--- title: 'Navigating Tariffs, Inflation & Cost of Goods Sold' url: https://www.medius.com/blog/navigating-tariffs-inflation-cost-of-goods-sold/ updated: 2025-05-16T19:30:47Z --- [Back to Blog](https://www.medius.com/blog/) Accounts Payable 5.6.2025 # Navigating Tariffs, Inflation & Cost of Goods Sold How CFOs can leverage AP for bottom-line growth Table of Contents 1. Introduction 2. Why CFOs should shift focus to AP 3. How AP can improve cash flow & profitability 1. Visibility into costs: a CFO’s strategic advantage 2. Smarter cash flow management 3. Top 3 challenges within B2B payments 4. Reducing operational costs 5. Strengthening supplier relationships 4. The cost of poor AP management 5. Leveraging technology for AP optimization Hear what's covered in this article: * * * *Publisher’s statement: This blog is an adaptation of an original editorial written by Dean Baxter, Enterprise Sales Executive at Medius, based on his experience and expertise working with financial decision-makers for over 25 years. Read the original editorial [here](https://www.linkedin.com/pulse/cfo-addressing-rising-costs-tariffs-dean-baxter-yszhe/).* As we move deeper into 2025, CFOs face increasing pressure from rising tariffs, inflation, and supply chain disruptions. These challenges are squeezing profit margins and making financial planning more complex. **Does this sound familiar?** ![quote icon](https://www.medius.com/media/0xnblepn/quote-icon.png) *"Too many times, when I meet with CFOs, the focus is on revenue growth. But now, the impact of tariffs on revenue and the trickle-down effect on consumers is taking center stage."* — Dean Baxter, Sales Executive, Medius While revenue growth is key to profitability, long-term success also depends on controlling costs and maintaining healthy cash flow. So, what happens if revenue slows? How can you still protect margins? A very effective—yet often overlooked—strategy in cost control lies in [optimizing Accounts Payable (AP) operations](https://www.medius.com/home/ "Home"). ## Why CFOs should shift focus to AP Visibility into the cost of operations comes down to two key areas: **Cost of Goods Sold (COGS)** The direct cost of producing goods or services. **Operational efficiency** How well internal processes and employee expenses support financial health. Many companies look for quick cost-cutting solutions like layoffs. But these short-term fixes can hurt productivity morale and even increase rehiring costs. Instead, look internally at processes that boost cash flow and give you key insights into COGS, helping to counter the effects of rising tariffs. When handled strategically, AP can directly impact your bottom line by optimizing payments, strengthening supplier relationships, and keeping overall costs in check. **Autonomous AP automation provides a smarter, more strategic way to manage costs without sacrificing workforce stability.** ## How AP can improve cash flow & profitability ### Visibility into costs: a CFO’s strategic advantage * * * An efficient, automated AP process gives CFOs real-time insights into COGS and operational expenses. With better transparency into invoices, payment terms, and supplier obligations, you can: - Make **informed payment decisions**. - **Optimize cash flow** timing. - **Reduce financial waste.** With complete visibility into your AP data, you gain control over spending and unlock opportunities for cost savings. Just look at invoice processing costs – automation helps you slash costs by as much as 80% percent by automating AP processes, as shown in our [Medius AP Benchmark Report](https://www.medius.com/customers/ap-benchmark-report/ "AP Benchmark Report"). “Medius AP Automation enabled us to reach high automation rates right from the start. And we proactively work on continuous improvements. We now have better visibility into the process to understand where things go wrong and where we need to improve.” Pim Beijen Group NWC Manager, [SoftwareONE](https://www.medius.com/resources/case-studies/softwareone-ap-automation/ "SoftwareONE AP Automation") [![SoftwareONE logo](https://www.medius.com/media/fwxbqtwl/software-one-no-padding.png?rmode=max&width=323&height=60)](https://www.medius.com/resources/case-studies/softwareone-ap-automation/ "SoftwareONE AP Automation") ### Smarter cash flow management * * * A well-managed AP process can also help CFOs optimize cash flow while maintaining strong supplier relationships. Key strategies include: - **Extending Days Payable Outstanding (DPO):** Holding onto cash during financial strain, like rising inflation or tariffs, offers short-term flexibility. - **Early Payment Discounts:** On the flip side, paying early can lead to discounts that lower COGS. Balancing these approaches ensures financial stability without jeopardizing supplier goodwill. ## Top 3 challenges within B2B payments * * * [!