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Which is better TaxJar or Avalara?

When it comes to choosing between TaxJar and Avalara, the answer largely depends on your business needs and preferences.

If you are a small or medium-sized business looking for an affordable solution, TaxJar might be a better bet. It is a simpler and more cost-effective software solution that provides accurate sales tax rates for every location in which your business has a tax nexus. It also offers sales tax calculations, reporting, and filing features that can help automate your tax compliance responsibilities.

On the other hand, Avalara is best suited for larger businesses with complex tax needs. It offers a more comprehensive and sophisticated platform that can handle more advanced tax rules and exceptions, including cross-border transactions and special tax classifications. While Avalara is generally more expensive than TaxJar, it may be worth the investment for businesses with more complicated tax requirements.

When assessing which option is right for your business, it’s important to consider factors like the size of your business, the complexity of your taxes, and your budget. You should also look for user reviews, feature comparisons, and customer support options. the best decision will depend on your specific needs and goals.

How many customers does TaxJar have?

TaxJar is a well-known leading technology company assisting businesses in automated sales tax reporting and filing. The company has been in operation since 2013 and has gained a considerable customer base since then. TaxJar has been successful in innovating sales tax compliance solutions and providing top-notch customer service, which has resulted in many satisfied customers.

As per various online reviews and reports, TaxJar has thousands of customers, including e-commerce retailers, online marketplaces, and accounting professionals, who rely on TaxJar’s services to automate and simplify their sales tax compliance process. However, the actual number of customers that TaxJar has may vary and change over time as the company continues to grow and expand its services to new regions and industries.

What is TaxJar used for?

TaxJar is a powerful and comprehensive online sales tax management solution that is designed to help businesses of all sizes automate the entire sales tax process. It simplifies the complex task of calculating, collecting, reporting and filing state and local sales taxes, saving businesses valuable time and resources that would have otherwise been spent on manual processes.

The software integrates seamlessly with popular e-commerce platforms such as Shopify, Magento, WooCommerce, BigCommerce and Amazon, making it easy for online retailers to manage sales tax compliance for their online stores. With TaxJar, businesses can accurately and efficiently calculate tax rates based on the location, product type, and sales volume, helping to ensure correct tax calculations and minimizing the risk of errors, fines or audits.

Additionally, TaxJar can help businesses keep track of frequently evolving sales tax laws across different states, ensuring that they remain fully compliant with changing regulations that can differ from one state to another. This allows businesses to focus on growing their business without worrying about the complexities of sales tax.

The platform also offers a host of additional features such as auto-filing, which simplifies the filing process by automatically filling out state sales tax forms and directly submitting them to state governments on behalf of the business.

Overall, TaxJar is a valuable, reliable and cost-effective solution that helps businesses simplify the sales tax management process, reduce the risk of errors and save time and resources. It is an essential tool for businesses selling online and is highly recommended for businesses looking to streamline their sales tax compliance process.

Does Avalara remit taxes?

Yes, Avalara is a software platform that offers comprehensive tax compliance and automation solutions. One of the primary functions of the platform is to remit taxes on behalf of businesses to relevant tax authorities.

Tax remittance can be a complex and time-consuming process for businesses, especially those operating within multiple tax jurisdictions. Avalara helps to simplify the process by automating tax calculation and remittance, allowing businesses to focus on their core functions.

Once the tax obligations have been calculated, Avalara can transfer funds directly to the relevant tax authorities or facilitate payment through third-party payment providers. Businesses are also provided with detailed reports and information, allowing them to monitor their tax obligations and ensure compliance with local tax regulations.

In addition to remitting taxes, Avalara offers a range of other tax compliance services such as tax rate determination, exemption certificate management, and filing of tax returns. This comprehensive suite of services helps businesses to manage their tax obligations with ease and accuracy, reducing the risk of fines or penalties for non-compliance.

Overall, Avalara’s tax remittance services are an essential tool for businesses looking to streamline their tax compliance processes and ensure they remain in good standing with local tax authorities.

Does TaxJar work with Square?

Yes, TaxJar does work with Square.

Square is a popular point-of-sale (POS) system for small businesses that allows them to manage their sales, inventory, customer data, and payments. TaxJar is a cloud-based software that simplifies sales tax management for businesses by automating the process of calculating and filing sales tax returns.

TaxJar integrates seamlessly with Square, making it easier for Square merchants to calculate and collect sales tax and file their returns. With the TaxJar-Square integration, sales tax is automatically calculated and added to the total amount of each transaction. This eliminates the need for merchants to manually calculate sales tax rates for each transaction, reducing the likelihood of errors.

