In terms of advantages, the CIF technique is less expensive than other ways for importing products. When renting a full ship for the carriage of products, it is more affordable to employ the CIF import method (FCL). Offering Cost, Insurance and Freight terms can make a seller’s offer more attractive to potential buyers, as it demonstrates the seller’s willingness to handle logistics and insurance. The seller is obligated to secure insurance for the buyer, but only for minimum coverage. However, the coverage provided under CIF may be limited, and the buyer may opt for additional insurance if necessary.

Simply enter a keyword and discover the information you’re searching for. KPMG’s transfer pricing services include compliance, planning, and dispute resolution to optimize the process of international transfers for multinationals. Buyer’s Input on InsuranceThe buyer is not obligated to insure the goods but must provide any information the seller needs to arrange additional insurance (if requested). Ben is passionate about International Trade, Import/Export, International Shipping and connecting world markets. For the last 14 years Ben has specialized in importing and exporting goods around the world, and creating software solutions to streamline the import/export process.

A9 (Allocation of costs)

DDP stands for Delivery Duty Paid and places more responsibilities on the seller’s side. With DDP, the seller is responsible for additional steps along with the shipment, such as loading at the destination point, transport to the final destination, and import customs clearance, duties, and taxes. The key distinction, however, is that all of the costs of potential loss or damage to products are taken on by the seller. As well, if the product ends up being subject to export paperwork, inspections or rerouting, or additional customs duties, the seller will also have to cover these extra expenses. If you’re shipping a container by sea, it might be a fit—but only if you understand what you’re actually agreeing to. It is not used for air freight, where other terms are more appropriate.

With CIF the seller arranges transportation so the buyer has little to no involvement. Yet with FOB, the buyer has much more flexibility and control to choose the carrier and negotiate shipping rates, which can help reduce costs. Transfer of RiskWith CIF, the seller has responsibility for the goods until they pass the ship’s rail at the destination port. From this point onwards, including through Customs, the buyer has responsibility for the goods. Conversely, with FOB the seller has responsibility for the goods until they pass the ship’s rail at the port of shipment.

Lift-Gate and Inside Delivery

• In the vast ocean of international trade, understanding the various Incoterms is crucial for smooth sailing.
• If the buyer wishes to keep the risk with the seller throughout transport, they should instead consider using DAP or DPU.
• Once the shipment arrives at the Port of Genoa, the responsibility shifts to the Italian company.
• It’s beneficial for buyers who have specific preferences for logistics providers and who can manage costs and risks from an earlier stage.

Learn what a foreign subsidiary is, how it operates, and why global businesses use them to expand internationally with legal protection. In this guide, we will try to explain the CIF term and clarify the scope of responsibilities for each party – the buyer and the seller. However, it’s essential to be aware of both its advantages and limitations. By doing so, you can make informed decisions that align with your business objectives. The latest Incoterms 2020 rules further refine these guidelines, making it even more critical to stay updated. Just as CIF holds particular relevance for sellers, it carries equal weight for buyers.

What is CIF (Cost Insurance and Freight)  Incoterms?

A seller would be prudent to not just state in the contract that they will provide an insurance document. Under CIF the seller has the advantage of being able to secure additional profit by securing insurance at a low cost and then including a higher charge for it in the selling price. This approach lets sellers leverage their market knowledge or bulk purchasing to obtain cheaper premiums, thus increasing their profit margin by adding a markup on the insurance cost charged to the buyer. These are the buyer’s responsibility because they occur after “delivery” by the seller. The seller has no obligation to arrange any transit/import clearances.

Is CIF suitable for all types of goods?

• They offer a blueprint for navigating the complexities of shipping agreements, insurance coverage, and risk management in global transactions.
• The extra shipping fees between the seller and the buyer can be minimized by using the CIF method.
• Buyers and sellers must agree on the exact location where the goods will be delivered.
• Do you regularly take part in international trade or deal with foreign entities?
• Cost, Insurance, and Freight (CIF) is a widely used shipping term that benefits both buyers and sellers by clarifying responsibilities and simplifying the logistics process.
• Weigh and measure your goods before you ship to avoid these charges.

