As the economy rebounds from the COVID-19 pandemic, CFOs industrywide face higher expenses and demand, coupled with a growing backlog of services and workforce shortages, according to The Wall Street Journal.
The environment has pushed U.S. inflation to its highest point in 13 years, according to the Journal. Years of low cost increases have left many CFOs with limited experience in dealing with inflation.
Five strategies CFOs are using:
1. Forecasting and planning. CFOs can get a better grasp on how rising expenses for supplies and wages may play out over quarters through an inflation forecast.
2. Raising prices. When deciding whether to raise prices, CFOs must ensure the changes match competitors and can cover future expenses appropriately without sticking consumers with successive price hikes, according to the Journal.
3. Streamlining operations. CFOs can control expenses by making the right cuts and reallocations that result in lean operations.
4. Pushing sales. CFOs are turning their attention to particularly lucrative business lines to grow revenue and cushion their bottom lines, according to the Journal.
5. Buying when the time is right. Buying goods and materials when the price is low is an opportunity that can help CFOs limit the effects of inflation.