LIFO for Retailers

Whether you’re a retailer of groceries or plumbing supplies, all retailers have the opportunity to save money long term with LIFO. Removing the negative effects of inflation, you can pay less in tax and create cash for investment by implementing the LIFO inventory method. Any business with over $1M in inventory that is experiencing price increases in goods purchased for resale is a qualified candidate for electing LIFO.

A retailer of recreational and all-terrain vehicles has grown their LIFO reserve to over $350,000 in just two years of utilizing LIFO. That’s over $125,000 in cash that they’ve been able to reinvest in their business to continue to grow.

A large manufacturer of trailers added their retail sales division with $16M in inventory to LIFO and saw a first year LIFO reserve of $375k, and that reserve doubled the second year. They were thrilled not only to pay less tax, but at the ease of computing the LIFO reserve in a quick manner.

An analysis of LIFO benefits is seamless and is provided at no cost to you. Just send a copy of your year beginning and year ending inventory files, including unit costs, and we’ll provide a free estimate of benefit and a price quote for the project. Retailers of all types are taking advantage of LIFO.