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. 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.
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. To get a comprehensive overview of TaxJar, you may still want to check out our article below.
TaxJar vs. Avalara Taxjar Vs Till Highlights
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. 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.
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 Till Highlights
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. 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 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 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. 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.
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. 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 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 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.
Although it has been proven to an excellent tool for any business strategy, it is difficult to overlook its 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 Till Highlights
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 it offers a “world-class” sales tax service that requires no effort from the user. It offers a simple user interface. It also gives customers flexibility with a couple of competitive features like PDF filings, payment information, the cooperative nature of the sales tax payment process, and allowance for customization, among other things.
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.
Pros, Cons, and Similarities
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. In addition, there have been some complaints about technical data-related issues and problems with 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
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. Quaderno is praised for its outstanding performance. It offers flexible, automated sales tax compliance services around the globe “in just a click”.
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. All this is available for as low as $29 per month with Quaderno’s Hobby plan.
Comparisons of the pros and cons
Quaderno, like Sovos Taxify hits the sweet spot in customer service. Users are guaranteed to receive the help they need for any kind of 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. 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. We can’t deny the ease of Quaderno’s use and accuracy rates, despite its short trial period.
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. 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! 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.
Pros, Cons, and Similarities
Vertex isn’t just well-known for its simplicity of use, such as TaxJar or others. Vertex is also well-known for offering advanced tools to help finance and business owners with all their tax-related issues. 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.
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 Till Highlights
Final Thoughts Taxjar Vs Till Highlights
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. We’ve provided a list with alternatives to TaxJar if you need 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 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.