In CIF, the risk transfer occurs at the loading point, and the seller is not responsible after that. In both agreements, the seller is responsible for any loss or damage along the journey. cost insurance and freight meaning However, DDP places no obligations on the seller to obtain insurance. The agreement only applies to the goods that are transported via the ocean, sea, or waterway. When a buyer purchases goods that require this transportation, they are exported to the port that’s outlined in the sales contract. The CIF freight meaning often results in higher overall costs for the buyer.

Plan to send fewer loads or combine them to save money on fuel fees. Rail is cheaper for long trips but trucks are needed to bring goods to and from the train. Our platform allows you to compare door-to-door freight quotes for various shipping methods, including sea freight. This helps you make informed decisions about your shipping options under CIF or alternative terms. The seller is responsible for delivering the goods as per the contract specifications and providing all necessary contractual documents. This may include the commercial invoice, packing list, and certificate of origin.

Browse Glossary Term

Get details for shipping and logistics services across the country, helping businesses save more. Pazago’s real-time tracking tools provide sellers with complete visibility over their shipments, enabling them to anticipate delays, reroute if necessary, and update buyers proactively. If you’ve ever skimmed through an international shipping invoice and felt confused by cryptic three-letter codes.

It’s worth understanding that CIF varies from cost and freight (CFR), which has similar responsibilities, but the seller doesn’t have to purchase marine insurance. There can be many different types of international shipping agreements. Once loading is complete, the store assumes the risk of loss rather than the customer. In exchange, the customer has paid for insurance and freight fees up until the ordered items arrive at the buyer’s port of destination. This insurance is based on the minimum coverage, which is the commercial value of the product, plus 10 %. The seller is also responsible for any export documentation and export licenses if needed.

Weigh and measure your goods before you ship to avoid these charges. Freight payment methods decide who pays for moving goods, when they pay and to whom they pay. The Incoterm clearly defines where the transfer of risk occurs and which party is responsible across all stages of the journey. Typically, insurance companies tend to hold out on paying claims if they can help it, and the potential language barrier might mean the buyer may have to go through some hassle for the claim to succeed. However, the CIP Incoterm might be a better option for higher-value goods. Typically, the CIF Incoterm places more responsibility on the seller’s side and is akin to a Delivered Duty Paid (DDP) Incoterm.

This program opens doors to a variety of opportunities, from becoming a CPA to advancing in corporate finance. Most states require between eight and eleven accounting classes (24 to 33 accounting credit hours) in order to be qualified as a Certified Public Accountant (CPA). Because the accounting concentration requires only six accounting classes (18 credit hours), in addition to ACCT1021 Financial Accounting (3 credit hours) included in the CSOM core, a student must take additional accounting classes. The department offers a bookkeeping boston number of accounting electives that students can take to satisfy their CPA requirements.

Mazars USA LLP

Connecting with students and getting to know them individually is one of her daily key goals. Johanna is a certified Public Accountant and obtained her MBA at the University of Wales, Cardif (UK). She has lived in four different countries, is bilingual in English and Spanish, and loves to embarrass herself with her rudimentary French and Arabic. Raphael and Raphael features a full slate of business advisory services, which can be utilized to create value and actionable strategies for organizations in a range of industries. This is important because it ensures efficiency, cutting-edge solutions, and an innovation-driven approach to accounting and tax issues. As part of the quest to create value for clients and go beyond the basics of accounting, Gray, Gray & Gray also creates original educational resources that can provide extensive value for clients.

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Contact Cherry Bekaert today and let us help you reach your financial goals. The mission of the accounting department at Questrom is to provide exceptional education, foster leadership, and advance the field of accounting through innovative research and community engagement. A number of post school qualifications may be used for admission and/or advanced placement into the degree programme with due regard for the 50% credit transfer rule and guidelines of progression and articulation. For example, a Higher Certificate in Accounting, NQF (HEQSF) Level 5, minimum Credits 120; or a Diploma in Accounting, NQF (HEQSF/OQSF) Level 6, minimum Credits 240 or 360. O’Connor & Drew, PC, in Braintree, helps people from Boston and throughout the area who are seeking accountancy services.

