- 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
LIFOPro strives to provide the highest quality of services at the most competitive prices, and we promise to provide an outsourcing solution that fits your budget. Fees listed below are general estimates.
Note: See Auto Dealer Outsourcing page for auto dealer fee schedule.
- IRS Forms preparation
- IRS Form 970 Application to Use LIFO Inventory Method & statement $ 400 – $ 900
- IRS Form 3115 Change in Accounting Method & statement $1,000 – $2,500
- Services Delivery and Timing: Earlier of the following two dates:
- Client’s requested LIFOPro report delivery deadline
- Within 1 week of receipt of the documentation requested by LIFOPro
- Terms
- Engagement Period: 1 year with optional annual renewal
- Recurring annual calculation service fee lock period: 3 years
Fee Ranges
- A range of fees are dependent on the total inventory balance of the client, the scope of the engagement and the expected recurring billable hours required to complete the engagement
- LIFOPro guarantees to match the fees quoted by alternative LIFO service providers
- Inflation calculation services (for internal indexes) & BLS category assignment services (for external indexes or IPIC method) are billed as separate line items from LIFO calculation & LIFOPro report delivery. Accordingly, these are optional service items, and clients wishing to minimize outsourcing fees can exclude these services from outsourcing engagement scope.
- Fixed recurring annual calculation service fee amounts will be provided within a fee quote and/or engagement letter once the required information has been provided to LIFOPro
- In most cases, fees quoted will be on the low end of the ranges listed above as LIFOPro will use all commercially available efforts to achieve the most efficient calculation procedures. The following documentation and/or document formatting will assist LIFOPro in minimizing the recurring fees:
- Files in Excel format (as opposed to PDF reports or Word documents)
- “Flat files” where each item’s information resides on a single line/row (as opposed to reports where item information is located on multiple rows; aka text wrapping)
- Existing inventory classifications or groupings (which often materially reduces the BLS category assignment fees for companies using the IPIC method)
- Fees quoted will likely be on the middle or higher end of the ranges listed above if material data manipulation efforts are required, such as:
- Converting scanned PDF inventory reports to Excel format (material data manipulation efforts typically not required if the reports are non-scanned PDF reports)
- Converting inventory reports containing item data on multiple rows into flat file
- Fee reductions will be applied in the following circumstances:
- If LIFOPro performs separate financial reporting (book) and tax LIFO calculation services. For example, if separate book & tax LIFO calculations are required where each calculation would be quoted on a standalone basis at $2,500/year per calculation (or $5,000/year total), it is common for LIFOPro to discount the combined fee to $4,000/year for both calculations.
- If LIFOPro performs multiple LIFO calculations for separate entities or locations
- Where clients with multiple entities/locations are agreeable to receiving a single LIFO report package (as opposed to requiring separate LIFOPro report packages for each entity/location)