\[Ardent Partners’ Pulse on B2B Payments in 2024\](https://www.medius.com/media/1ndbgkml/ardent-partners-pulse-on-b2b-payments-2024-resource-page.png?rmode=max&width=372&height=0&v=1dbbec33bf5db70)](https://www.medius.com/resources/guides-reports/ardent-partners-pulse-on-b2b-payments-in-2024/) **Long payment approval times** 41% of B2B payment teams in 2024 cite lengthy approval times as their top challenge, delaying payments and risking late fees. **Payment fraud risk** 34% of businesses experienced a payment fraud attack last year, highlighting the need for strong prevention technology. **Lack of visibility into payment data** 22% of AP teams struggle with limited visibility into payment activity, impacting decision-making and efficiency. Download the [Ardent Partners](https://www.medius.com/resources/guides-reports/ardent-partners-pulse-on-b2b-payments-in-2024/ "Ardent Partners’ Pulse on B2B Payments in 2024") report to learn how to tackle these challenges. [Get the report](https://www.medius.com/resources/guides-reports/ardent-partners-pulse-on-b2b-payments-in-2024/ "Ardent Partners’ Pulse on B2B Payments in 2024") ### Reducing operational costs * * * Manual AP processes are costly—not just in terms of staffing but also in inefficiencies like late payments and invoice errors. But when you automate, you can drive cost savings and efficiencies that impact the bottom line, including: - **Process invoices faster** with fewer errors. The [cost of manually processing a single invoice](https://www.medius.com/blog/how-much-does-cost-process-invoice-where-you-save/ "How much does it cost to process an invoice – and where can you save?") can range from $12 to $30–but automation can reduce this cost to as little as $3 per invoice. - **Reduce the need for large AP teams.** - **Catch costly fraud** before it happens. - Allow finance teams to [**focus on strategic initiatives**](https://www.medius.com/blog/the-gift-of-time-how-autonomous-accounts-payable-shifts-ap-managers-focus-to-strategic-initiatives/ "The gift of time: how autonomous accounts payable shifts AP managers focus to strategic initiatives"). Instead of chasing down approvals, employees can focus on high-value tasks like forecasting and supplier negotiations. **Proof:** During a [webinar](https://www.medius.com/resources/events-and-webinars/want-to-know-why-people-love-autonomous-ap-or-are-you-working-late/ "Want to know why people love autonomous AP, or are you working late?") with SSON, we asked attendees about the main perk of adopting an autonomous AP process. The audience agreed that the key benefit is freeing time for strategic initiatives. **What benefit of autonomous invoice processing is the biggest driver to change for your organization?** Time saved to focus on more strategic initiatives (55%) * * * Cost savings and/or headcount reduction (18%) * * * Improved data management and analytics (16%) * * * Better fraud and risk management (11%) * * * Better compliance (0%) ### Strengthening supplier relationships * * * Tariffs and inflation put added pressure on supplier relationships, making strong partnerships more crucial than ever. With the right AP automation, you can: - Ensure **timely, accurate payments.** - **Avoid disputes** over invoicing errors. - **Negotiate better terms** with trusted suppliers. Nearly [half of supplier payments are delayed](https://www.medius.com/financial-census/slow-payments/ "Slow Payments"), even though 80% of suppliers offer discounts for early payments. By streamlining AP, companies can cut processing time from six days to one—unlocking early payment discounts, securing priority inventory, and improving credit terms. These advantages drive long-term cost savings and enhance financial stability. ## The cost of poor AP management Ignoring a critical process like AP management can have unexpected consequences, hidden costs, hurt profit margins, and lead to: ### Late payment fees and penalties Missing deadlines leads to unnecessary expenses. ### Missed discounts Lost opportunities to reduce COGS. ### Supplier strain Damaged relationships can impact supply chain stability. Today’s economic conditions demand financial agility. For CFOs, this means looking beyond revenue and focusing on cost control, cash flow optimization, and supplier relationships. **A well-managed AP function isn’t just a cost center—it’s a strategic advantage.