It is crucial to be tax compliant when doing business. 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.
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 Others
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.
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 Others
Comparisons of the pros and cons
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.
TaxJar offers exceptional services. Avalara goes one step further, offering more advanced features to suit a wider range of tax classes. 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 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. 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. Its lower price point is what sets it apart. TaxCloud is a cost-effective solution for managing taxes. It starts at $10 and includes “core services”, such as tax calculation and reporting, tax compliance and economic nexus tools like TaxJar’s.
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. Another one of TaxCloud’s big advantages is the solid calculating and reporting, keeping a wide range 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. 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 Others
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. 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. 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
Taxify’s unique selling point is its customer service. It’s available on many platforms, including e-mail support. However, it is always available to assist you when 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. For larger businesses, the price is acceptable, but it can be overwhelming for small businesses. In addition, there have been some complaints about technical data-related issues and problems with 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. You could get all these starting at $29 per month with the Hobby plan.
Comparisons of the pros and cons
Quaderno, like Sovos Taxify hits the sweet spot in customer service. Quaderno users will always receive the assistance they require for any situation. This service is also much more reliable than TaxJar or even Avalara. While the other two work best with US-based businesses, Quaderno is reliable in most ways with users from other countries. Its transparent reporting and powerful API tool are also worth mentioning.
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 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. 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’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. You may contact Vertex customer service to arrange payment.
Pros, Cons, and Similarities
Vertex isn’t just known for its ease of use like TaxJar and others. Vertex is also well-known for offering advanced tools to help finance and business owners with all their tax-related issues. 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. 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 Vs Others
Final Thoughts Taxjar Vs Others
We’re glad you reached the end of this review, where we compared TaxJar to five of its worthy rivals! 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. 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 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.