One question we sometimes get when talking to potential customers is “What’s the difference between TaxJar and Quickbooks?”
The short answer is that Quickbooks is a full-service bookkeeping app while TaxJar focuses solely on sales tax and greatly expands on what Quickbooks can do when it comes to sales tax reporting and filing.
Let’s dig in.
What TaxJar Does that Quickbooks Doesn’t
Quickbooks will show you how much sales tax your business has collected. Depending on how you use Quickbooks, you may see this on a transaction level (i.e. how much sales tax you collected on each individual sale) or in a lump sum over a time period.
While knowing how much sales tax you’ve collected is useful information, it’s only step one when it comes to filling out most state sales tax returns.
At filing time, most states require that you break out how much sales tax you collected by county, city and other special taxing district.
Here’s an example of the difference between TaxJar and Quickbooks:
Here’s an example of a TaxJar state report overview (you can click each heading to dig deeper):
Each state’s sales tax returns are different, and TaxJar provides you with the information you need to fill out the sales tax return in each and every state.
TaxJar Integrates with your Sales Channels
TaxJar connects directly with the online shopping carts and marketplaces on which you sell. You can see a full list of TaxJar’s direction integrations here. Sales tax data straight from the shopping cart or online marketplace gives us all the information we need to know to help you report, file and remit sales tax. This includes:
- Sale amount
- Amount of sales tax collected
- Ship from address
- Ship to address
With that info we’re not only able to give you all the info you need to get your sales tax filed the right way every time, but we’re also able to use our “Expected Sales Tax Due” report to give you tips and suggestions if something with your sales tax collection seems off. This feature helps you discover small problems with your sales tax collection before they become major fires.
TaxJar Will AutoFile your Sales Tax Returns
TaxJar will also automatically file your sales tax returns in most states (with the rest coming very soon!) AutoFile is the true end-to-end sales tax solution for small businesses who never want to deal with sales tax again. Currently TaxJar AutoFiles in these states:
Will TaxJar ever integrate with Quickbooks?
We don’t currently have a direct integration to Quickbooks, we work from customer requests. If you rely on Quickbooks and would still like for us to build a direct integration you can make a request by emailing us at email@example.com.
Have questions or something to say about the difference between TaxJar and Quickbooks? Start the conversation in the comments!