Sales tax can be time-consuming and stressful!
Tax filings are time-consuming when you sell taxable products. If you’ve been selling something online for a while, you’re probably aware of how difficult it can be. You might come across different tax compliance software, and you don’t succeed in choosing between Quaderno vs Taxjar.
Sales tax is filed more frequently than income tax and isn’t regulated federally. This means you need to take the time and effort to research the specific regulations imposed in the state you’re operating in.
So, why’s sales tax so complicated? Here are a few reasons:
- Depending on your state, companies must base their sales tax on the items shipped from. Or where the product is shipped to.
- In some states, you need to fill out the sales tax form every six months; in others, it’s every three months or once a year. This is why it’s essential to know the filing frequency for each state.
- In addition, you may need to report your quarterly filings separately in each state. Some states may allow you to report on your annual financials if they are filed by a different date than the due date for the filings.
- If their sales tax balance in a state is significant enough, larger companies may be required to file sales tax in multiple states.
- When paying back tax to the state, the sales tax that firms charge clients must be decomposed into precise sums. This can be difficult to comprehend and time-consuming.
- Sometimes, missing a sales tax filing deadline can be a big deal (and cost you a lot), even if your business has no sales tax to remit!
- Many e-commerce platforms will allow you to calculate the sales tax you’ll need to collect from customers. But they won’t automatically collect it for you. There are other ways to solve the problem than to clarify who is responsible for what.
As you can see, collecting sales tax is not easy, and these are just a few of the challenges that companies encounter when dealing with this area of business. It’s no surprise, then, that business owners all around the country are looking for a solution.
Why choose tax compliance software for online businesses?
Whether you have a business or are self-employed, filing your taxes can be a hassle. This is why many small companies rely on software to handle the heavy lifting.
Small businesses, including eCommerce stores, can find it challenging to manage their tax liabilities, mainly if they’re based in other countries. Home-based businesses that provide services, but receive payments online, can find it a problem because of the location of their customers.
Do you know what taxes apply to your customer? Where is the customer in their country? What region are they in? What are the tax rates there?
Collecting taxes is not easy as 1, 2, or 3, and there’s always a lot of paperwork involved and more than a few hours of your time. Once you find the right software for connecting with the right income tax automation, such as Quaderno or TaxJar, it will put your connection into auto mode.
That means that when you have any issue regarding income tax automation, you will not have to wait for help from anyone, and you will always have assistance.
Collecting your taxes without misspeaking and doing essential tasks in your business, and making the correct mistakes or charging the wrong tax, are things that all businesses need to worry about.
Quaderno vs TaxJar: which one is a better all-in-one tax compliance solution?
These sales tax tools help small businesses manage sales tax efficiently. They are among the top products on the market, and we evaluated them for the value they can offer your business.
It’s always wise to compare to the competition to figure out what it can do better.
So, we decided to write this article to help you select which solution will best fit your situation. You’ll find out which one is right for you and how you can get started with that solution in just 5 minutes!
What is TaxJar?
In short, TaxJar is an online sales tax platform that makes life easy for entrepreneurs by providing them with various tools and educational resources to help them manage their sales taxes.
This tool automates handling sales tax and transforms it into an easy and instant tax report, specifically by helping you file your taxes correctly and on time for the right states.
TaxJar can automatically file your taxes for you (if you choose the option). You don’t need to know how to file taxes to get the highest benefits. TaxJar takes care of the back office of your Amazon / eBay / Etsy or whatever business. It collects data from your eCommerce platform and organizes it for you.
If you want to figure out how much to pay in taxes, you’ve got to do a little work. Whether you’re selling from the United States or abroad, you must configure your online store (via Shopify, Amazon, etc.) to properly charge taxes in all the various states and countries where you sell.
TaxJar offers 13 integrations with e-Commerce platforms and payment processors. If you can’t find the proper integration, you can always integrate with Zapier. This platform connects your favorite apps and platforms and automates the “behind-the-scenes” stuff for you.
You can integrate TaxJar’s SmartCalcs API into your website, which means your customers won’t have to worry about taxes, they’ll just input the information, and TaxJar will do all the hard work.
The SmartCalcs API supports sales tax rates in the United States, Canada, Australia, and the European Union. Manual tax rate configuration is only available to sellers in Australia or the United States.