In addition to automating sales tax calculations, TaxJar also provides merchants with detailed reports that can be used for tax filing. These reports show the amount of sales tax collected, broken down by state and jurisdiction, as well as any exemptions or exclusions that apply.

One of the biggest benefits of using TaxJar with Square is that it simplifies the process of filing sales tax returns. TaxJar automatically generates state-specific sales tax return forms, making it easier for merchants to file their returns accurately and on time. TaxJar also supports e-filing in many states, which speeds up the process even further.

Taxjar is a great tool for Square merchants looking to simplify their sales tax management. Its integration with Square ensures accurate sales tax calculations and easier tax filing, allowing merchants to focus on growing their business rather than dealing with complicated tax laws.

Is TaxJar owned by Stripe?

No, TaxJar is not owned by Stripe. While Stripe and TaxJar do have a partnership, this does not equate to ownership. TaxJar is an independent company that provides sales tax automation solutions for online businesses, including tax calculations, reporting, and filing. Stripe, on the other hand, is a payment processing company that allows businesses to accept and manage online payments.

Stripe has integrated TaxJar’s API (Application Programming Interface) into their platform to provide sales tax calculations and reporting for their customers. This integration allows Stripe customers to automate sales tax calculations and ensures that they are compliant with sales tax laws in various states.

Although Stripe and TaxJar work together, neither company owns the other. Both companies operate independently and have their own team of experts, products, and services. The fact that they are complementary companies in the e-commerce space is likely what has led to their partnership and collaboration.

Overall, while TaxJar and Stripe may have a close relationship that benefits their shared customers, it is important to note that they are separate entities and have their own distinct business models and operations.

Does TaxJar file your taxes?

TaxJar is an accounting software that helps businesses with sales tax compliance. With the help of TaxJar, businesses can calculate, collect, report, and file taxes in an efficient way. TaxJar provides a range of tools and features that enable businesses to automate the tax filing process, including tax rate lookup, automatic tax calculations, and filing reminders.

However, TaxJar does not file taxes on behalf of its users. It is the responsibility of the business to file its own taxes with the relevant tax authorities. TaxJar can provide users with the necessary information and documentation needed for their tax filings, such as sales tax reports and detailed transaction data, so that they can easily submit their tax returns.

The process of filing taxes varies depending on the type of tax, the jurisdiction, and the regulatory requirements. TaxJar can provide guidance and support to help businesses navigate the tax filing process, but the actual filing of taxes is the responsibility of the business.

Taxjar is a valuable tool for businesses to manage their sales tax compliance, but it does not file taxes on behalf of its users. Businesses are responsible for reviewing and submitting their own tax returns to the relevant tax authorities.

How much did TaxJar sell for?

They have gained a significant following among e-commerce business owners due to their easy-to-use platform and comprehensive tools that make it simple to manage and comply with sales tax requirements across different states.

In recent years, TaxJar has raised various rounds of venture capital funding to support its growth and expansion plans. However, the company has not publicly disclosed any information on its sale or acquisition as of this writing. Given the company’s high user engagement and strong revenue growth, it is likely that TaxJar’s sale would have been a significant transaction.

However, without any official announcement or confirmation, it is impossible to provide an exact figure for the sale price.

How do I talk to a human at TaxJar?

When it comes to dealing with taxes, it’s important to have a clear understanding of what you need to do and how to do it. And while many companies have provided software or digital platforms to simplify tax processes, sometimes you might need to speak with a human being for specific questions or issues you may face.

If you’re dealing with taxes and need assistance from TaxJar, there are a few steps you can take to speak with a human.

Firstly, visit the TaxJar website and navigate to the “Contact Us” page. On this page, you will see various contact options, such as email and phone numbers. You can either send an email directly to their support team or choose to give them a call to speak directly to a representative.

If you choose to call, have your TaxJar account information on hand, such as your account number, email address, and phone number. This information is important because it will allow the TaxJar representative to pull up your account information and provide faster assistance. When you call, you might be placed on a brief hold until a representative is available to take your call, so be patient.

You can also reach TaxJar through their social media channels. They have active accounts on Twitter and Facebook, so you can send them a message through these platforms to get in touch with a representative.

Before speaking to a TaxJar representative, make sure to have a clear understanding of the issue or question you have, along with any relevant information, such as account history, receipts or invoices, or other pertinent documentation. Providing this information in advance will help TaxJar representatives resolve your issue more quickly and effectively.

In addition, if your question or issue is more complex or requires more extensive research, TaxJar may direct you to their One-to-One Training service, which provides a more personalized and in-depth consultation on a per-hour basis.