Real Estate & Construction Industry Solutions

• We have built our reputation by providing high quality service that is reflective of the high standards we demand of ourselves.
• Apply to register at any Boston City Campus Learner Support Centre nationwide.
• They consider every aspect of the financial picture, ensuring that their recommendations and advice are comprehensive and beneficial in the long run.
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• This relies on service continuity, meaning once you partner with a team at this accounting firm in Boston, you’re going to continue working with that team.
• What truly sets Michael apart from other accountants is his ability to simplify complex financial concepts.

We ignite growth through digitally enabled, industry-led solutions based on our Client Promise. Our forward-thinking strategies and innovative processes are designed to propel your business forward. At Cherry Bekaert, we understand the diverse landscape of our clients, which includes multinational corporations, private businesses, nonprofit organizations, governmental entities, emerging firms, start-ups and successful individuals. Our mission is to empower you to achieve your organizational goals and financial objectives. An Accounting degree prepares you for careers in Accounts Receivable Outsourcing financial reporting, auditing, tax planning, and more.

If you’re looking for an accountant who knows their stuff and delivers exceptional service with a smile, look no further than Lindsay CPA LLC. It’s evident that they have a deep understanding of the accounting field and are committed to providing the highest level of service. I was impressed by their attention to detail and thoroughness in handling my financial matters. From the moment I contacted them, cash flow they were incredibly responsive and attentive to my needs. It’s refreshing to work with professionals who value their clients’ time and understand the urgency of financial matters. What truly sets Michael apart from other accountants is his ability to simplify complex financial concepts.

Your advisor can look for opportunities to do this throughout the year. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.

Understand your investment options

Passive investing is the equivalent of an airplane on autopilot. You’ll still get good results over the long run with nothing more than some occasional maintenance or adjustments. Passive investing involves putting your money to work in investments where someone else does the hard work. Active investing means taking time to research your investments and constructing and maintaining your portfolio on your own. Investing refers to the practice of putting your money into an asset with the goal of making more money. To name a few examples, buying stocks, investing in a rental property, and even putting money into a certificate of deposit at your bank are all forms of investing.

Corporate investing

• You may be subject to both taxes, but not on the same type of income.
• This is a particularly effective strategy to reduce capital gains taxes.
• From there, you’d pay at the 15 percent level, until your total income passed $583,750 and so on, as before.

A potentially bigger risk is how you react to those fluctuations. Many investors find it difficult to stick to their investing plan, particularly during market movements. If stocks are outperforming other assets, for example, it can be easy to think you should add more stocks to your portfolio. But then when stocks fall, you’re going to take a much larger hit than you would have had you stuck to your original plan. A diversified portfolio is a great tool to help manage your emotions and maintain your investment plan.

Take advantage of lower long-term capital gains rates

The Internal Revenue Service (IRS) taxes investment income differently than income from wages. The tax rates and the timing of when taxes are due are both different. Municipal bonds and municipal bond funds, like their taxable counterparts, come with different levels of interest-rate sensitivity and credit quality. For short-term goals, a high-quality, short-term municipal bond fund might be a suitable option. For longer-term goals, a longer-duration or lower-quality fund might be more appropriate. The handful of tax-exempt investments out there are fixed-income securities, like municipal bonds.

Since Inception returns are provided for funds with less than 10 years of history and are as of the fund’s inception date. 10 year returns are provided for funds with greater than 10 years of history. These are the primary rules investors must work around to minimize taxes owed and maximize profit.

