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! 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. 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. Let’s get started!
For those of you who prefer a more visual experience, here is a video review from Marcus Stonelius’ YouTube channel. Do check out our article below, however, because it has a comprehensive overview of TaxJar.
TaxJar vs. Avalara Taxjar Vs Outright
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.
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 Outright
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 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 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. 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.
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 integrates seamlessly with more than 85 e-commerce services, including Amazon, Stripe and Shopify. 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 is clear in stating that its greatest selling point is the extreme cost-efficiency and low price. 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.
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 Outright
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’re quite more advanced than you might think – like, Avalara-type advanced. Taxify claims to offer a “world-class sales tax” service that guarantees no such hard effort on the user’s end. 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. TaxJar’s starting plan starts at $47 per month. This is more than twice as much as Taxify. But, if you could ask anyone who has used Taxify beforehand in their business plan, they may say the experience was worth the price.
Comparisons of the pros and cons
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. For larger businesses, the price is acceptable, but it can be overwhelming for small businesses. 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
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’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.
Pros, Cons, and Similarities
Quaderno, like Sovos Taxify hits the sweet spot in 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. Quaderno works best for US-based companies, but it is also reliable with international users. 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 is a SaaS tax compliance service that has the same caliber as our competitors at Taxify, Avalara, and even 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 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.
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. 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. Although the features are future-proof, they are not available to everyone. Taxjar Vs Outright
Last Thoughts Taxjar Vs Outright
Thanks for reaching the end of our review where we’ve compared TaxJar with five of its worthy competitors! TaxJar is not the only solution to all sales tax issues. 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 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.
- 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.