When tariffs shift, CFOs must lead the alignment

Sync data across teams to uncover the true cost

Tariffs rarely show up neatly on supplier invoices. They're often handled by customs brokers, buried in landed costs, or hidden in freight charges. That means procurement might not see them. Finance can’t model them. And IT may not even have a way to track them.

• Use analytics to understand total landed cost, including tariffs, duties, and transport.

• Combine customs data, supplier locations, and landed costs into real-time dashboards for better transparency and accurate forecasting on costs, inventory, and tax planning.

• Give procurement access to real-time cost data to support smarter sourcing decisions.

As supply chains shift, expect to see more third-party risks. Incorporate vendor onboarding due diligence into your workflows to avoid compliance issues or fraud.

Expand scenario planning beyond finance

What happens if a new tariff is imposed on goods from Southeast Asia? What if HTS (Harmonized Tariff Schedule) codes shift? What if a supplier passes through increased costs next quarter?

Those aren’t just finance questions. They impact procurement strategies, tech readiness, and supplier relationships.

• Loop procurement into financial planning cycles to model sourcing shifts.

• Involve IT in scenario planning to prepare systems for changes in supplier networks or cost structures.

• Adopt continuous risk monitoring tools—including AI-driven analytics—to simulate “what-if” scenarios and develop dynamic responses to tariff disruptions.

• Track leading indicators like cost impact, margin erosion, and working capital shifts to trigger timely action.

Without real-time insights, businesses are flying blind. This is why many CFOs are turning to AI-backed technology, including invoice automation, that can analyze and flag anomalies and changes in real-time.

Rethink procurement as a strategic lever

Procurement is more than just managing spend—it’s central to risk mitigation. With tariff volatility in play, sourcing teams can be the first line of defense.

• Identify high-risk suppliers in regions that are most affected by tariff fluctuations.

• Explore alternative vendors in lower-tariff countries.

• Negotiate with suppliers to share or absorb cost increases.

• Evaluate HTS code classifications for potential savings.

• Work together on strategies like storing goods in advance to avoid potential tariffs or rerouting them through countries where you can recover tariffs.

Strategic sourcing isn’t a one-time event. It’s a continuous process that must align with finance’s goals and IT’s capabilities.

Use IT to build a more flexible finance function

Tariff volatility is a systems problem as much as a finance one. Legacy ERP tools often fall short in surfacing tariff-related costs or modeling new scenarios. That’s where IT can help..Tariff volatility is a systems problem as much as a finance one. Legacy ERP tools often fall short in surfacing tariff-related costs or modeling new scenarios. That’s where IT can help.

• Procurement and sourcing platforms that allow rapid supplier re-evaluation.

• Expense management systems that help offset increased costs in other areas, such as travel and entertainment (T&E).

• Integration platforms that connect finance and operations data in real time.

• Automation and continuous accounting tools that instantly capture the financial impact of every transaction, which is essential for staying on top of tariff impacts across global operations.

Don’t just track invoices. Model landed cost, customs duties, and potential currency fluctuations to understand the full picture.

Take a methodical approach to transformation

You don’t need to reinvent the wheel overnight. But you do need a clear roadmap.

• Define your supplier network

  Map your current vendors and regions to get a baseline.

• Assess tariff exposure

  Understand which products or countries are most at risk.

• Explore mitigations

  This might include reclassifying HTS codes, adjusting sourcing, or shifting freight terms.

• Model payment strategies

  Factor in landed cost, not just invoice due dates. Re-evaluate payment terms and timing to support cash flow under new cost structures.

Keep track of tax positions and any transfer pricing risks tied to tariffs. As regulations change, having this documentation can help lower audit risks and make disclosures easier.