Note: This is a sponsored post in
collaboration with TaxJar.

When it comes to owning and operating your own business it’s
common knowledge that there’s always a lot to do and not enough
time in the day to get it done. As an ecommerce entrepreneur
either working solely on your business yourself, or maybe you
have a small team to help, time is of the essence and
minimizing the amount non-revenue generating tasks you need to
complete helps you to be both more productive and more
profitable day-to-day.

One of the tedious tasks you can take off your to-do list is
filing your sales tax returns. If you sell taxable products
such as clothing, furniture, toys, accessories, electronics,
etc, you’re likely very aware of the complicated process that
is filing sales tax returns. Not only is sales tax filed more
frequently than income tax (depending on the state it could be
monthly, quarterly, semi-annually or annually) but sales tax
also isn’t managed at the federal level so each state has its
own rules when it comes to what criteria each business needs to
meet.

Here are some examples of why sales tax criteria can be
complex:

Each state assigns businesses a filing frequency: annually,
semi-annually, quarterly or monthly.

Due dates for filings are also assigned by the state
(sometimes it’s the last day of the month, or it could be the
20th or the 25th, for example).

Some states require businesses to charge sales tax based on
where the item was shipped from, others require that the charge
is based on where items were shipped to.

Sales tax may have to be filed for multiple states by one
business, depending on where that business has “Nexus”. Nexus
means that a business has a significant enough presence in a
state to be required to collect sales tax. This “significant
presence” could be an office, a warehouse, an employee or even
an Amazon FBA warehouse. Each state’s rules for what determines
Nexus is different.

Each amount of sales tax a business charges their customer
needs to be broken down into tinier, more specific amounts when
remitting that tax back to the state, which can be confusing
and time consuming to figure out.

Missing a due date to file sales tax can result in penalty
fees, in some states up to $50, even if a business has no sales
tax to remit. If you’re late paying what you owe, you’ll also
be charged interest on top of penalties.

Most ecommerce platforms (such as Shopify, Amazon, eBay,
etc.) can help businesses calculate the amount of sales tax
they need to collect, but they cannot file sales tax on their
behalf.

This is where TaxJar comes in. In an effort
to streamline the sales tax process, help businesses become
more educated on sales tax, to understand the criteria by which
their business may need to comply, to help file sales tax on
time and for the right states, TaxJar has the ability to make
it a painless and automated process for a fair price.

What TaxJar Does

Simply, TaxJar makes it easy for businesses to file sales tax
returns on time, every time. Since sales tax can be complex and
each business’ situation will be different, it can be difficult
and time consuming for business owners to figure it out all on
their own. The main advantage to utilizing TaxJar’s service is
that they’re able to manage sales tax filings for businesses so
the owners and employees can focus on running and growing the
business, not doing tedious amounts of paperwork every time
sales tax is due.

Who TaxJar is For

TaxJar’s service is for every entrepreneur selling taxable
items in any state that’s interested in removing the hassle of
managing sales tax information and filing sales tax returns.
There’s no need to be overwhelmed by due dates, breaking down
collected sales tax into specific denominations, managing
different filing systems for the states you have nexus in, and
facing the possibility of paying late fees when TaxJar can
manage it all for you.

TaxJar’s Features & Services

Here’s what TaxJar has to offer businesses:

Filing Capabilities

Businesses are able to manage their sales tax filings in two
ways with TaxJar: either manually or through AutoFile.

If a business chooses to manage their sales tax filing manually
they’re able to connect all their sales platforms with TaxJar
and when it comes time to file sales tax returns, TaxJar is
able to instruct the business on how to do that. TaxJar is able
to provide all the necessary information to complete filings
for every state’s e-file website in minutes. Keep in mind that
when submitting sales tax returns manually it is up to the
business to make sure it’s filed on time and meets all
necessary criteria.

Alternatively, a business can choose to file their sales tax
return using TaxJar’s AutoFile service instead.
When a business uses AutoFile there’s no need to manually
submit any paper or online forms, TaxJar submits the filing on
behalf of the business. The main advantage to using AutoFile is
that a business won’t have to worry about due dates, submitting
returns on time for multiple due dates or submitting late
returns.

AutoFile is available for all US states, however, it is worth
noting that the fee for using the AutoFile service ($19.95) is
not included in the monthly TaxJar plan as each business will
be filing at different times of the year depending on their
state’s requirements. You’ll only pay the AutoFile fee when
TaxJar files your sales tax return.

