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. 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.
TaxJar is not the only solution for tax compliance. 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 Invoicing
Avalara comes with a wide range of tools for tax and business. Avalara is also considered to be TaxJar’s most close alternative. 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.
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 Invoicing
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. 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 tends to have misunderstanding issues in terms of some parts of the interface, plus the pricing is not fully fixed given there may be additional fees especially once the user hits the quota of any of its low-tier plans. 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.
Like TaxJar’s, the interface can be quite confusing, especially for smaller-scale businesses. 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.
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.
Comparisons of the pros and cons
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. 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 Invoicing
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 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.
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. However, anyone who used Taxify in their business plans before may agree that it was worth it.
Comparisons of the pros and cons
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. 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. 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
If you’re considering a platform with the ability to focus on your important matters more like TaxJar and the power to track sale tax nexus even in territories outside the US like Avalara, then check out Quaderno. 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.
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.
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. TaxJar and similar platforms may know a little about tax management, but Vertex has more experience and knows what’s happened. It is the most popular tax software on 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.
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.
Pros, Cons, and Similarities
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.
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 Vs Invoicing
Final Thoughts Taxjar Vs Invoicing
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.
If you feel it is not sufficient to meet your needs, we have a list of five other competitors in the field of sales tax compliance. We also provide information on who the ideal user should become.
- 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 a perfect match for an entrepreneur looking for the same reliable tax compliance service at the cheapest, most cost-effective 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.
- 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.