Tariffs Are Changing—Here’s How to Protect Your Bottom Line
Major shifts in U.S. trade policy are underway—and they’re already impacting the cost of doing business. A new executive order released in April 2025 imposes a baseline 10% tariff on most imported goods, with higher rates possible depending on the country and product category. If your business relies on international suppliers, this isn’t just a headline—it’s a direct hit to your cost structure, financial forecasts, and strategic planning.
As your accounting partner, our role is to help you adjust with confidence. Here’s what you need to know—and how we can help protect your margins, keep your business in compliance, and position you to adapt quickly in a shifting trade environment.
1. Higher Import Costs Are Squeezing Cash Flow
What’s happening: Tariffs raise the landed cost of goods. For many businesses, that means thinner margins—or the tough decision to raise prices.
What it means for you: Even a 10% tariff can materially affect your COGS and cash flow. Without a plan, you may find yourself overextended, especially if you carry inventory or operate on tight margins.
How we help:
Analyze your new cost structure
Build budget scenarios based on variable tariff rates
Identify opportunities to preserve margin and free up working capital
Now’s the time to stress-test your cash flow model before it becomes a crisis.
2. Compliance Just Got More Complicated
What’s happening: Tariff costs aren’t just operational—they have implications for inventory accounting, financial disclosures, and tax reporting.
What it means for you: If you’re capitalizing inventory, the added costs may affect how and when expenses hit your books. If you're subject to audit, improper reporting could raise flags. And if you operate across borders, transfer pricing and international compliance become even more complex.
How we help:
Accurately classify and track tariff-related costs
Ensure compliance with inventory valuation and reporting rules
Adjust your tax strategy to reflect changing expense timing and structure
Keep transfer pricing aligned with global tax requirements
We'll help you stay audit-ready, up-to-date, and confident in your reporting.
3. Planning in a Volatile Environment Requires Better Forecasting
What’s happening: Tariff rates are not static—and policy shifts can happen quickly. That makes long-term planning a moving target.
What it means for you: Financial planning, pricing, and supply chain decisions are harder to get right when the rules may change next quarter. Without built-in flexibility, you risk overspending—or missing out on cost-saving pivots.
How we help:
Build rolling forecasts with adjustable inputs
Run best- and worst-case scenarios based on evolving policy
Help you assess suppliers, pricing strategies, and sourcing options
We’ll give you the numbers and the insight to make confident decisions—no matter what comes next.
4. Thinking About Reshoring? There Are Tax and Budget Implications
What’s happening: Some businesses are considering a shift back to U.S.-based manufacturing to reduce exposure to trade disruptions.
What it means for you: While moving production domestically may reduce long-term tariff exposure, it comes with startup costs—and potential tax benefits.
How we help:
Model the cost vs. benefit of reshoring or regionalizing operations
Identify federal and state tax credits or deductions
Structure your investment in a tax-efficient way
Before you make a move, let’s map out the full financial picture together.
Now’s the Time to Get Proactive
You don’t control trade policy—but you can control how your business responds. With the right financial strategy, you can absorb costs, stay compliant, and adapt with agility.
Let’s talk about how these changes affect your business—and what you can do to stay ahead.
Contact our office today to schedule a planning session. We’ll help you navigate these tariff shifts, manage risk, and protect your bottom line.
More About Us
Get to Know Prestige Accounting Services Group
Offices in Flemington, NJ, and Califon, NJ
Our Mission: At Prestige Accounting Services Group, we are on a mission to redefine the tax experience for individuals and small businesses. With a focus on personalized service, strategic planning, and expert guidance, we aim to empower our clients to succeed financially with confidence and ease.
Expertise in Action: With a wealth of experience and a team of dedicated professionals, we specialize in individual and small business tax preparation. While we excel in all areas of taxation, our passion lies in serving the unique needs of small business owners in New Jersey. We understand that small business taxation requires specialized knowledge and attention to detail, which is why we go above and beyond to ensure our clients receive the guidance and support they deserve.
Tailored Solutions for Every Client: Whether you're a high-net-worth individual seeking comprehensive tax planning or a small business owner in need of accounting and bookkeeping assistance, we have the expertise to meet your needs. Our team takes the time to understand your specific situation and develop customized solutions that align with your goals and objectives.
Why Choose Us?: What sets us apart from other New Jersey tax firms is our commitment to excellence and innovation in the field of taxation. We don't just prepare tax returns; we provide strategic insights, proactive planning, and actionable advice to help our clients achieve their financial goals. With a team of two CPAs, an EA, and an ERO, we have the expertise and resources to deliver exceptional service and results.
Your Success is Our Priority: At Prestige Accounting Services Group, we measure our success by the success of our clients. We are dedicated to building long-lasting relationships, providing unparalleled service, and helping our clients thrive in today's ever-changing tax landscape.
We can't wait for you to experience the Prestige Accounting Services Group difference.
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