LIFO Turnkey Outsourcing Solutions Services

Features & Benefits
- Features
  - All tasks related to LIFO calculation & documentation/reporting outsourced to & managed by LIFOPro using our proprietary software & knowledgebase
  - All clients receive electronic LIFOPro report package containing comprehensive calculation documentation, including all LIFO-related financial reporting & tax return figures
  - Flexible engagement structures to include supplemental services, such as:
    - Interim estimates
    - Multiple calculations & combined reports for consolidated groups
    - Separate calculations for financial reporting & tax (for differing book/tax base years and/or methods)
    - Bureau of Labor Statistics Consumer/Producer Price Index category assignments (BLS CPI/PPI; aka IPIC method or external indexes)
    - Reports including Sec. 263A UNICAP costs
  - Includes up to 40 hours of IRS audit support
- Benefits
  - Avoid all the hassles of LIFO while preserving tax deferral/savings
  - Avoid the need to maintain in-house LIFO expertise and/or resources & reduce administrative/IT burden by partnering with the LIFO experts
  - Eliminate error-prone spreadsheet formulas & Excel schedules & replace them with standardized, user-friendly reports
  - Guarantee calculation accuracy, eliminate errors & audit risk
  - Increase reporting transparency & understandability
  - Simplify calculation policies/procedures & reporting
Best LIFO Practices & Review (for companies already on LIFO)
- Optional complimentary offering for companies on LIFO in the form of a report that includes the following sections:
  - Calculation review
  - Methods compliance review
  - Best LIFO practices review
  - Pro forma calculations to compare LIFO reserve of present vs. alternative submethodologies
  - Calculation policies & procedures review
  - Change recommendations & implementation steps
- Benefits include:
  - Learn about potential strategies for maximizing tax savings from LIFO
  - Detect/prevent past/future calculation errors
  - Identify potential audit exposure risk & how to eliminate/minimize it
  - Get recommendations for LIFO Submethods optimization
  - Get recommendations for simplifying calculation policies & procedures
  - Get straightforward solutions for implementing recommended change
How it Works
LIFOPro Reports
- All clients receive LIFOPro PDF report package containing comprehensive documentation of the LIFO calculation, including all amounts required to record LIFO-related journal entries & present LIFO-related figures on financial reports & tax return
- Report package generated from LIFOPro software & includes the following applicable reports (also available in Excel format):
  - LIFO calculation reports
    - Current year LIFO calculation summary (Report 18)
    - Current year LIFO reserve calculation proof (Report 18a)
    - LIFO inventory history summary (Report 16)
    - LIFO layer history proof (Report 16a)
    - LIFO inventory history detail (Report 17)
  - Inflation calculation reports
    - Internal Indexes
      
      Current year index calculation summary (Report 27)
      
      Current year index calculation detail (Reports 27a & 27b)
      
      Missing item cost exceptions detail (Report 28a)
      
      Price change outliers detail (Report 28b)
      
      Data input statistics (Report 29)
      
      Inflation by product hierarchy (Report 30)
    - External Indexes (IPIC CPI/PPI)
      
      Current year index calculation summary (Report 23S)
      
      Current year index calculation detail (Report 23)
      
      Category inflation index calculation detail (Report 24)
      
      Discontinued/replaced BLS categories (Report 25)
      
      IPIC pooling method 5% test proof (Report 26)
  - Supplemental reports
    - Projections (Report 1)
    - Consolidated reports multiple entities
    - Reports including Sec. 263A UNICAP costs
    - IPIC CPI/PPI comparator report
    - Schedule M adjustment & LIFO expense breakdown reports
Service Organization Control (SOC) Report
- Independent CPA firm issues SOC 1 Type 2 report to LIFO-PRO annually (formerly known as SAS 70 Report)
- Prepared in accordance with AT-C section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting
- Report on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives included in the description throughout a specified period
- Provides clients & their CPA firms our independent auditor’s annual report on controls & service procedures in place & software used by LIFOPro
- Providing auditors with this report could reduce substantive testing related to LIFO calculation
- Copy of this report is available to LIFOPro clients & their auditors/CPA firms
Pricing & Terms
- Pricing is based on company size & engagement scope
- Terms are for a one-year period & are free of multi-year commitments
- Recurring annual fee is guaranteed to remain the same for at least 3 years
- LIFOPro reports delivered electronically including comprehensive documentation of all LIFO amounts required to record adjusting general ledger & tax return entries (all reports can be delivered as either Excel/PDF files)
- Also includes:
  - Up to three interim LIFO estimates for companies using external indexes (using most recently published BLS inflation indexes & prior year end product mix & inventory balances)
  - Unlimited report revisions
  - Up to 40 hours of GAAP & IRS audit support
  - Copy of LIFOPro’s annual SOC 1 Type II report
  - Customized supplemental services requested by client
How to Get Started
Ready to get started today? Send the required documentation listed below to receive your complimentary Best LIFO Practices & Review Report, a sample LIFOPro report package & fee quote.
- Best LIFO Practices Review & turnkey outsourcing solutions fee quote documentation
  - LIFO layer history/carryforward schedule from last two periods closed
  - Inflation index calculation documentation from the last period closed (also known as item detail, stock status or inventory valuation report)
  - Product hierarchies (if available)
  - LIFO calculation policies & procedures documentation (if available)
  - Any other schedules/documents not listed above used to complete prior year LIFO calculation
  - See our documentation request listing here: Review & fee quote documentation request
  - Send documentation to LIFOPro@LIFOPro.com or upload here: https://spaces.hightail.com/uplink/LIFO-PRO
  - LIFOPro will email review report, fee quote & sample LIFOPro report package within one week of receiving above documentation (LIFOPro will also contact you to schedule a time to discuss engagement options, documentation requirements, expected/required receivables/deliverables timing)
Learn More