If you’re selling internationally, this means that you’re in a bit of a pickle…
What is Quaderno?
Quaderno is an affordable, easy-to-use software solution for small business owners who need help complying with state and local taxes.
They help SMBs, SaaS, digital entrepreneurs, online stores, freelancers, and enterprise CFOs manage their sales tax threshold in all countries around the world efficiently. It makes it easy for them to sell more without dealing with complicated rules and regulations.
You can read my full Quaderno review here!
Taxjar Review: features and services
If you’ve ever wondered about what TaxJar offers, this section will give you an idea of what it can do for you.
Filing services, the big difference with Quaderno
TaxJar is a user-friendly way to ensure you’re always on top of things. Whether you need help with your sales tax filings or just want to know if you have to pay sales tax, TaxJar can handle both.
When you have to file your sales tax returns, TaxJar will show you how to do it. It’ll explain everything from what you need to do to where you can get it to help you file. It can also offer all of the information you need to submit state forms.
It’s your responsibility to pay attention to details and make every statement independently. You also have to make sure that you comply with all relevant sales tax laws.
There’s no need to manually send any paper or online forms if you use TaxJar’s AutoFile service to complete your sales tax filing. TaxJar will automatically help you complete your taxes form, saving you time and money. You don’t have to know anything about taxes — they do it all for you.
By using TaxJar’s AutoFile service, you don’t have to worry about any of these concerns – which means that you can concentrate on growing your business without the distraction of worrying about your taxes.
AutoFile is available for all US States. However, because this service is not included in the TaxJar monthly plan, there is an extra cost to access it (only $25). It’s well worth it if you have more than one state business. This is because a company only uses AutoFile when it’s time to submit their tax return, which happens at different times throughout the year.
You can use AutoFile simply by clicking a button that appears under your state name in the dashboard. When the filing period for that state opens, this becomes available.
If you sell products on different channels, it’s essential to keep things organized and straightforward. The dashboard provides various data and reporting and enables users to drill down into key metrics across sales channels.
Gone are the days when you had to crunch numbers and transfer data to a single platform. You can now store and manage your data from one dashboard to manage your sales tax obligations, including returns and filings. Just integrate your online stores, and they will handle the data for you.
You can easily integrate Amazon Seller, Etsy, Shopify, WooCommerce, eBay, Big Commerce, Stripe, and PayPal…
TaxJar work in collaboration with your bookkeeper
Even if you currently work with a bookkeeper, it is a useful tool to simplify the task. It combines all of your sales reports into one place and handles tax submission, allowing bookkeepers to interact with customers more efficiently.
Incredible resources about sales taxes
TaxJar makes tax laws easy to understand and makes taxes easy for you to pay. It’s always good to know as much as you can. When you have all the information, you’ll be in a better position to make the best tax-related decisions for your business.
TaxJar provides many free resources to help you understand your sales tax obligation well.
Some of TaxJar’s most helpful information are provided below. These are, in our opinion, well worth your time:
- Their blog
- Their sales tax webinars
- The sales tax calculation
- The ‘Getting Started’ guides.
Breathtaking customer service
TaxJar’s customer service is well acclaimed, and it is something the company delights in. They can be reached by phone for free or by email, with a 24-hour response time guarantee (at the very most).
The Starter Plan is an excellent option for small business owners who want to take their bookkeeping to the next level. Starting at just $19 per month (for 200 orders per month), this solution is geared towards smaller businesses, and it helps them automate the sales tax process without over-engineering.
This Basic Plan includes email support (with an actual human, not a bot), one-click integrations, simple CSV import, sales tax reporting, 4 Free AutoFiles per year, product tax code catalog, and AI-driven product taxability recommendations.
To help entrepreneurs save time and money, TaxJar offers Professional Plan starting at $99 per month (for 200 orders per month). This is everything that it provides in the Basic Plan, in addition to prioritized 24/7 phone support, dedicated account management, TaxJar API access & integrations, advanced CSV import, and 12 free AutoFiles per year.
You can also create multiple user accounts and assign specific roles to each user so that your team can access TaxJar, and it’s easy to see all of their transactions and changes at a glance. This plan also gives you access to technical features, including a 99.99 % uptime guarantee, address validation, and the developer sandbox.