The bottom line on investing

When you take distributions from the account after age 59 ½, you’ll pay taxes on any withdrawals. Effectively, you can defer investment profits for decades while you work. While money market funds offer a safe haven for your cash, they generate lower returns than other investments like stocks, so consider your goals before investing. Factors like the fund’s expense ratio, the types of securities it holds and its credit quality should all be taken into account. But there are plenty of other ways to minimize taxes in your portfolio, including using tax-advantaged retirement accounts and strategically selling investments at a loss in order to offset capital gains.

• Whether you’re a new investor just starting out or a seasoned investor with large account balances, tax-saving strategies can help you build and retain wealth.
• If you’re expecting a windfall from the IRS this year, one or more of these 7 smart options for investing your tax refund could be the perfect fit for you.
• The investment landscape offers numerous options, each with unique characteristics, risk profiles, and potential returns.
• A 401(k) plan is a savings vehicle that allows you to save for retirement with a few tax perks along the way.
• There are a number of tax-efficient investments that investors should explore to reduce their tax burden and maximize investment returns.

In general, the bond market is volatile, and fixed income securities carry interest rate risk. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

This makes them especially attractive to investors in places with high state tax rates, such as Massachusetts and California. A specific type of money market fund — a tax-exempt money market fund — is particularly attractive to investors in higher tax brackets. These funds invest at least 80 percent of assets in municipal bonds, and, as we discussed earlier, interest income from municipal bonds is generally exempt from federal income tax. Retirement accounts may allow for tax-free contributions or tax-free withdrawals in retirement. Stocks have significant potential for growth, and any income you derive from them is usually taxed at a lower capital gains tax rate instead of your personal income tax rate.

Start with debts with the highest interest rates; eliminating these will save you the most money in the long run. If you don’t have any credit card debt, use your tax refund to reduce your car or student loan debt. You can maximize your tax refund in several ways — from paying off high-interest debt to investing in a business or saving for retirement. Investing is not gambling, and the reason to invest rather than go to a casino is that prudent, patient, and disciplined investing is how most investors get ahead. Retail investors should make sure they thoroughly understand futures before investing in them. The price of a commodity can move sharply and abruptly in either direction due to sudden events.

Municipal bonds are generally exempt from federal taxes, and purchasing tax-free munis in the state in which you reside can also provide state and local tax exemption. Since other bonds may not be as tax-efficient as tax-free municipal bonds, it can how to invest tax make sense to hold municipal bonds in taxable brokerage accounts while placing other bonds in tax-advantaged accounts. A Roth conversion is a tax-saving strategy where investors convert their traditional IRA into a Roth IRA, enabling them to withdraw funds in retirement tax-free. To convert a traditional IRA to a Roth, investors will pay taxes in the present on the converted balance, earning them tax-free growth. This strategy is relevant to investors whose income is above the IRS limit for Roth IRA contributions.

The CPA Journal is a publication of the New York State Society of CPAs, and is internationally recognized as an outstanding, technical-refereed publication for accounting practitioners, educators, and other financial professionals all over the globe. Edited by CPAs for CPAs, it aims to provide accounting and other financial professionals with the information and analysis they need to succeed in today’s business environment. The path became clear after a conversation with Paul Young, CPA, CGMA, senior executive vice president and CFO of Connecticut-based Liberty Bank. Young was the first to sign on for the new registered apprenticeship program for finance business partners that the U.S.

Taxation

This is particularly valuable in specialized areas like tax compliance, where firms using advanced automation can handle more returns during tax season without increasing staff size. The resulting capacity allows firms to maintain service quality during peak periods without the traditional stress on personnel and systems. IPA adoption also has important talent implications, especially among younger professionals less interested in the repetitive work that has traditionally made up much of a young accountant’s workload. By automating mundane tasks, firms create more engaging roles centered on problem-solving and client interaction, making accounting careers more attractive. What makes IPA particularly attractive for accounting professionals is its ability to execute the judgment-intensive processes that characterize modern accounting work.

