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! 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. 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 Past Sales
Avalara comes with a wide range of tools for tax and business. 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 Past Sales
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.
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. 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. 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 and provides reliable sales tax compliance for a broad range of customers. The only difference that sets it apart from the rest is its lower price range. 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. It’s impressive to see that the team continues to work hard for sales tax solutions at low prices. TaxCloud integrates seamlessly with more than 85 e-commerce services, including Amazon, Stripe and Shopify. 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 makes it clear that its best selling is the low price and extreme cost-efficiency. 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 Past Sales
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 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. 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. 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. 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. 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
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. Quaderno works best for US-based companies, but it is also reliable with international users. 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. 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 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. 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. It is the most popular tax software on 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. 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. 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 Past Sales
Last Thoughts Taxjar Vs Past Sales
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. 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 a perfect match for an entrepreneur looking for the same reliable tax compliance service at the cheapest, most cost-effective 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.
- 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.