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Tariffs Are Here. Is Your Accounting Strategy Ready?

Written by Marketing | Apr 9, 2025 6:41:02 PM

If you're a product-based business importing materials or goods, tariffs aren’t just fine print—they’re a financial pressure point.

And they’re not going away.

Whether you’re sourcing packaging, ingredients, or finished products overseas, shifting policies and newly proposed tariffs can silently erode your profits. What was once just another line on a customs form is now a line in the sand for your business’s viability.

So the question isn’t if tariffs will affect your business—it’s how well you’re prepared to handle them.

The Hidden Cost of Tariffs

Tariffs are import taxes. For CPG companies, that means extra costs on everything from containers and labels to ingredients and finished goods.

And with tight margins, even small changes can tip a profitable SKU into the red.

Three common ways CPG businesses lose money on tariffs:

  • Misclassifying imported goods (wrong HS code = wrong tariff rate)
  • Reacting late to new policy changes
  • Bundling tariffs into general COGS, skewing profitability data

If you don’t have an experienced accountant tracking and categorizing these correctly, it can quietly distort your entire financial picture—until tax time or a growth opportunity exposes the gaps.

Why General Accounting Isn’t Enough

If you’re relying on a standard in-house bookkeeper—or managing the books yourself—it’s easy to treat tariffs as just another line item. But here’s what often gets missed:

  • True landed cost per SKU
  • Channel- or SKU-level margin clarity
  • Reliable forecasting and cash flow visibility
  • The data needed for potential trade relief or audit defense

None of those should be optional.

What Smart Accounting Looks Like

A fractional accounting partner with inventory expertise—like BELAY—can help you stay ahead of the curve. Here’s how we support brands like yours:

1. Landed Cost Transparency

We build systems that track every cost associated with getting a product to market—freight, duties, tariffs, broker fees, and more. Whether you’re using spreadsheets or a full-fledged inventory management tool, we make sure you’re seeing the full picture.

2. Custom Margin Reporting

We help you break out profitability by SKU, vendor, and sales channel—so you know which products are working and which aren’t. No guesswork. No averaging. Just clean, accurate data to guide better decisions.

3. Strategic Cash Flow Planning

Tariff volatility means cash flow management isn’t optional. We help clients build forecasts and plan ahead—whether that means stockpiling before changes take effect or navigating longer lead times. Every dollar is accounted for.

4. Connections That Go Beyond the Books

We work with trusted customs brokers and trade compliance experts. So if we see an issue or opportunity—like a misclassification or redundant duty—we can connect you to the right specialist fast.

This Isn’t Just Accounting. It’s Operational Clarity.

For businesses relying on imports, tariffs are now a permanent fixture. The key is building financial systems that flex with the changes—so you can scale with confidence.

Don’t wait until a product turns unprofitable or you miss a critical filing. The right financial team won’t just show you the problem—they’ll help you find the fix.

Wondering if your current accounting system is giving you the right visibility into tariff costs? Let’s talk

BELAY offers tailored bookkeeping, CFO, and tax support built for growing businesses that need more clarity, not more complexity.