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. 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.
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. 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 Tax
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. 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 Tax
Comparisons of the pros and cons
TaxJar proves to have delivered when it comes to translating complications in sales tax compliance into much simpler ways, with the help of advanced tools and integrations. 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. 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. 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 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.
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 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. 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 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.
Comparisons of the pros and cons
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.
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 Tax
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 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. Taxify’s advanced features will, undoubtedly, reflect 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.
Comparisons of the pros and cons
If there’s one unique thing that Taxify has, it’s 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. 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 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. You could get all these starting at $29 per month with the 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. 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. 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. We can’t deny the ease of Quaderno’s use and accuracy rates, despite its short trial period.
TaxJar vs. Vertex
Vertex, a SaaS tax compliance platform, is the same quality as Taxify, Avalara and 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 has a global reach akin to Quaderno, and its fast-action calculations between different types of taxes – not just sales tax! – is what makes it well-received.
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. 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. 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 Tax
Final Thoughts Taxjar Vs Tax
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.
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 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 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.