In doing business, it’s crucial to understand the importance of tax compliance. It’s not just what keeps your business matters going, but also what makes up 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! 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. Without further ado, let’s begin!
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 For Profit
Avalara is equipped with a diverse set of tax and business tools within your reach. 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 Vs For Profit
Comparisons of the pros and cons
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.
While TaxJar provides exceptional services, Avalara steps it up further with more advanced features for a wide range of tax classifications in comparison. 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. TaxJar also claims that it is not fully automated. Some features will require extra effort from the user. Avalara on the other hand has a reputation for poor customer service and lagging certain local features, such as state and local tax filings options 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 as TaxJar, providing reliable sales tax compliance for a wide 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.
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. 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 Vs For Profit
TaxJar vs. Sovos Taxify
Next on our list of TaxJar’s competitors is Sovos Taxify, which offers more features and options for business owners than the former. 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. Not only does it have a breezy user experience. It also gives customers flexibility with a couple of competitive features like PDF filings, payment information, the cooperative nature of the sales tax payment process, and allowance for customization, among other things.
Despite its attractiveness, some entrepreneurs may be turned off by the high price. Indeed, the advanced functions that Taxify offers will surely, in any way, reflect on the pricing. The starting plan begins at a whopping $47 per month, more than twice the amount that TaxJar offers. 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
If there’s one unique thing that Taxify has, it’s 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. Another advantage of Taxify is its ability to allow users to customize details before they could even send their reports for added 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. In addition, there have been some complaints about technical data-related issues and problems with 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. 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 also offers a simple dashboard that allows users to view all of the details from the integrations, sales tax calculations, reports and reports within the US, as well as customizable invoices with multiple languages. All this is available for as low as $29 per month with Quaderno’s Hobby plan.
Pros, Cons, and Similarities
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. 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.
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. 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, 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. 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.
Vertex offers additional features, including the ability to support physical locations using Vertex O Series Edge. This Data Integrity system is designed for tax professionals and provides a user-friendly interface. A Certificate Center stores all documents, from tax applications to exemption certificates, in the cloud. In terms of price, Vertex has no exact fixed 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 well-known for its simplicity of use, such as TaxJar or 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.
Vertex is a great fit for large entrepreneurs, but it might not work well for small businesses because of its complicated 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 For Profit
Last Thoughts Taxjar Vs For Profit
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. That’s why we’ve put up a list of alternatives for you to consider if you want 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 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 the perfect solution for small and large business owners who need fast, reliable support and customer service that goes beyond borders.
- 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.