** Automating and optimizing AP will improve COGS management, strengthen financial resilience, and position your business for long-term growth. ## Leveraging technology for AP optimization This is where solutions like **Medius** come in. We understand your challenges and can help you achieve process autonomy, bottom-line savings, and internal efficiencies. We’ll help you transform AP from an operational function into a **bottom-line growth driver**. **Let’s explore how to help you save.** [Schedule a call](https://www.medius.com/contact-us/ "Contact Us") **Find out how much you can save.** [Savings calculator](https://www.medius.com/savings-calculator/ "Savings Calculator") **Global trends in accounts payable: what to watch in 2025** [Read blog](https://www.medius.com/blog/global-trends-in-accounts-payable-what-to-watch-in-2025/ "Global trends in accounts payable: what to watch in 2025") [!\[Medius AP Automation product tour\](https://www.medius.com/media/wduby4ty/product-tour.png?rmode=max&width=372&height=0&v=1dc8cb151901790)](https://www.medius.com/solutions/) #### The Financial Professional Census Explore hurdles facing finance professionals today and learn how to overcome them in our research-backed Financial Professional Census report. [Get the report](https://www.medius.com/resources/guides-reports/financial-professional-census-report-2024/ "Financial Professional Census Report 2024") #### Ardent Partners' State of AP in 2026 AI is changing what AP teams can do, and fast. Get leading analysts at Ardent Partners' take on where the industry is headed. [Get the report](https://www.medius.com/resources/guides-reports/ardent-partners-state-of-ap/ "Ardent Partners State of AP") #### Webinar: Preparing for agentic AI in AP In this webinar with SSON, see how leading finance teams are moving from automation to autonomous AP, with real governance built in. [Watch the webinar](https://www.medius.com/resources/events-and-webinars/through-trust-and-governance-sson/ "Through trust and governance SSON") #### Discover accounts payable benchmarks Learn the efficiency metrics that matter for AP teams and the benchmarks derived from thousands of Medius customers around the globe. [Get the report](https://www.medius.com/resources/guides-reports/ap-benchmark-report/ "AP Benchmark Report") #### Questions about AP automation? Let's talk through it. A 30-minute conversation with a Medius expert costs you nothing and might save you a lot. Book a consult ## Related Posts [8.18.2026 AP Automation Best AP automation software for food and beverage](https://www.medius.com/blog/best-ap-automation-software-for-food-and-beverage/) [8.17.2026 Accounts Payable 5 AI-powered tactics for touchless accounts payable](https://www.medius.com/blog/five-tactics-for-peace-of-mind-touchless-accounts-payable/) [!\[focused business woman looking at computer\](https://www.medius.com/media/exkdu0tm/adobestock_126291778-red.jpg?width=340&height=245&v=1d99261d24b3f10) 8.13.2026 AP Automation The AP metrics CFOs review first when evaluating finance operations](https://www.medius.com/blog/the-ap-metrics-cfos-review-first-when-evaluating-finance-operations/) [8.12.2026 Integration Choosing the best AP automation platform for complex ERP environments](https://www.medius.com/blog/choosing-the-best-ap-automation-platform-for-complex-erp-environments/) [8.11.2026 Fraud & Risk The best AP automation platforms for strengthening payment controls](https://www.medius.com/blog/the-best-ap-automation-platforms-for-strengthening-payment-controls/) [8.10.2026 Accounts Payable Top finance and accounting conferences and events in 2026](https://www.medius.com/blog/top-finance-and-accounting-conferences-events/) Previous Next [View All Posts](https://www.medius.com/blog/) ## Ready to transform your AP? 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