Essential Business Accounting and Tax Planning Tips from Fran Schram

Navigating the Complex World of Business Accounting: Insights from Fran Schram

In the ever-evolving landscape of business accounting and tax planning, the expertise of seasoned professionals can be the difference between success and failure. Fran Schram, the visionary behind Schram & Associates, has been a beacon of knowledge and guidance in this intricate field for over three decades. Starting her firm in 1988 while still in college, Schram has transformed her part-time endeavor into a thriving business, now boasting a team of 20 employees across offices in Bellevue and Covington.

With a career spanning 36 years, Schram has witnessed firsthand the shifts in accounting practices and tax regulations, observing the rise and fall of many businesses along the way. Her journey from a college student with a passion for child psychology to becoming an accredited business accountant, tax preparer, and adviser is a testament to her dedication and skill.

Schram & Associates’ growth is not just a story of personal achievement but also a source of invaluable advice for businesses navigating the complexities of accounting and tax planning. Schram shared five critical tips for businesses to consider:

1. Diverse Information Sources: Emphasizing the importance of not relying on a single source of information, Schram advises businesses to seek an advocate, such as a certified public accountant or enrolled agent, to help navigate the complexities of bookkeeping, accounting, and taxes. This guidance is crucial, especially for new business owners unfamiliar with nuances like sales and payroll taxes.

2. Understanding Tax Entities: Schram highlights the complexity of how business structures impact personal taxes, illustrating this with the example of an S corporation owner’s query about purchasing a work truck. The intricate nature of these decisions underscores the need for skilled professionals to guide business owners.

3. Amending Tax Returns for ERC: For businesses that received an Employee Retention Credit (ERC) in 2020 or 2021, Schram stresses the importance of amending tax returns for those years. Missteps in this area could attract IRS scrutiny, making professional assistance vital.

4. The Value of Professional Bookkeeping: While cutting costs on bookkeeping and accounting services might seem appealing, Schram warns against underestimating the importance of these services. Professional, experienced bookkeepers and accountants are crucial for maintaining the financial health of a business.

5. Critical Evaluation of Information: Schram cautions businesses against taking information from outside sources at face value, especially when it comes to accounting and tax advice. The complexity of these fields means that generic advice might not apply to every unique business situation, highlighting the importance of consulting with professionals.

Fran Schram’s journey and insights offer a roadmap for businesses striving to navigate the treacherous waters of accounting and tax planning. Her emphasis on professional guidance, careful decision-making, and the critical evaluation of information serves as a reminder of the nuanced nature of business finances. As Schram & Associates continues to thrive, its founder’s wisdom remains an invaluable asset to the business community.