When small business owners begin looking for a way to handle sales tax compliance, two names usually pop up: Avalara and TaxJar. On the surface, these platforms promise effortless automation — instant calculations, quick filings, and compliance handled by a few clicks.

But here’s the uncomfortable truth: automation doesn’t equal protection. Relying on tools like Avalara and TaxJar might feel convenient — until the notices, audits, and penalties start rolling in.

This article isn’t just another feature-by-feature breakdown. We’ll show you why comparing Avalara and TaxJar misses the real point entirely, and why what your business actually needs is expert, human-led sales tax compliance — not software.

Avalara vs. TaxJar: A Quick Overview

Let’s get the basics out of the way:

• Avalara offers an enterprise-level tax automation suite. It claims to handle everything from sales tax calculations to cross-border VAT compliance. It’s popular with larger corporations and offers deep integrations with platforms like NetSuite, SAP, and Salesforce.

• TaxJar, on the other hand, was built for eCommerce businesses. It’s simpler, more affordable, and integrates with platforms like Shopify, Amazon, and BigCommerce. It automates tax collection, report generation, and filings for small to mid-sized businesses.

So far, so good — right? Not so fast.

5 Critical Reasons Why Software Like Avalara and TaxJar Can Put Your Business at Risk

Let’s break through the marketing and talk about what these tools won’t tell you.

1. They Don’t Spot Nexus Triggers You Don’t Know Exist

Avalara and TaxJar can react to your data, but they can’t think for you. If you don’t know that a certain combination of economic thresholds, marketplace activity, affiliate relationships, or remote employee locations create nexus in a state — your automation won’t catch it.

Result? You don’t collect tax where you should have — and the state comes knocking.

2. They File Based on Bad or Incomplete Data

These platforms only work with the data you feed them. If your product taxability rules are wrong, your exempt sales aren’t documented correctly, or your data is missing key transaction details — you’ll be filing inaccurate returns month after month.

And when the state audits? Automation won’t stand up in court. You will.

3. You Still Need a Human to Manage the Chaos

Automation isn’t autonomy. Someone still has to monitor notices, resolve filing errors, answer nexus questions, respond to audits, validate exemption certificates, update state rules, and check accuracy.

Ask yourself: who on your team is doing that? If the answer is “nobody,” then no software is going to protect you.

4. Avalara and TaxJar Are Not Your Advocates

They’re software vendors — not tax advisors. If something goes wrong (and it will), their support team can point you to a knowledge base article or open a support ticket. But they will not:

• Defend you in an audit

• Proactively warn you about tax law changes

• Customize strategies to your business model

• Track your exposure across all 50 states

5. You’ll Outgrow Them — or Outpace Them

As your business scales, your exposure multiplies. You start selling B2B? Offering downloadable products? Holding inventory in multiple states? Running pop-up shops or drop shipping?

Automated tools lag behind reality. They’re not built to adapt, they’re built to standardize. But your business isn’t standard — and neither are the laws that govern it.

Let’s Be Honest: This Isn’t About Avalara vs TaxJar

The truth? You’re asking the wrong question.

The real question isn’t “Which software is better?”
It’s “Can any software alone keep my business safe from the nightmare of sales tax exposure?”

The answer is no.

Here’s What You Actually Need: Human Expertise + Hands-On Management

At My Sales Tax Firm, we don’t sell automation. We sell protection.

We don’t leave you to guess your nexus status, misclassify your products, or hope your integrations are working. Instead, we do the hard work for you:

• Nexus analysis across all 50 states

• Hands-on compliance monitoring

• White-glove sales tax registration

• Human-prepared filings and reviews

• Audit defense and state correspondence

• Exemption certificate reviews and strategies

• Real-time taxability consulting based on your business model

We don’t just automate. We advocate.

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Bottom Line: Automation Feels Easy… Until It’s Not

Avalara and TaxJar may seem like the cheaper, easier path. But shortcuts in sales tax always lead to risk — and it’s your business, not their software, that pays the price.

If you’re serious about staying compliant and avoiding audits, you need more than code. You need a team of experts in your corner.

👉 Don’t gamble on automation. Partner with experts who do this all day, every day.
Contact My Sales Tax Firm today for a free consultation — before the state finds you first.