LIFO Calculation Services

Accounting, finance and tax professionals are often charged with the duty of completing LIFO calculations. Issues that frequently arise while working with LIFO include:

  • Time-intensive nature of calculating, documenting and reporting using the LIFO method
  • Inadequate LIFO books & record-keeping due to suboptimal LIFO methods being used
  • Manual spreadsheet LIFO calculation errors

LIFO Services for LIFO Professionals

The LIFO-PRO software features a robust platform that completely automates LIFO calculation, documentation and reporting tasks. It completely eliminates LIFO calculation errors from occurring. It was developed in-house by the leading LIFO CPA and LIFO-PRO company founder. LIFO-PRO’s team of accounting professionals utilizes the power of the LIFO-PRO software to provide quality, cost-effective LIFO solutions to our clients. More than 300 companies & over 60 CPA firms utilize LIFO-PRO’s services for all their LIFO needs.

LIFO-PRO’s services allow corporate professionals and CPA’s to reduce their LIFO tasks to:

  1. Book LIFO general ledger LIFO Reserve entries
  2. Tax LIFO IRS Form 1120 and/or 1125A line item entries

The exact amounts needed to record year end Book & Tax LIFO entries are contained within a single LIFO-PRO report.

LIFO-PRO’s Service Offerings

  • LIFO calculation services
    1. IPIC LIFO calculation services (CPI/PPI):
      1. Annual Book and/or Tax IPIC LIFO calculations
      2. LIFO report creation
      3. BLS CPI/PPI category assignments
      4. LIFO projections (i.e. provision estimates for quarterly reporting)
      5. Sec. 263A UNICAP cost calculations
      6. Reviewing BLS CPI/PPI category assignments (for companies that perform BLS category assignments internally)
      7. CPI/PPI category replacement for discontinued BLS categories
    2. Internal index LIFO calculation services:
      1. Annual Book and/or Tax internal index LIFO calculations
      2. LIFO report creation
      3. LIFO projections (i.e. provision estimates for quarterly reporting)
      4. Sec. 263A UNICAP cost calculations
  • LIFO consulting services
    1. LIFO election services (including IRS Form 970 preparation)
    2. LIFO method change services (including IRS Form 3115 preparation)
    3. LIFO scope expansion services (including IRS Forms preparation)
    4. LIFO repooling services (including IRS Forms preparation, if applicable)
    5. IPIC LIFO Method conversion services (including IRS Forms preparation)
    6. Pro forma LIFO calculation services:
      1. Pro forma IPIC LIFO Method calculation
      2. Pro forma LIFO election calculation
    7. LIFO training (BLS category assignment training, Best LIFO Practices, etc.)

Service Features

  • Year end Book & Tax IPIC LIFO calculations completed with the LIFO-PRO software
  • LIFO layer history maintained and updated in the LIFO-PRO software
  • Company’s year end LIFO-PRO reports delivered electronically
  • Separate Book & Tax LIFO reports provided (if applicable)
  • Unlimited LIFO projections provided at no additional costs

Service Benefits

  • Services and costs are scaled to fit your company’s LIFO budget & needs
  • Greatly reduce LIFO time commitments
  • Comprehensive, consistent & easy to understand LIFO reports
  • Services are compatible for all methods (internal index, IPIC CPI/PPI, link-chain, double-extension)
  • 100% accurate LIFO calculation
  • LIFO books & records are complete and intact
  • Focus on maximizing LIFO tax deferral, LIFO planning & forecasting instead of LIFO calculation accuracy & compliance
  • Summary reports contain all relevant LIFO data in one place
  • Eliminates having to reference prior year reports (LIFO carryforward report contains all prior year data in current year end LIFO report)
  • Superior LIFO report formats compared to alternative LIFO service providers
  • Allows users a standardized LIFO reporting & recordkeeping system
  • LIFO calculations/reports completed & sent to client within one-two weeks of year end inventory data being provided

How It Works & How to Get Started Sample LIFO Service Engagement Letter

LIFO Calculation Services Competitor Comparison

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