You have been using QuickBooks for your accounting needs for a long time. But did you know that you can integrate it with TaxJar? Well, this is quite a game-changer because combining these tools to work together can save you tons of time, energy, and also money.
TaxJar is a sales tax tool that automates most of the tasks to make sure you will not need to spend much of your time trying to do it manually. If you combine the two tools, the process of managing sales taxes becomes extremely easy.
It will calculate taxes, offer accurate tax reports, and make sure you comply with the tax guidelines. This article aims to give you a quick way you use TaxJar and QuickBooks to simplify how you manage your sales taxes.
Understanding TaxJar and QuickBooks
Here is a quick look at each of these tools so that you may understand them better:
TaxJar Overview
TaxJar is a tool that helps small or even established businesses automate various tasks of tax management. It is a cloud-based service that can calculate taxes and provide reports.
This means TaxJar can help you stay compliant with the tax requirements in your state without needing much of your manual intervention. It can offer:
- Sales tax calculations
- Tax reports
- Automatic tax filing
TaxJar can achieve all of these without making any mistakes. This means it can do more to help your business achieve its goals if you integrate it with QuickBooks.
QuickBooks Overview
QuickBooks is a great tool for all your accounting needs. It is a tool that can be used by both small and established businesses. Using this tool, these are the services you can get:
- Track expenses.
- Get financial reports.
- Manage your payroll.
- Generate invoices
One of the aspects you will like about this tool is its user-friendly interface. You will have access to all its features once you log in to your account.
The Integration Process
Here is a quick look at how you can integrate these two services:
Prerequisites
Right before you start integrating these tools, make sure you have the following in place:
- You should have an account on each of them
- You can access the admin features of the tools
- You know some of the tax requirements in your state
Step-by-Step Connection Process
Follow these steps to connect the two services:
- Log into your TaxJar account and head over to the integrations tab.
- Tap on QuickBooks to choose it.
- Verify the connection by granting them the permission to connect.
- You can now link your sales accounts to the two tools.
- Allow TaxJar to import some of the sales data from QuickBooks so that it can provide you with accurate services.
- You can now test if the two tools work well.
Key Features of the Integration
After connecting the two tools, they will offer:
- Automatic syncing of sales data.
- Tax calculation.
- Automatic tax filings.
- Error alerts.
Benefits for Businesses
As a business owner, these are the benefits you can take advantage of after connecting TaxJar with QuickBooks:
- The combo offers quick tax calculations which frees up your time.
- There will be no errors because the process is automated and accurate.
- You can scale your business without worries of increasing tax compliance needs.
- You are sure all tax needs will be met.
Common Challenges and Solutions
Here are some of the problems you may come across after connecting the two tools:
- If done incorrectly, the combination might give inaccurate reports or tax calculations.
- Connecting the two services may not be easy if you are doing it for the first time.
- You may have to manually update the tax settings on your TaxJar so that you can absorb new tax laws.
Alternative Solutions
If both of these tools fail to function as you anticipated, you are free to use other tax software options. Here are the other options you can go for:
QuickBooks online tool
QuickBooks has an inbuilt tool that you can use to manage your sales tax. However, this tool can only serve you well if you have simple tax needs.
Avalara
You can use Avalara to manage your taxes and remain compliant as it offers great features and also integrates with QuickBooks.
Taxify
Smaller businesses can use Taxify because it is suitable for handling small tax compliance needs.
Conclusion
You can connect TaxJar with QuickBooks so that you can enjoy its benefits such as automatic filing of tax returns.
You will not have tax errors because the tools work as one to make sure everything is accurate and your business remains compliant with all tax guidelines in your state.