Overall, speaking to a human at TaxJar can help ensure that you’re getting the most out of the tax processing service they provide, whether it’s to resolve an issue, understand a particular tax law, or improve your overall tax filing process. With a little preparation and patience, you can easily connect with a TaxJar representative to assist you with your tax-related matters.

Is TaxJar global?

TaxJar is not completely global, as it only offers sales tax automation and compliance services for businesses that have a physical presence in the United States. This means that if your business is based in the US or has a nexus, such as employees or inventory, in US states that impose a sales tax, then TaxJar can help you determine what taxes you need to collect, prepare and file your filings, and remit payments to the appropriate tax authorities.

Although TaxJar does not offer its services globally, it does provide some tools and resources for businesses that sell internationally. They offer a free tax calculation tool that businesses can use to determine the proper VAT or GST to charge for each country they sell in. Additionally, they offer country-specific guides that provide valuable insight into each country’s tax requirements, helping businesses stay compliant with local regulations.

Overall, TaxJar is a valuable resource for US-based businesses looking to streamline their sales tax compliance processes. While it does not offer global services, it still offers tools and resources that can help businesses navigate the complexities of international tax compliance.

Why did Stripe acquire TaxJar?

Stripe’s acquisition of TaxJar can be primarily attributed to the rising trend of e-commerce and online business transactions. With the boom in the online marketplace, more and more small businesses and merchants are shifting their operations online. As a result, taxation and compliance regulations have become increasingly complex and are creating a major challenge for business owners.

Recognizing this challenge, Stripe has been consistently expanding their suite of products and services to support online businesses. With TaxJar’s specialized expertise in tax automation and compliance, Stripe aims to offer its customers an end-to-end solution for managing their financial affairs seamlessly.

Additionally, TaxJar offers its services across multiple states, making it a perfect fit for Stripe’s multinational customer base. By acquiring TaxJar, Stripe aims to minimize the complexities associated with tax-related operations for small businesses while offering a comprehensive solution that can manage everything from calculating tax rates, to filing returns efficiently.

Furthermore, with TaxJar’s advanced technology and automation capabilities, Stripe can now offer real-time tax calculations, giving its customers greater transparency and control over their financial processes. This, in turn, can help businesses stay compliant with regulatory requirements, minimize errors, and reduce the risk of fines and penalties.

Stripe’S acquisition of TaxJar is a strategic move that aligns with Stripe’s goal of enabling small and medium-sized businesses to compete in the online marketplace. With TaxJar’s capabilities in tax automation and compliance, Stripe can now offer better financial solutions to its customers, making it easier for them to run their businesses.

Overall, the acquisition of TaxJar demonstrates Stripe’s commitment to delivering end-to-end services that simplify the complex world of online payments and financial management.

How does TaxJar works?

TaxJar is an automated sales tax tracking, reporting and filing software designed to help businesses manage their sales tax obligations with ease. TaxJar does this through a simple and user-friendly platform that can be integrated with a variety of existing e-commerce technology, such as accounting and shopping cart systems.

The way TaxJar works is quite simple. First, businesses connect their e-commerce platform to the TaxJar platform. This can be done by linking the business’s sales channels such as Amazon, Shopify, eBay, etc., to their TaxJar account. Once connected, TaxJar automatically imports all sales transactions and shipping data from these channels and organizes them into a single, easy-to-use dashboard.

TaxJar then uses this data to calculate the exact amount of sales tax owed by the business in each state or jurisdiction where they have a sales tax obligation. TaxJar applies the appropriate rates and rules to these transactions, including state-specific tax exemptions, compound rates, and more. This way, the business can be sure they are collecting the correct amount of tax, without having to worry about the complexities of sales tax compliance.

Once these calculations are complete, TaxJar generates automated sales tax reports, including a breakdown of sales tax collected by state and jurisdiction. These reports can be used by businesses to reconcile their tax filings, plan for future growth, and evaluate their overall sales tax compliance strategy.

Finally, TaxJar also offers a variety of filing options to help businesses stay compliant. TaxJar can file sales tax returns on the business’s behalf in more than 12,000 tax jurisdictions across the United States. Alternatively, businesses can use the TaxJar API to automatically submit their sales tax data to third-party filing services or manually file their returns using the information provided in their TaxJar dashboard.

Taxjar works by automating the process of calculating, tracking, and filing sales tax for businesses. By using advanced technology, TaxJar simplifies the complex and ever-changing world of sales tax compliance, allowing businesses to focus on what they do best: growing their business.

How do I cancel TaxJar?

