What CFOs Need to Know About Tax, Tariffs, and Transformation

Market shifts, tax policy changes, and tariff risks are creating a new business landscape with significant financial effects.

But here’s the challenge: Most finance teams are still reacting instead of preparing and strategizing.

To lead in today’s environment, CFOs need a strategy that’s:

• Aligned with technology initiatives and ERP investments.
• Capable of modeling risk across entities, geographies, and ownership structures.
• Flexible enough to pivot when tariffs or legislation shift the landscape.

Tax, Tariffs, and Tech: Why it All Connects

Think of tariffs, tax law, and technology as a three-part stress test for your business strategy.

Here’s why:

1. Tax Is No Longer Just About Compliance

With new U.S. tax legislation reshaping the business environment, CFOs must ask:

• How are we minimizing exposure across entities?
• Are we leaving money on the table with underutilized credits or incentives?
• Are we prepared for audit or regulatory scrutiny?
• Is our data up-to-date and usable to make informed decisions?
• Have we modeled different transition outcomes based on fluctuating economic circumstances?

Use Case: Unlocking Tax Credits in a Complex Expansion

One growing company rapidly expanded nationwide, creating tax complexity and limited visibility into potential incentives. We worked to calculate qualified research activity and build a defensible strategy.

The result: $1.5 million in federal and state R&D credits secured, turning tax complexity into a strategic opportunity.

2. Tariffs Are a Strategic Finance Concern

Tariff regimes change fast, and the financial impacts are often hidden in Cost of Goods Sold (COGS), delayed cash flow, and missed planning opportunities. CFOs must be strategic when it comes to tariff risk.

You need visibility into:

• How the organization is impacted, including by department.
• Which suppliers (foreign and domestic) carry the most tariff exposure.
• Which tariff mitigating strategies are available (e.g. First Sale for Export, Bonded Warehouses, Foreign Trade Zones).
• How transfer pricing on cross-border intercompany transactions impacts tariffs and income tax.

3. Technology Is the Accelerator

True technology strategy connects finance, tax, operations, and trade data in real time. Ask yourself:

• Can we calculate total tax liability across jurisdictions at any moment?
• Are tariffs, duties, and compliance data flowing into our ERP or BI dashboards?
• Do our systems support scenario planning when legislation, tax codes, or suppliers change?

In our recent survey, 50% of business leaders reported using legacy systems. This means half of businesses are at a disadvantage when it comes to agility.

AI Boosts Accounting Efficiency

One company implementing AI in its accounting saw 47% faster operations. By automating manual tasks and routine inquiries, accountants can focus on strategic insights, transforming their role from number-crunchers to business partners.

AI agents can be established to monitor state, federal and international tax laws automatically and calculate tax liabilities during financial transactions. After gathering and calculating this data, they can then perform “what if” scenarios for analysis and planning.

Additionally, using Optical Character Recognition (OCR) and Natural Language Processing (NLP) technology to scan receipts, invoices, and forms can speed up data entry and reconciliation. For example, when a supplier invoice is scanned, AI can be used to automatically create the transaction in the ERP and spot anomalies, including those involving tax.

Build a Strategy that Performs, Protects, and Prospers

A strategic financial strategy aligns with your technology roadmap, risk strategy, and long-term goals.

Here’s how to build a financial strategy that drives impact:

Use Case: Turning Chaos into Strategy

When one of our clients faced sudden tariff increases, they needed to onboard a U.S. warehouse in under a month. Their real-time response was thanks to an earlier investment in ERP and integration platforms.

With Eide Bailly’s help, they had:

• Scalable systems (NetSuite, Boomi) that flexed with growth.
• Tax and compliance support aligned to the new warehouse setup.
• Rapid integration and testing that got the warehouse live in just three weeks.

What CFOs Should Prioritize Next

You’re already behind if your tax and finance strategy is reactive. Now is the time to:

Connect financials. Use data from your ERP, CRM, and operations to model the tax and tariff implications before they happen.

Monitor legislation. Don’t just react to policy change. Build a working scenario model with your tax advisor — especially in light of new tax legislation.

Bring advisors to the table sooner. Involve your advisors in planning cycles, not just at filing season. Ensure cross-collaboration between finance, operations, and technology teams.

Let’s build a strategy that’s made for today’s complexity and tomorrow’s opportunity. Connect with our tax and technology advisors to get started.