At JDC Accounting we believe that Irish SMEs selling abroad have rarely faced a more unpredictable trading environment. Shifting tariffs, changing trade relationships and volatile currency markets can alter the profitability of an export order almost overnight. While no business can control global trade policy, every business can control how well prepared it is. A few careful financial checks now can help protect your margins, your cash flow and your customer relationships, whatever happens next.
For a small, open economy like Ireland, international trade is essential, and many SMEs depend on customers in the United States, the United Kingdom and further afield. Even businesses that do not export directly can be affected if their customers or suppliers are exposed to new tariffs or trade barriers. Here are five financial checks we recommend for any Irish SME with international sales.
1. Understand Your True Exposure
Start by mapping exactly where your revenue comes from. What proportion of your sales goes to each overseas market? How dependent are you on a small number of international customers? Which of your products are most likely to be affected by tariffs or trade restrictions?
Look beyond your direct exports, too. If you supply an Irish business that sells into the US, or rely on imported materials that could become more expensive, you have indirect exposure that may be just as significant. Make sure your products are correctly classified for customs purposes and that you understand the rules of origin that apply, as these determine the duties charged and can affect whether your goods benefit from preferential treatment. A clear picture of your exposure is the foundation for every other decision.
2. Review Your Pricing, Margins and Contracts
When tariffs rise, someone has to absorb the cost. It may be your business, your customer or a combination of both. Review your margins on international sales and model how they would change under different tariff scenarios. Some products may still be profitable after a price increase, while others may no longer be viable.
Check your contracts and delivery terms carefully. The agreed Incoterms determine who is responsible for duties and customs costs, and a small detail in a contract can decide whether an unexpected tariff lands on your business or your customer’s. For new or renewed contracts, consider including clauses that allow prices to be reviewed if tariffs or duties change significantly.
3. Manage Your Currency Risk
Currency movements can have as much impact on export profitability as tariffs. If you invoice in US dollars or sterling, a shift in exchange rates can reduce the euro value of your sales before you have even been paid. Equally, if you buy materials in foreign currencies, rising costs can squeeze your margins.
Review which currencies you trade in and how much exposure you carry at any given time. Tools such as forward contracts can help you lock in exchange rates for future transactions, bringing greater certainty to your planning. Some businesses also reduce risk by matching foreign currency income with foreign currency costs. The right approach depends on your volumes and appetite for risk, but doing nothing is itself a decision with consequences.
4. Stress Test Your Cash Flow
Trade disruption often affects cash flow before it affects profit. Customs delays can slow deliveries, customers under pressure may take longer to pay, and you may need to hold more stock to protect supply. Each of these ties up cash that your business may need elsewhere.
Build a cash flow forecast that includes realistic worst-case scenarios. What would happen if your largest export market fell by a quarter, or if payments from overseas customers were delayed by an extra month? Review the credit terms you offer international customers and consider whether credit insurance would provide useful protection. Speaking to your bank early about working capital facilities is far easier when trading is stable than when pressure has already arrived.
5. Diversify and Use the Supports Available
Over-reliance on a single market is one of the biggest risks an exporter can carry. Consider whether there are opportunities to grow sales in other markets, including the EU single market, where Irish businesses can trade with hundreds of millions of customers without customs barriers. Reviewing your supply chain for similar concentration risks can also improve resilience.
Irish SMEs do not need to navigate this alone. Enterprise Ireland, Local Enterprise Offices and other State bodies offer advice, market research, training and financial supports to help businesses explore new markets and manage trade challenges. State-backed loan schemes may also help with working capital or investment. Many businesses are unaware of the support available until they ask.
Preparing for an Uncertain Future
Trade uncertainty is unlikely to disappear any time soon, but businesses that understand their exposure, protect their margins, manage currency risk, plan their cash flow and diversify their markets will be far better placed to adapt. Reviewing these areas now, and revisiting them regularly, turns uncertainty from a threat into something your business can manage with confidence.
At JDC Accounting, we help Irish exporters review their financial position, model different trading scenarios and plan with greater certainty.
If you would like to discuss your business, contact us on or email jonathanc@jdcaccounting.ie or visit jdcaccounting.ie.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.