Finaloop vs Tax Rex ‑ Sales Tax Automationfor Shopify (2026)
Finaloop and Tax Rex ‑ Sales Tax Automation cater to very different financial needs within the Shopify ecosystem. Finaloop positions itself as a comprehensive accounting solution, offering bookkeeping services delivered through real-time software. It targets ecommerce and multichannel brands seeking full-service accounting, inventory management, and financial dashboards. Their strength lies in providing accurate, tax-ready financials, including Profit & Loss, Cash Flow, and Balance Sheet, along with inventory sync and COGS calculation, all managed by expert accountants. Tax Rex, on the other hand, is a specialized sales tax automation tool. Its focus is solely on US state sales tax compliance, automating tax return report generation, filing, and economic nexus tracking. Tax Rex is ideal for businesses that need assistance with navigating the complexities of US sales tax laws, particularly those selling in multiple states and needing to manage economic nexus rules. It aims to simplify tax compliance and reduce the burden on business owners. The fundamental difference is Finaloop handles ALL accounting including inventory and COGS, while Tax Rex focuses only on automating sales tax filing and reporting.
At a Glance
Finaloop
60 reviews
Tax Rex ‑ Sales Tax Automation
91 reviews
Detailed Overview
Finaloop
Accounting software + service for ecommerce. Get real-time fully accurate bookkeeping & inventory
Key Features
- Tax-ready P&L, Cash Flow, Balance Sheet, and payable and receivable tracking
- Inventory sync & management (FIFO unit tracking) for ecommerce & retail
- Real-time financial dashboard built for founders
- Full history catch up - whether your books are messy or non-existent
Tax Rex ‑ Sales Tax Automation
US State Sales Tax return Reports & Automated Filing for your store. Easy, Accurate & Time Saving!!!
Key Features
- Timely Autofile: Ensure on-time tax return filings while you focus on business
- Accurate Tax Reports: Precise sales tax reports tailored to state's requirements
- Economic Nexus Alerts: Stay informed on new state nexus thresholds
- Effortless State Registration: Simplified new state registration for compliance
- Ability to Ignore orders imported from Marketplaces like Amazon, Ebay, etc
Feature Comparison
| Rating | 5/5 | 5/5 |
Rating Finaloop5/5 Tax Rex ‑ Sales Tax Automation5/5 | ||
| Reviews | 60 | 91 |
Reviews Finaloop60 Tax Rex ‑ Sales Tax Automation91 | ||
| Focus | Comprehensive Accounting & Bookkeeping | Sales Tax Automation |
Focus FinaloopComprehensive Accounting & Bookkeeping Tax Rex ‑ Sales Tax AutomationSales Tax Automation | ||
| Target Merchant | Ecommerce & Multichannel Brands needing full accounting | US Shopify stores needing sales tax compliance |
Target Merchant FinaloopEcommerce & Multichannel Brands needing full accounting Tax Rex ‑ Sales Tax AutomationUS Shopify stores needing sales tax compliance | ||
| Key Feature Highlight | Real-time financials & expert accountant support | Automated filing & Economic Nexus alerts |
Key Feature Highlight FinaloopReal-time financials & expert accountant support Tax Rex ‑ Sales Tax AutomationAutomated filing & Economic Nexus alerts | ||
| Value Proposition | Complete financial visibility and tax-ready books | Simplified sales tax compliance and reduced risk of penalties |
Value Proposition FinaloopComplete financial visibility and tax-ready books Tax Rex ‑ Sales Tax AutomationSimplified sales tax compliance and reduced risk of penalties | ||
| Ease of Use (Inferred) | Requires onboarding with accountants, but software is real-time | Automated report generation based on existing Shopify tax settings |
Ease of Use (Inferred) FinaloopRequires onboarding with accountants, but software is real-time Tax Rex ‑ Sales Tax AutomationAutomated report generation based on existing Shopify tax settings | ||
| Inventory Management | Yes (FIFO unit tracking) | No |
Inventory Management FinaloopYes (FIFO unit tracking) Tax Rex ‑ Sales Tax AutomationNo | ||
Our Verdict
The choice between Finaloop and Tax Rex depends entirely on the merchant's specific needs. If a business needs a complete accounting solution, including bookkeeping, inventory management, and financial dashboards, Finaloop is the better choice, provided they are comfortable with the service-based model. For businesses already managing their core accounting functions but struggling with the complexities of US sales tax, Tax Rex is the clear winner. It offers focused automation and compliance features that Finaloop lacks. A very small business that only sells in one state and doesn't need full accounting likely doesn't need Finaloop yet, but could benefit from Tax Rex if they want automated filing. Larger companies selling in many states likely need both apps or comparable software.
Common Questions
Does Finaloop automate sales tax filings like Tax Rex?
While Finaloop provides tax-ready financials, the description doesn't state whether it automates the actual sales tax filing process in different states. Its strength is in providing accurate financial data for tax preparation, which can then be used for filing through another service or manually. Tax Rex focuses exclusively on automating the US sales tax filing process.
Can Tax Rex handle inventory management like Finaloop?
No, Tax Rex is solely focused on sales tax automation and reporting. It does not offer any inventory management capabilities. Finaloop provides inventory sync and management, including FIFO unit tracking, as part of its overall accounting solution.
Is Finaloop suitable for businesses selling only in one state?
Finaloop can be beneficial for businesses selling in one state if they require comprehensive accounting services and financial insights. However, the benefits of Finaloop may be less pronounced compared to businesses selling in multiple states with complex accounting needs. A simpler accounting software solution might be sufficient for a single-state business if they don't need expert accountant support.
Does Tax Rex work outside the US?
Based on the description, Tax Rex is specifically designed for US state sales tax. It is not designed to handle sales tax requirements in other countries. Finaloop's description does not specify whether it supports international sales tax regulations.
Which app provides more direct, hands-on support?
Finaloop includes a team of expert accountants who provide full-service bookkeeping. This implies a high level of direct, hands-on support. Tax Rex focuses on automation and offers features like Economic Nexus Alerts and Simplified State Registration, suggesting support primarily through software features and potentially documentation, although this is not explicitly stated.
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