Government regulations in recent years have placed requirements on companies that could get them into hot water if they don’t pay close attention to the supply side of their balance sheets. At one end of the spectrum, the more tangible side, the on-demand economy means that if even minor parts aren’t delivered as they’re needed, things like industrial production lines could come to a costly halt. At the other end of the spectrum, with potentially greater financial impact, the Sarbanes-Oxley legislation requires that a company account for all future planned transactions, and agreements putting future obligations on them, such as whatever will involve future financial performance.

Think about it. You may have a building containing several heavy machines that run virtually all day, every day. A simple delay in receiving a shipment of filters could bring all of your production/automation to a standstill. You don’t want to keep a huge inventory of parts, preferring to adhere to the “just in time” delivery concept, and yet if the company that supplies you has delays on their own end, then your machines suddenly sit idle and you lose money. This is one of the risks of being dependent on this type of supply chain. And think of the catastrophe that could potentially ensue if this sort of last minute delay were to occur with crucial health products.

But there are certain off-balance sheet liabilities, another aspect of the supply chain that is more “potential” than tangible. Sarbanes-Oxley dictates that even the costs of your agreements, commitments, guarantees and other planned future transactions need to be taken into account, so that you have all aspects covered. What is required then, to keep track of this net liability and ensure that the company’s actual financial health can be accurately assessed, is a liability professional who specializes in this type of accounting. A whole industry of such specialists has sprung up in recent years, in response to Sarbanes-Oxley and other such legislation.

You can now acquire risk management software products that are capable of keeping track of such intangible liabilities as future timed commitments and obligations from agreements. The same programs can enable you to calculate for changes in supply and demand, so you can keep inventory costs down, but not end up in an emergency situation if supplies are delayed. What is important is to stay on top of your production costs, both tangible and slightly less so, at the same time complying with all pertinent government regulations.

If it is insurance that you need, Rene Lacape is the person to look for. He has been in this field for many years and is still in counting. He has dealt with many clients and is proud to say that all of them are very satisfied. If you need him, check his website so you can call him now.