Death and taxes are the only things that feel certain, especially if you’re a business owner in today’s economy.  As the CEO of an award-winning CPA firm, I work closely with business owners across various industries, especially here in California’s Central Valley, and I’m hearing the same concerns repeated. Should I be cutting back? Where am I leaking money? How do I stay flexible if things get worse?

Tariffs and trade policy shifts are disrupting supply chains and pushing up the cost of goods, especially for manufacturers, ag operations and retailers. Labor costs are rising, California’s minimum wage continues to climb, and new regulations like the FAST Act could change how wages and scheduling are handled in specific industries. Water and environmental regulations are adding unpredictability for Central Valley farms and agri-businesses. Sales tax increases and new taxes from recently passed measures are affecting margins whether you’re a service-based business or selling physical products. 

Plus, consumer spending is in decline as inflation and economic jitters cool the demand for services in many sectors. Together, these add up to a growing question: How do I protect my business if I don’t know what’s coming next?  

When clients come to me with concerns or even in my own life, I am reminded that the opposite of chaos is clarity. Sure, you can’t always control the source of chaos, but you can control your own sense of clarity about things and what comes next for you personally. 

When things get tough like this, it’s our default to resort to panic and look for options to escape. But panicking doesn’t solve the problem and escaping doesn’t solve anything in this case. A better option is to keep calm and work to regain clarity on your financial situation. In this article, I’d like to share my recommendations for regaining and keeping your sense of financial clarity for your business.

Common mistakes businesses make when cutting costs

You’re not alone if you’ve already taken a red pen to your budget. That’s smart. But in my experience, some cost-cutting moves backfire in the long run. Firing staff, slashing marketing or canceling vendor relationships without understanding what is driving up costs or eating at your profits will often do more damage than good. Not all cuts are equal. 

I’ve also seen businesses focus on annual savings without thinking about monthly cash pressure. You can be “profitable” on paper and still run out of cash. This is especially true if you’re running the business using outdated KPIs (key performance indicators) and revenue targets. For example, if your budget was built for stable times, it’s no longer accurate. You need to adapt your financial projections to match the new reality. 

One of the biggest mistakes I see business owners make is avoiding asking for help. Even when their bookkeeper is overloaded or they feel their accountant is doing a horrible job, they don’t make any serious effort to change it so they can improve their outcomes. You can only make it on Excel and Youtube videos for so long. Eventually, you learn that your time as a business owner is best spent on running the business instead of those daily tasks running you.

I know that bookkeeping and accounting can feel overwhelming to understand much less maintain, but they are also your most powerful forecasting tools for navigating uncertainty. When done correctly, you can use your financial reports and statements to understand which expenses you can cut without weakening your business, exactly how your company’s current budget needs to evolve to match your current economic reality and which customers are paying on time and which are doing their best to “hide in the chaos.”

How a CPA helps you navigate uncertainty

This is where my team and I come in and provide the critical accounting and fractional CFO services you need to ensure solvency and sustainability in uncertain times. During this time, a good CPA will shift from just being “your tax person” that you throw a shoebox of files at once a year to being an invaluable financial strategist that helps you plan ahead for success and financial sustainability. 

A good CPA can help you map out where your money is going — weekly, monthly and quarterly — so you can see cash surpluses and shortfalls before they hit. We’ll run “what-if” models so you can see the financial impact of things like a 10% tariff increase or a 15% drop in demand and make confident decisions, not guesses. 

A good CPA can also work with you to pinpoint your true break-even point so you know exactly how much you need to sell each month to stay afloat. Then, we’ll review your cost structure together (not all expenses are bad) and separate the essential costs from the ones that no longer serve you. This leads to smarter, not just leaner, budgets. You’ll get clear, monthly reports showing where you’re spending, where you’re earning, and where you’re at risk, which means you’re getting financial reports that you can actually understand and use to run your business. 

Of course, as a CPA, I can also help you defer or reduce tax liability wherever possible so more of your money stays in the business. And whether you’re holding steady, trying to grow, or looking to sell in the future, I’ll act as a sounding board for big decisions.

Many things are uncertain. Your financials don’t have to be

Some measure of uncertainty will always be with you. But panic doesn’t need to be part of your business plan and, with the right accounting team on your side, you can have:

• Cash flow forecasting keeps you proactive instead of reactive.
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• Scenario planning helps you prepare for uncertainty with confidence.
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• Break-even analysis reveals what your business really needs to survive and grow.
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• Monthly reporting gives you visibility without the guesswork.
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If you have someone in your corner helping you see the financial picture clearly and showing you where to pull back, you’re already ahead of most businesses trying to guess their way through.

If you don’t have a CPA, contact my firm and let’s work together to make sure your business isn’t just surviving, but positioned to thrive through the good and bad times.

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Cassidy Jakovickas, CPA, is president and CEO of MBS Accountancy Corp. in Fresno.