LIFO Offerings

LIFOPro has been exclusively dedicated to providing a full range of LIFO solutions for over 30 years to companies of all sizes & in all industries. Our turnkey solutions allow companies to outsource all aspects of their LIFO calculation, documentation & reporting by engaging LIFOPro to manage this work within our firm using the LIFOPro software & our extensive LIFO knowledgebase. A LIFOPro software license allows companies to automate & manage in-house LIFO calculations, documentation & reporting. CPA firms use LIFOPro as a subject matter expert & partner with LIFOPro to help provide their clients with all their LIFO needs. We offer a range of complimentary offerings to both CPA firms & companies for those seeking analysis and/or review. Our offerings work for all dollar-value LIFO calculations & methodologies (excluding alternative LIFO method inflation calculations for auto dealers; LIFOPro provides complete solutions for auto dealers using the IPIC method).

Features & Benefits by Offering Type

Turnkey Outsourcing Solutions (LIFO calculation services)
- 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
  - Customized engagements built for your company's unique needs
  - Consulting services, including:
    - Pool combinations + splits
    - Changes in accounting methods
    - Bargain purchases
      - Bargain Purchase Discount Deferral – Analysis to determine whether additional LIFO deferral related to a bargain purchase discount may be possible and to make the calculations necessary if deferral is possible
  - 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
LIFOPro Software License
- Features
  - In-house LIFO calculation & documentation/reporting automation
  - Automates both aspects of the LIFO calculation, including:
    - Inflation calculation (front end)
    - LIFO reserve calculation, including LIFO layer history, LIFO inventory, reserve & expense (income) calculation
  - Internal index module includes a complete range of features & settings, including:
    - Double-extension (current vs. base year cost comparison) or link-chain (current vs. prior year cost comparison)
    - New item treatment, including new item cost reconstruction
    - Outliers & exceptions identification & treatment
    - Analysis & statistics reports, including inflation index calculation breakouts by product hierarchy (class)
    - Loading multiple data input files and/or sheets
    - Single or multiple pool calculation
  - External index module (IPIC module) includes a complete range of features & settings, including:
    - BLS table type (CPI or PPI)
    - Current & prior year appropriate month selection
    - Preliminary or final indexes
    - 10% method or non 10% method groupings
    - IPIC method or non-IPIC pooling method
    - Current vs. prior year balances by BLS category comparator report
    - Automated interim estimates using year to date inflation & prior year balances by BLS category
  - All reports can be printed/saved as Adobe PDF or Excel files
  - Can be installed on & be used by an unlimited number of users/devices
  - Can be installed on-premise & accessed via LIFOPro's private cloud
  - Includes unlimited training & support
- Benefits
  - Minimize time spent in-house managing LIFO calculation
  - Reduce reliance on IT department by eliminating the need to mange "home-grown" LIFO system
  - User-friendly software
  - Automates maintaining & generating complete set of LIFO reports, including over 20 different report formats
  - Guarantee calculation accuracy & eliminate errors
  - Simplify calculation policies/procedures & reporting
  - Increase reporting transparency & understandability
  - Easily & quickly make interim estimates & ad-hoc projections
  - Eliminate error-prone spreadsheet formulas & Excel schedules & replace them with standardized, user-friendly reports
- Complimentary Offerings

LIFOPro's Offerings Slide Deck

Sec. 473 Relief Estimate Request Form

Auto Dealer IPIC LIFO Case Study

2023 Top LIFO Opportunities & Strategies Guide

How LIFO Works: A Beginner’s Guide to LIFO

How to Identify Clients that are Good LIFO Election Candidates

How to Easily Implement LIFO

Complimentary Interim LIFO Estimate Request Form

Best LIFO Practices & Review

Auto Dealer LIFO Case Study

LIFO Election Benefit Analysis

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.

Offerings