Accounting body CPA Australia has released a set of strategic recommendations aimed at assisting local businesses affected by the announced US trade tariffs.
The professional accounting body has identified key areas for business leaders to address in order to mitigate the potential impact of the tariffs and position themselves for long-term resilience.
Go deeper with GlobalData
CPA Australia Business Investment and International lead Gavan Ord said the accounting profession will play a “leading role in supporting clients and organisations through these turbulent economic waters”.
“Any shock to global trade conditions presents a wide range of consequences and challenges for businesses to overcome. During periods of instability and uncertainty, planning, flexibility and professional guidance become essential.
“Seeking professional support from trusted advisors is critical in informing business leaders and decision-makers on how to adapt to the sudden shock of new trading environments.”
The nine strategies outlined by CPA Australia include assessing exposure to the tariffs, conducting a thorough financial health check, and maintaining profit margins by either passing on tariff costs or reducing operational expenses and improving efficiencies.
Businesses are also encouraged to diversify their markets and suppliers to minimise dependency on specific trade channels and to consider adjusting their products to better suit shifting market demands.
Strengthening cash flow is emphasised as a priority, along with promoting a company’s unique selling proposition to reinforce its market position.
CPA Australia further advised businesses to seek professional guidance in navigating the challenges posed by the tariffs and to actively look for new opportunities that may arise in response to the changing trade environment.
Ord said that finance professionals can assist in not only managing the implications of the tariffs but also in identifying growth prospects in new markets.
He also encouraged businesses to take advantage of support services offered by government agencies such as Austrade, which provide valuable resources for companies facing trade-related disruptions.
“For many businesses, the changing economic environment is providing an impetus to diversify. It’s possible to minimise risks and seize opportunities through operational efficiencies and market diversification,” Ord added.
