TaxJar Review - Is It Better Than Accountant?
Let’s talk taxes for a moment. Sale tax compliance is one of those things in life that are important, tedious, and complex at the same time.
Having errors can be at best annoying, and at worst costly, so you must pay extra attention to them.
Fortunately, we live in the era of the internet, and there are many services online that aim at helping you with it.
Among the most well-known service is TaxJar. In this article, we tell you all you need to know about it.
What does it include, what are its prices, and how does it compare with others? And we will discuss more.
Without further ado, let’s begin.
What is TaxJar?
It is a service that manages everything related to your tax sales compliance. “Ok, it sounds cool but what does it have?”
It includes real-time calculations, immediate filling, useful filing, categorization, and more. It does all this with the help of an AI that makes sure you are using the right method to add your address.
Something likable is that the info is readily available. No need to contact the company to receive a quote or read tedious papers to know what you’ll get.
Besides, its site and API are straightforward to use and well organized. There is no room for getting lost or overwhelmed.
The servers are up 99.99% of the time, so you won’t have a single problem with it unless you are very unlucky.
Additionally, there’s a free demo that calculates exemptions, shipping fees, and many others.
Those in the US will find the demo very useful as it gives you information about your sale “nexus taxes”. That means that if you have any economic activity in a state, you must follow that state’s rules. This service makes it knowing what would be the price of a piece of cake.
TaxJar, as of Jan 2021, is available in North America (w/o Mexico), most EU countries, Australia, and a few others.
Before contracting the service, bear in mind there is a 30-day free trial that doesn’t need your card info!
There are two fixed plans and one custom-made, with starting values:
- Starter Mode: It cost $19/mo comes with reporting, basic CSV imports, and email support. It has caveats, is up to 200 orders per month, and only has 3 data import integrations. Besides, it comes with 4 Auto files per year. That’s the service that takes information for your e-commerce and submits it to the tax office.
- Professional: For $99/mo, it adds access to its API, all integrations, and phone support. You also get AI categorization, tax coding per product, advanced CSV imports, and more. This package still has a 200 order limit but increases the data integrations to 10 and Auto files to 12.
- Premium: Offers Unlimited Auto files, no given limits, Higher-end communication, and customer service. There is no fixed price as the plan adapts to your need.
Lastly, it is worth mentioning that You can buy extra Auto files regardless of your plan.
Where can I start with Taxjar
You can start here.
Tax Jar Integrations
There are a lot of integrations available for the site, divided into three categories:
- +15 Official Integrations. It was made and supported by Taxjar. Includes Amazon, eBay, PayPal, Shopify, WooCommerce, Salesforce, etc.
- +8 Premier Certified Integrations. Not made but tested and certified by Taxjar. Among those famous ones are Chargebee, Coreware, Direct Scale, Microsoft Dynamics NAV, etc.
- +10 Registered Certified Integrations. Same as the former, but without the ‘premier’ label. Includes Search Fit, Abante Cart, Shopsite, Sellercloud, etc.
Additionally, if you’re contracting the plans with API access, you get Git-Hub support. And if you feel a bit adventurous, you can try Zapier support for Taxjar in its Beta form.
Avalara and Vertex are services that stand out among the most significant competitors. However, if you do a little bit of research, you’ll see the kind of consensus that Taxjar has the upper hand.
For example, when it comes to Ease of Use, Taxjar is mostly better than Avalara. Its capacity to import data with a few clicks instead of having to type them and then reform files is essential. Compared with Vertex, it seems to offer a slightly easier use, though not very noticeable.
On Customer Service, one of TaxJar’s main focus of advertisement, the same applies. While the 3 offer 1-1 communication, documents, webinars, and live programs. Taxjar quality excels Avalara and has a slight advantage over Vertex as well again. But we should give Avalara a bit of credit here, as it stands out for its in-person consultation and training. Though it doesn’t mean that it is better per se, it shows it has a little extra, that is mostly it.
On available features, the three offer an extensive and competitive toolset. Here, we notice an exception with TaxJar because it lacks two essential features. Vertex and Avalara both include value-added and consumer use tax calculations. As you can tell, Taxjar falls a bit short here. It is up to you to say how important those features are.
On Prices, the problem with Avalara and Vertex is there is no price information on their websites. So, you will have to contact them to receive a quote and then be able to compare. Additionally, they charged fees for an annual license, activation, and hidden fees. All of this makes it difficult to compare them.
However, from the information on the web, we can mention three things.
- Between the three services, the prices for using them are competitive.
- But transactional fees seem to be much lower for TaxJar.
- Customers report a higher value for money for Taxjar (Avala is in the lowest position)
We recommend making a sound decision before receiving the detailed quotes.
On customer satisfaction based on reviews retrieved from Capterra, we can say that:
- Avalar has more revies and has a bit slower rating
- Vertex and Taxjar are almost equaled in the number of reviews and ratings.
Lastly, note that the alleged recommended number of customers for Avala and Taxjar is up to 500. In comparison, Vetex is 1-1000. This information is not very clear because it doesn’t come from official sources. So, take it with a pinch of salt and but use it to remember checking Vedex as well, significantly if you exceed that number.
Is TaxJar Worth It?
Taxjar offers superior ease of use, reported higher value for money. Also, comprehensive customer service will save you possible delays or penalties. And while it lacks some features, it competes well with the rest in other areas.
For all these reasons, we can say with certainty that TaxJar is absolutely worth it.
We hope you found this article insightful and useful. We try to be as impartial as possible in our work.
As always, thank you for reading.
Where can I start with Taxjar
You can start here.