In the wake of President Trump's recent "Liberation Day" announcement of reciprocal tariffs on global trading partners, tax professionals have a unique opportunity to provide valuable guidance to clients facing tariff-related challenges. The current environment of changing percentages and terms creates significant uncertainty, but also positions tax preparers as essential advisors during this transition.
Recent polling by the AICPA & CIMA reveals that 85% of business executives report tariffs are creating uncertainty in their business plans. As a tax professional, your first step should be to assess which clients in your portfolio are most exposed to tariff impacts:
- Businesses with direct international supply chains
- Companies supplying to larger global enterprises
- Clients with significant imported materials or components
- Businesses competing with imported products
Key Advisory Services to Offer
1. Financial Impact Analysis
Help clients quantify potential tariff costs by conducting thorough reviews of their supply chains and import activities. Many CFOs are split between passing costs to customers or absorbing them internally, and your analysis can inform this critical decision.
2. Compliance Assurance
As Charles Clevenger from UHY Consulting notes, "This is a more complex tariff environment than most companies have experienced in the past." Tax professionals should ensure that clients properly document:
- Country of origin specifications
- Appropriate customs paperwork
- Accurate customs entries
- Required broker communications
3. Scenario Planning
Follow EY's advice to "model and analyze trade flows" with clients. Develop multiple financial scenarios based on different tariff outcomes to help clients prepare for various possibilities. This forward-looking analysis is precisely what businesses need during uncertainty.
4. Strategic Alternatives
Beyond basic compliance, tax professionals can provide higher-value consulting by exploring:
- Supply chain restructuring options
- Potential tax strategies to offset tariff impacts
- Cost-saving opportunities in other business areas
- Pricing strategy adjustments
Preparation Steps for Tax Professionals
To effectively serve clients during this period, consider these preparatory steps:
Stay informed on tariff developments through industry associations and government update.
Develop modeling tools that can quickly analyze different tariff scenarios for clients
Establish relationships with customs and international trade specialists for complex cases
- Create educational resources to help clients understand tariff implications
Remember that while tariffs create challenges, they also present an opportunity for tax practitioners to demonstrate their value through forward-thinking financial analysis and strategic guidance.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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