Ideal for Multi-Sales Channel Businesses

TaxJar is an ideal solution for businesses who sell on multiple
sales channels because they’re able to compile sales data from
multiple sales channels into one accessible and manageable
dashboard. There’s no need for you to crunch numbers or
transfer any sales data over to TaxJar, simply integrate your
sales platforms with TaxJar (they have one-click integrations
for platforms such as Shopify, BigCommerce, Magento, WooCommerce, Amazon, eBay, Etsy, and more) and they’ll manage the data for
your sales tax returns.

CPA Friendly

Even if you already work with a Certified Professional
Accountant (CPA) for your business, TaxJar will still be an
asset. TaxJar claims that plenty of their customers work with
CPAs and their service makes CPA’s work easier by streamlining
sales data into one manageable place and filing on the
business’ behalf which helps save them time.

Never Miss a Due Date

When using TaxJar’s AutoFile service you’ll never have to keep
track of sales tax return due dates which can take place at
different times of the year, whether it’s monthly, quarterly,
semi-annually or annually and on different days, such as the
31st, 25th or 20th, for example. It’s a lot to remember,
especially if your business has nexus in multiple states and
has to file individual returns for each state, but you’ll never
have that worry on your mind when you use the AutoFile service.

Highly Rated Customer Service

TaxJar prides themselves on offering excellent customer service
which is ideal when managing your business’ sensitive data.
Available by phone through their toll-free number or via email
(with a promise to respond within 24 hours, though usually much
sooner) they’re easily reachable for any questions or concerns
you may have regarding your sales tax return.

Sales Tax Education

In an effort to help businesses better understand sales tax for
themselves, TaxJar provides a multitude of resources to help
their customers understand what it’s all about. Whether you
chose to manually file your sales tax or use their AutoFile
service, it’s helpful to understand sales tax and the process
of filing it so you can make the best decisions for your
business. Make use of TaxJar’s blog, their Sales Tax Webinars, Getting Started Guides, the Sales Tax Calculator, State Sales Tax Guides, and State Registrations to help better
understand sales tax.

Pros & Cons

TaxJar’s Pros

AutoFile is available in all US states

They simplify sales tax returns for businesses that sell on
multiple sales channels

You’ll never have to keep track of due dates and you’ll
never miss one

World class customer service

Plenty of education tools available for businesses

Easy integration with most ecommerce platforms

30 day free trial available on all plans and the first
AutoFile is free

TaxJar’s Cons

The AutoFile service requires another fee in addition to
the monthly TaxJar fee.

Previously TaxJar was only able to AutoFile for over half
of the US states, but as of July 1, 2017 AutoFile is available
in ALL states.

TaxJar only supports sales tax filings for US customers.

Pricing

TaxJar’s plans are available in 3 tiers: Basic,
Plus, Premier and Enterprise. The difference between each plan
is the amount of “transactions” supported per month which they
identify on their website as being an “order imported into
TaxJar with one or more line items.” Their plans are as
follows:

Basic: $19 and 1,000 transactions per month

Plus: $49 and 5,000 transactions per month

Premier: $99 and 10,000 transactions per month

Enterprise: starting at $199 and 50,000 transactions per
month

All Plans Include:

Automatic synchronization with all shopping carts and
ecommerce platforms

Sales tax reports for every state

Support for shipping taxability in different states

Support for origin-based and destination-based sales tax
sourcing

Support for businesses who sell on multiple platforms or in
multiple states

Detection of sales tax over-collection or under-collection

State and local level sales tax reports

Note: TaxJar offers a 30 day free trial for
all plans, there’s no setup or cancellation fees for any plan,
and should you choose to use the AutoFile service you’ll be
charged an additional fee of $19.95 every time TaxJar files on
your behalf.

Conclusion

For small and large businesses alike, TaxJar offers an
accessible, easily manageable and yet powerful service to help
take the burden of sales tax returns off your hands. Whether
you just need a little help to tie up some loose ends on your
returns, an all-in-one place to handle your sales data from
multiple platforms or if you want to spend as little time as
possible filing your sales tax returns, TaxJar’s service is
right for you. The features, services and education tools they
offer businesses provide a painless solution for sales taxes so
business owners and employees can spend less time managing
their sales taxes and more time on what helps their business
grow.