Want to learn more about our turnkey outsourcing solutions? Schedule an introductory call or Teams meeting with LIFOPro by calling 402-330-8573, emailing lifopro@lifopro.com or using our online scheduling tool by clicking here: Schedule Call With LIFOPro

Turnkey Outsourcing Solutions Slide Deck

Turnkey Outsourcing Solutions Process Flow Chart

Turnkey Solutions Fee Quote Documentation Request Listing

Sec. 473 Relief Estimate Request Form

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Complimentary Interim LIFO Estimate Request Form

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Downloads

Get information about LIFO-PRO’s offerings, valuable guides & white papers & sample LIFO reports!

IPIC LIFO Guide

Get educated on the Inventory Price Index Computation (IPIC) method, including the origins, advantages & disadvantages, calculation procedures, options & much more!

Service Organization Control Report

Learn how LIFO-PRO receives an annual review of our policies & procedures to provide required assurances to our clients.

LIFO Tax Benefit Calculator

Calculate the potential tax savings from using LIFO & determine your company’s historical inflation percentages!

Secure File Upload Portal

Here you can send us all files needed for us to seamlessly give you the best LIFO results possible. We look forward to working with you!

CPA Firm LIFO Opportunities & Training Guide

Learn about LIFO opportunities abound for CPA firms, how to increase the scope of your LIFO offerings & learn how to easily identify good LIFO candidates!

Interim Estimate Options

Learn how to easily make interim LIFO estimates manually or within our software!

Non-disclosure Agreement Request Form

Get a NDA generated electronically in less than a minute using LIFO-PRO’s online request form page & avoid having to print, sign & scan a paper NDA!

IPIC LIFO Resources

Learn how the IPIC LIFO Method works, find valuable Bureau of Labor Statistics (BLS) links and stay up to date on all changes related to the IPIC Method!

LIFO Success Stories

Learn about LIFOPro’s past roles in partnering with companies & CPA firms to deliver great value by finding solutions to the most challenging LIFO issues!

IPIC LIFO Overview

The Inventory Price Index Computation (IPIC) method allows taxpayers to use published external indexes to calculate inflation for the purpose of valuing LIFO inventories.

LIFO Methods, Rules & Regulations

Your comprehensive resource for authoritative LIFO guidance, LIFO election requirements, and method alternatives!

Supermarket Physical Count Procedures

Find helpful information on how IRS regulations effect grocery LIFO Count Procedures for CPI & PPI taxpayers on our Supermarket Count Procedures page.

Special Challenges for Supermarkets

Supermarkets face LIFO calculation issues unique to the industry. Find out why & answers to how they are dealt with Special Challenges for Supermarkets page.

Why the Double-extension LIFO Index Calculation Method is Unreliable

Facts describing why the double-extension LIFO index calculation method is unreliable and examples proving how this method creates unpredictable results.

Addition of Services Table 9 Codes

Find recent important changes & BLS addition of Table 9 Wherever-provided Services & Construction PPI Indexes & Important Change in PPI Code Structure page.

CPI Category Updates

Find information on CPI Category Changes & Bureau of Labor Statistics Consumer Price Index update information such as new medical commodity codes here!

PPI Category Updates

Learn IRS Regulations Requirements for missing PPI Indexes, procedures for reassigning discontinued PPI Categories at LIFO-PRO’s PPI Category Changes page.

Producer Price Index Usage by Supermarkets to Increase Tax Deferral

Learn how drugs, non-foods & food/beverage indexes cause increase LIFO tax benefits at our PPI Index Usage by Supermarkets to Increase Tax Deferral page.

BLS CPI & PPI Inflation History

Get the most up to date Bureau of Labor Statistics Consumer & Producer Price Index inflation data from LIFOPro!

IPIC LIFO Advantages

Switching from the double-extension to link-chain method? Want to achieve higher possible inflation indexes? Learn more at the IPIC LIFO Advantages page.

LIFO Repeal Updates

Get the latest LIFO repeal updates including the latest news on corporate tax reform at LIFO-PRO’s LIFO Repeal Updates page.

LIFOPro Videos

LIFO-PRO Company Overview – Quick 1 minute video explaining LIFO-PRO’s service and software offerings.

Request Forms Page

Request a software trial, LIFO Election Benefit Analysis, Best LIFO Practices Methods Review or cost estimate. All of our requests are complimentary & free of obligation!

FAQ’s

View some of our frequently asked questions to learn more about LIFO

LIFO Glossary

Accounting and financial professionals who work with LIFO need to understand the jargon associated with LIFO. Below are a number of LIFO-related terms.

What Makes a Good LIFO Candidate?

Get answers to who should use the LIFO method, how much LIFO may benefit your company or client & good LIFO candidates by industry & principal business activity along with historical inflation data.

How LIFO Works

Hundreds of companies & CPA firms utilize our LIFO outsourcing solutions or the LIFO-PRO software for turnkey LIFO solutions.

Turnkey Outsourcing Solutions

Features

Benefits

Learn More or Get Started

Schedule a Call or Demo

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Non-disclosure Agreement

Get a Complimentary LIFO Election Benefit Analysis Today

Resources