If you have a real particular need, TaxJar also offers a Premium Plan. To receive a quote for this plan, contact TaxJar directly, as they customize these plans to meet the specific needs of your business.
TaxJar offers a 30-day money-back guarantee if you’re not sure if it’s an adequate solution for you. Take advantage of this opportunity to see if these features match your requirements.
Visit TaxJar’s price section on their website for the most up-to-date pricing.
Taxjar Pros & Cons
✅ TaxJar’s AutoFile service means that you’ll never forget to file in time or file only part of the return in a state. It automatically sends the full return to the IRS when complete, so you never miss a deadline.
✅ AutoFile is available in all US states and is accepted in all 50 states and DC.
✅ TaxJar helps you understand your sales tax so that you pay no more than you have to. It then automatically calculates your returns for you, all you need to do is approve the report, and it’s ready for your accountant to review and file.
✅ Excellent customer service
✅ There’s a 30-day free trial available
❌ If you’ve been following this post about AutoFill, you’re aware that it’s a costly option that only enables sales tax returns for customers in the United States.
❌ The software is evolving and doesn’t always get local legislation 100% right.
❌ The current pricing plans lack transparency and require customers with more advanced needs to get in touch.
❌ There are no automatic tax invoices with TaxJar. You need to produce an accurate, compliant invoice for your buyer. When customers make sales, you are responsible for creating and sending them a compliant tax invoice according to local tax law. The invoice needs to have all the customer information.
Quaderno Review: features and services
As mentioned above, you can find our complete Quaderno Review here!
Automatic tax invoice
They offer currency exchange based on official rates, and their rates are always up-to-date. Your customers will love receiving automatic, 100% customizable invoices in every language.
Quaderno Checkout is a seamless payment option that will allow you to collect payments on your website. It works seamlessly with PayPal and Stripe and comes with no setup fee.
Tax preparation within minutes
In one click, prepare your tax returns with accuracy and stay tax compliant when filing with your country. With Quaderno, you can collect US Sales tax, VAT, and GST, among other countries.
Tax workflow automation
Automate your payment workflow, so you don’t have to miss a beat. With Payment Services, you can automate your payment workflow: send tax receipts, refund credits to customers, so your customers don’t have to wait for you to submit their returns manually. This software helps your customers view their invoices and billing information at all times.
Tax automation group
Local tax law compliant with local tax laws in multiple countries and multi-currency. Quaderno’s information is accurate and up to date, and it includes tax rules in the United States, Canada, Australia, New Zealand, the European Union, and Singapore. You will get the latest updates on countries that change their tax threshold for the type of business you do.
Tax automation software
With Quaderno’s new tax reporting solution, you’ll be able to get your revenue reports by connecting all your other payment methods with the software and receive real-time insights into your revenue in one dashboard.
One-click integrations enable perfect relationships between Quaderno and your favorite applications. You can integrate Quaderno with over 20 different software like Amazon, Shopify, WooCommerce, Stripe, PayPal, Clickfunnels…
All Plans Include:
- Automatic tax receipts
- Worldwide tax compliance
- Unlimited account users
- International tax alerts
- First-class customer support
Streamline your business financial processes and stay compliant with tax laws with Quaderno. Plus, you can easily create and send invoices, track expenses, and calculate taxes – all in one place!
Quaderno vs Taxjar: Let’s wrap up!
Calculating and filing your sales tax, including those in each state you conduct business, is a task no one would want to avoid. With TaxJar or Quaderno, you can do it with ease.
These are great tools for both large and smaller businesses. Their flexibility and easy-to-use interface make it very easy for all businesses to manage sales tax, which is a big issue today for all businesses.
The easiest way to outline TaxJar is that it’s a wonderful tool for tax compliance if you need someone that can submit sales tax returns in several states. It’s a marketer’s dream to use this tool, and you can streamline the tax filing process for your business.
On the other hand, Quaderno seems more accurate and manages more country taxes, and it’ll help you stay on track with all your submission dates and requirements. I’m sure most people would prefer to have an accountant do their taxes, especially if it’s a complex situation.
If you just need to register sales taxes in a country with particular laws, you may find that you can do it quite quickly yourself after trying this process once or twice.
I’m sure this review will help you decide whether you should choose TaxJar vs Quaderno.