxes one-by-one nor go through the added hassle of keeping up with the changes. The platform’s team tracks all changes related to sales tax rates and laws, and integrates them into the platform regularly.

TaxJar Report

TaxJar provides more than just top-notch calculations. It also offers automated reports that include sales tax data from linked accounts, CSV imports and individual state sales tax reports. All of this data is automatically combined into reports for different states with breakdowns according to their tax jurisdictions.

TaxJar makes it easier and more accessible to organize reports. Everything is centralized, which allows for faster collaborations with your finance department. Its reporting dashboard lets you see in-depth analysis based on your recent activity. You’re also always up-to-date, as TaxJar collects data automatically all the time.

AutoFile

AutoFile is what makes the platform stand out from the rest. It’s an electronic sales tax filing tool that gathers user information from e-commerce providers and files them into an automated sales tax return report and payment to be submitted to any state.

What’s great about AutoFile is that you’re guaranteed to never miss a deadline! There’s no need to even go through the stress of paperwork or extra hands, as it’s designed to be easily manageable. It saves time and money in the long-term.

It’s amazing, but it can also be a luxury for lower-tier subscribers. Starter plan users, for example, get only up to 4 free AutoFile enrollments per year.

Sales Tax Nexus Insights

If you use TaxJar in selling your items online, it’s important to know a thing about economic nexus. We’ve essentially covered this topic earlier, but to summarize, instead of paying sales tax within your home state, you will have to encounter paying sales tax to the states where your customers purchased your products, even if you’ve never been a resident there. Taxjar Pitchbook Taxjar

It can be difficult to determine the nexus. TaxJar offers easy-to-understand insights that will help you stay on track. The economic nexus dashboard not only allows you to check the activity between states, but also shows you if you have reached the required threshold for each state. This is especially useful if you have a growing business that wants to expand into more states.

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Integrations with Online Business Services

TaxJar can seamlessly integrate with many online business services. To determine sales tax, you can connect your account with online marketplaces such as Amazon, Etsy and eBay. Integrations can be made with e-commerce platforms such as Shopify, BigCommerce and other similar services that allow you to sell your listings, use payment gateways such as Stripe or PayPal, and operate management systems like Oracle NetSuite, Intuit QuickBooks and many more.

Other partner services that are integrative with TaxJar include Square, Xero, Walmart, Salesforce, Magento, and WooCommerce among others. If you can’t find your preferred online business solution in the list, you can always build your own with the TaxJar API, or by importing all data from third-party services through CSV.

Is TaxJar the right fit for your business?

TaxJar has been a reliable and high-tech solution that addresses most of the issues business owners have in managing sales tax. It is a popular choice because it is easy to use, it saves time, and it can help your business in many other ways.

While it’s highly acclaimed – and rightly so – we can’t fully say it’s perfect in all aspects. Some users reported having problems with customization, while others found issues with TaxJar’s integration with some apps like Shopify. There have also been problems with automated calculation as well as interface misunderstandings. These issues could be addressed.

Issues aside, if we answered the question “Is TaxJar the perfect fit for your business?” it would be a resounding YES! This is a great tool to add to your business strategy.

Frequently Asked Questions Taxjar Pitchbook Taxjar

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Which types of businesses use TaxJar?

TaxJar can be used by small and medium businesses, large-scale enterprises, and even freelancers. As of 2022, TaxJar has served over 20,000 businesses, including some of the well-known ones, like Coca-Cola, Land Rover, Microsoft, Shein, and many others.

Does TaxJar work in other countries outside the U.S?

As of recently most of TaxJar’s features are limited to the United States. They have not yet been extended to other countries outside US jurisdiction. The TaxJar API tool only is available in certain territories outside the United States. Businesses in Canada, Australia, the UK, and countries included in European Union can use TaxJar API.

Can I cancel my TaxJar account? How can I cancel my TaxJar account?

If you are unhappy with TaxJar’s service, you can cancel it by going to your account settings. Once you head over to Plans & Billings, you can click the red link that leads you to cancel your current subscription.

You will lose access to TaxJar’s reporting tools and AutoFile. You can reactivate or cancel your subscription at any time if you want to gain access to these services.

What are the alternatives to TaxJar?

TaxJar isn’t the only sales tax compliance solution available. There are other alternatives out there, with some offering more features and compatibility with more territories, and others with cheaper price ranges. The following are alternatives to TaxJar.

  • Avalara
  • Sovos Taxify
  • Vertex
  • TaxCloud

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