Inflation is a financial phenomenon that occurs when there is a consistent increase in the prices of goods and services. Higher inflation rates mean that the purchasing power of money decreases, leading to a significant impact on a business’s cash flow. As an accounting and finance manager, it is essential to take a proactive approach in battling inflation instead of just waiting for its impact to hit your bottom line. In this blog post, we will discuss three strategies that your company can implement to produce a solid plan to attack inflation.
Harmonic Filtering: Harmonic filtering is a technology that reduces the amount of non-linear load electric energy drawn by the equipment. This technology filters out the harmonic current flowing through the electrical systems that leads to energy waste, leads to excess heat and distortion in equipment and damages installations. Implementing harmonic filtering can reduce energy consumption. Thus, it reduces operational costs, positively affecting inflation.
Nanobubbles: Nanobubbles technology can improve the energy efficiencies of cooling and heating systems, contributing to a reduction in energy consumption, which lowers operational costs. This technology uses nanoscale air bubbles distributed in the fluid to improve the effectiveness of the heat exchange. The efficiency created by the nanobubbles technology means that the overall running cost can be reduced, making the technology an excellent example of a strategy that can tackle inflation in your business.
Load Management: Load management helps in managing energy consumption by helping businesses with better energy management, reducing overall energy demand, and electricity bills. With fluctuation supply, energy (renewable or not), such as wind, solar, hydro, or coal, irregular demand throughout the day. Load management technology can switch energy use to a period when the rates are lowest. It can also use the excess energy generated by renewable sources to reduce energy bills during peak times.
Energy Deregulation: Energy deregulation refers to the process of allowing multiple energy suppliers to compete to provide energy services. This competition lowers energy rates, making it easier for businesses to reduce their energy bills. In addition, deregulation encourages innovative technologies, services, and products that support energy efficiency, your business could benefit from this strategy.
Re-evaluate Technologies Implemented Due to COVID measures: Many companies adopted new technologies as a response to the pandemic, such as remote working and video conferencing. The implementation of such technologies led to significant operational cost savings and could be integrated into regulatory structures to maintain those savings in cost. It would be good to review the possible permanent retention of some COVID measures to maintain cost savings and improve productivity.
To combat inflation, your company must take proactive measures. These measures start with implementing cost reduction strategies like harmonic filtering, nanobubbles, and load management. Additionally, take advantage of energy deregulation and evaluate recent technologies implemented because of COVID measures. When implemented effectively, these strategies can significantly decrease operational costs and increase your company’s bottom line, thereby positively impacting inflation. As an accounting and finance manager, your company’s progress requires forward-thinking strategies that include financial measures capable of mitigating current and future inflationary risks.