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. 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.
Today, you won’t need to worry too much about it! 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.
Of course, TaxJar isn’t the end-all, be-all tax compliance solution out there. We’ll take a look at some of the most popular alternatives to TaxJar, along with how they compare, their 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 Vs Before Taxbase
Avalara is equipped with a diverse set of tax and business tools within your reach. Avalara is also considered to be TaxJar’s most close alternative. 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.
Meanwhile, TaxJar has the AutoFile tool which does most of the sales tax filing work for you, economic nexus insights for whenever your business expands to other territories, real-time calculations with crazy accurate results, and automated reports. Taxjar Vs Before Taxbase
Pros, Cons, and Similarities
TaxJar has proven to be a reliable tool for simplifying complex sales tax compliance issues. It’s also easier to manage nexus determination between US states.
While TaxJar provides exceptional services, Avalara steps it up further with more advanced features for a wide range of tax classifications in comparison. 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. 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.
The interface of TaxJar can be confusing for small businesses, especially if it is not familiar. Despite this, both Avalara and TaxJar have been appreciated for their ease-of-use and time-saving traits, as well as their rooftop-accurate calculations, and to some extent, the starting price range of $19.
TaxJar vs. TaxCloud
TaxCloud shares the same goals and provides reliable sales tax compliance for a broad range of customers. Its lower price point is what sets it apart. 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. 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 seamlessly integrates with over 85 e-commerce and online shopping cart services such as Shopify, Amazon, Stripe, and more. It allows users to track the progress of sales tax, as well product-type and use-based tax exclusions, 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. Another one of TaxCloud’s big advantages is the solid calculating and reporting, keeping a wide range of businesses on track.
Although it has been proven to an excellent tool for any business strategy, it is difficult to overlook its flaws. TaxCloud’s customer support has been criticised for not responding quickly to important questions, much like Avalara’s. A few complaints have been made about the slow dashboard and possible hidden fees.
TaxCloud and TaxJar share many similarities. We can only give you the best answers if they have similar calculation rates and a simplified user interface. Taxjar Vs Before Taxbase
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. TaxJar’s starting plan starts at $47 per month. This is more than twice as much as Taxify. However, anyone who used Taxify in their business plans before may agree that it was worth it.
Pros, Cons, and Similarities
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. 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.
Despite the cons, Taxify has a few similar traits to TaxJar, in that they offer easy integration with most apps and their ease of 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. Praised for its stellar performance, Quaderno guarantees users flexible automated sales tax compliance services all over the world “in just one click.” It’s more than just sales tax management, as the platform offers simple yet optimized features, one of which is the light-speed integration with partner providers in the likes of Amazon, WooCommerce, and Stripe, plus tons more 3rd-party apps through Zapier.
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. All this is available for as low as $29 per month with Quaderno’s Hobby plan.
Comparisons of the pros and cons
Like Sovos Taxify, Quaderno hits the sweet spot when it comes to customer service. Quaderno users will always receive the assistance they require for any situation. The service also has big advantages in comparison to TaxJar and even Avalara. While the other two work best with US-based businesses, Quaderno is reliable in most ways with users from other countries. 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. 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, a SaaS tax compliance platform, is the same quality as Taxify, Avalara and TaxJar. What makes it different from the rest, though, is its longevity in the business scene, having been around for more than 40 years. TaxJar and similar platforms may know a little about tax management, but Vertex has more experience and knows what’s happened. 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. However, you may want to contact its customer support so you could sort out the payment.
Pros, Cons, and Similarities
Vertex isn’t just well-known for its simplicity of use, such as TaxJar or others. Vertex is also well-known for offering advanced tools to help finance and business owners with all their tax-related issues. Most users have praised Vertex for its organized file handling, diverse features that go beyond online stores and even beyond US territory, and of course, pinpoint-accurate 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. While the features may be future-perfect, they’re not a lot to be offered to just anyone. Taxjar Vs Before Taxbase
Final Thoughts Taxjar Vs Before Taxbase
Thanks for reaching the end of our review where we’ve compared TaxJar with five of its worthy competitors! Take note again that TaxJar isn’t the end-all, be-all solution for everything related to sales tax. We’ve provided a list with alternatives to TaxJar if you need more features. We’ll support you if you feel TaxJar is better for your tax compliance needs because of its ease-of-use, price range and compatibility with small-scale businesses.
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 the perfect solution for small and large business owners who need fast, reliable support and customer service that goes beyond borders.
- 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.