A new presidential administration often brings changes that can impact taxes, regulations, and the economy. The first 100 days set the tone for what’s ahead, and businesses that prepare early will be in the best position to adapt and thrive. Here’s what you need to watch, what not to ignore, and how to protect your business financially.
Key Financial Areas to Watch (and What Not to Ignore)
1. Tax Policy Changes
New administrations frequently propose tax reforms, which could impact corporate tax rates, small business deductions, and capital gains taxes.
What NOT to Ignore: Waiting too long to assess potential tax liabilities could result in unexpected costs at year-end.
Tip: Meet with a tax advisor early to understand potential changes. Proactive tax planning—such as adjusting deductions, structuring income, or investing in tax-advantaged accounts—can help minimize liabilities.
2. Regulatory Adjustments
Changes in labor laws, financial reporting requirements, and industry-specific regulations can create compliance challenges.
What NOT to Ignore: Failing to update your business policies could lead to penalties, lawsuits, or operational disruptions.
Tip: Regularly review labor laws, employee classification rules, and reporting standards. Consult with a legal or HR professional to ensure compliance.
3. Inflation & Interest Rates
New economic policies can influence inflation and borrowing costs. Rising interest rates could make business loans and credit lines more expensive.
What NOT to Ignore: Assuming today’s low rates will last forever can be risky—future rate hikes may increase your financing costs.
Tip: Lock in favorable loan terms now by refinancing debt before interest rates rise. Also, evaluate pricing strategies to adjust for potential inflation.
4. Government Incentives & Grants
New administrations may introduce stimulus programs, tax credits, or grants to support small businesses.
What NOT to Ignore: Missing out on financial incentives simply because you didn’t research what’s available.
Tip: Stay informed about small business tax credits, grants, and loan programs. A CPA can help identify incentives that apply to your industry.
5. Labor Market & Workforce Policies
Changes to minimum wage laws, healthcare mandates, and remote work policies could affect hiring costs and workforce planning.
What NOT to Ignore: Ignoring new labor laws could lead to compliance violations or costly employee turnover.
Tip: Reassess your payroll budget and benefits offerings to ensure you’re aligned with new laws. Also, consider automation and outsourcing to manage rising labor costs.
Steps to Safeguard Your Business
- Build Strong Cash Reserves
- Having at least 3–6 months of expenses set aside can help weather economic shifts.
- Diversify Revenue Streams
- Expanding into new markets or services can reduce dependency on a single income source.
Review Contracts & Agreements
- Ensure supplier and vendor agreements are adaptable to changing economic conditions.
- Consult Financial & Legal Experts
- Staying proactive with professional guidance can help you avoid costly mistakes.
Stay Ahead—Plan Now
The first 100 days of a new administration provide a critical window to assess risks, adjust strategies, and position your business for success. Don’t wait until changes take effect—start preparing now.
Need help navigating these shifts? Email us at info@axiomtax.cpa, call (813) 977-0089 or book a confidential consultation.
