™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what FIFO means. If we can be of more help explaining whatFIFO is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657 (888-55Books)™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what FIFO means:

Financial Accounting Standards Board.The FASB is the US regulator of financial accounting rules and regulations for US publicly traded companies.

First In First Out. FIFO is a method for tracking the value of inventory.

With the use of FIFO, the cost of goods sold is based on the cost of the oldest inventory on record.

For most assets, the oldest inventory is the cheapest.

As a result, the FIFO inventory method causes the lowest value for Cost of Goods Sold, the highest income levels, the highest taxes, and the lowest value for the remaining inventory reported on the balance sheet.

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