To cancel your TaxJar subscription, you can follow the simple steps mentioned below:

Step 1: Log in to your TaxJar account

To cancel your subscription, you first need to log in to your TaxJar account using the credentials that you used to sign up for it.

Step 2: Navigate your way to the ‘Subscription’ tab

After logging in, navigate your way to the ‘Subscription’ tab, which you can find on the left panel of your account dashboard. Here, you will be able to see all the details of your current subscription, including its plan, payment details, and billing history.

Step 3: Click on ‘Cancel Subscription’

Once you are on the ‘Subscription’ page, you will see the ‘Cancel Subscription’ button, which is located at the bottom of the page. After clicking on it, a confirmation window will pop up, asking you to confirm your decision to cancel your subscription.

Step 4: Confirm your cancellation

Once you have clicked on the ‘Cancel Subscription’ button, the confirmation window will ask you to confirm your action. You can either click on the ‘Yes’ button to confirm your cancellation or the ‘No’ button to cancel the cancellation process.

Step 5: Verify your cancellation

After clicking on the ‘Yes’ button, you will receive an email confirmation from TaxJar verifying that your subscription has been cancelled. This email will include important details such as the date of your cancellation and the amount of time left until your subscription expires.

Cancelling your TaxJar subscription is easy and can be done by following the simple steps mentioned above. However, if you face any issues during the cancellation process or have any questions about your subscription, you can always reach out to TaxJar’s customer support team for assistance.

How do I file taxes with TaxJar?

Filing taxes can be a tedious and time-consuming process, but with TaxJar, it becomes easy and manageable. TaxJar is an automated online tax solution software that helps businesses file their sales tax returns. If you want to file taxes using TaxJar, here are some steps to follow:

1. Set up your TaxJar account

The first step is to set up your TaxJar account. This involves entering your business information, including your sales tax nexus states, and connecting your selling channels, such as Amazon or Shopify. Once these are set up, TaxJar will automatically track and calculate the sales tax owed in each state.

2. Connect your TaxJar account to your business systems

To get the most out of TaxJar, you should connect it to all of your business systems to automate the sales tax collection process. This includes your e-commerce platforms, accounting and invoicing software, and payment gateways. This will ensure that all your sales data is accurately tracked and captured.

3. Review your sales tax data

Once your TaxJar account has been set up and connected, you can start reviewing your sales tax data. TaxJar will show you a breakdown of your sales by state and provide you with a summary of the sales tax you need to collect and remit. This information can be accessed through the dashboard.

4. File your sales tax returns

After reviewing your sales tax data, you can file your tax returns through your TaxJar account. TaxJar will automatically generate the tax forms for each state where you have nexus and provide you with step-by-step instructions on how to file. You may also set up AutoFile, which will automatically submit your sales tax returns to the states in which you owe taxes.

This feature saves you time and guarantees your compliance.

Filing taxes with TaxJar involves setting up an account, connecting to your business systems, reviewing sales tax data, and then filing your returns. TaxJar makes the process quick and easy, while providing you with accurate data to ensure compliance. With TaxJar, you can focus on growing your business, rather than worrying about tax compliance.

Is TaxJar accurate?

TaxJar is a sales tax automation software that provides businesses with a range of features to help them manage their sales tax compliance obligations. The platform uses real-time sales tax data to provide businesses with accurate sales tax calculations, return filing, and reporting solutions across multiple sales channels.

The accuracy of TaxJar is dependent on several factors, such as the completeness and accuracy of the data input into the system. TaxJar uses a mapping feature to ensure that tax rates are calculated based on the most up-to-date data available. This can assist businesses in avoiding common sales tax errors, such as charging the wrong tax rate, using outdated tax codes or exempting taxable items incorrectly.

However, accuracy can be impacted by factors such as changes in state or federal tax rates, exemptions or tax laws that haven’t been updated in their systems. In such cases, it is the responsibility of the user to maintain accurate records, input correct data, and keep up with these changes to ensure that TaxJar functions correctly.

Overall, TaxJar provides a reliable and accurate solution to businesses seeking to automate their sales tax compliance requirements. By automating these processes, it helps businesses avoid costly fines or penalties due to non-compliance with the complex and often-changing sales tax laws. However, as with any software, it is still important for the user to take measures to input accurate data to ensure that the calculations, returns filing, and reporting are accurate.

Resources

  1. Avalara vs TaxJar: Who’s the Winner? – Basis 365 Accounting
  2. Avalara vs TaxJar Comparison – GetApp
  3. TaxJar vs. Avalara: Which sales tax software is right for me?
  4. Taxjar vs Avalara Compared – The Digital Merchant
  5. Avalara vs TaxJar 2023 – Capterra