• A federal appeals court extended its stay of a nationwide injunction on tariffs imposed by a trade court and proposed a schedule that would include oral arguments on July 31 in the challenge to the president’s authority.
• As the pipeline dries up, 83% of senior leaders report a talent shortage this year, up from 70% in 2022, with 10% this year saying it’s worsening, according to a CFO Pulse report released on Aug. 6 by accounting solutions provider Personiv.
• “But over 15 or more years, pay stagnated; accounting salaries went from being the highest or among The highest to below the median,” said Taylor, an NPAG member.
• The July webcast explored proposed revisions to the fraud auditing standard, evolving frameworks for AI assurance, and recent developments affecting not-for-profit financial reporting.
• Researchers determine the real difference that generative AI can have on the average accountant in terms of time spent on routine data entry versus time available for client support and billable hours.

The majority of companies represented in a survey said they plan to pass along most, if not all, costs created by tariffs to their customers. In this Journal of Accountancy-branded podcast, a senior wealth strategist and managing partner share advice on how to initiate conversations with business clients about transition and succession planning. The organizations, on behalf of CPAs, responded to a request for feedback from the California Air Resources Board with recommendations related to guidance on the reporting and assurance requirements of recent legislation. An author of the JofA’s Professional Liability Spotlight column explains why the answer to the question “Should I disclose my use of generative AI to clients?

• The system can recognize changes in tax law and client circumstances, suggesting adjustments accordingly.
• Jason Marx, CEO, Wolters Kluwer Tax & Accounting, offers advice for firms looking to grow their business.
• In this Journal of Accountancy-branded podcast, a senior wealth strategist and managing partner share advice on how to initiate conversations with business clients about transition and succession planning.

AICPA & CIMA Business Resilience Toolkit — levers for action

Commissioner Billy Long explained his management philosophy at the 2025 Tax Summit of the National Association of Enrolled Agents, where he said IRS employees will be able to implement the OBBBA’s tax provisions. In a notice issued Tuesday, the IRS said it intends to partially withdraw proposed regulations and issue revised proposed regulations. The already growing firm agrees to a “significant minority investment” from New Mountain Capital, an active player in the growing world of private-equity investment activity among large firms.

Calculating AI’s impact on CPAs: New study quantifies time savings

Engaging a CPA to conduct a SOC 2 examination is one of the most effective ways to mitigate risk and protect sensitive information. Accounting firms and finance departments can implement an IPA solution that combines RPA with machine-learning capabilities to transform the audit workflow. The system can automatically retrieve client financial data from various sources (e.g., ERP systems, banking platforms, and spreadsheets), normalize it, and perform preliminary analytical procedures.

AICPA unveils new QM resources to help firms meet Dec. 15 deadline

Automated processes follow consistent protocols, reducing the likelihood of human error in calculations or regulatory filings. Improved audit quality will support auditors in meeting GAAS and PCAOB standards, while also helping their clients or employers better comply with GAAP requirements. These improvements not only protect firms and companies from potential liability but also enhance client and executive confidence in the reliability of financial information.

Discover how a one-day University of Memphis program empowers nontraditional accounting students to stick with their major and embark on accounting careers. The bipartisan bill would make accounting part of STEM, a federally funded program for science, technology, engineering, and mathematics education. An AICPA leader focused on the accounting talent pipeline reminds established CPAs of their role in helping to grow the profession. This implementation can reduce compliance penalties and help the tax department shift from reactive filing to proactive planning.

While mean starting salaries for majors like computer science and mathematics and statistics increased about 20% and 26%, respectively, accounting bachelor’s degree holders’ mean starting salaries rose about 16%. During the same period, the Consumer Price Index climbed 19.8%, meaning that accounting graduates saw a decline in earning power. Two Boise State University accounting professors created a podcast series to attract new talent by taking students on professional journeys. Interest accounting articles globally is also rising, according to a survey of nearly 300 business schools. U.S. companies rank ahead of the pack when it comes to obtaining assurance but behind the pack when it comes to depending on audit firms.

At Connecticut-based Liberty Bank, Paul Young, CPA, CGMA, senior executive vice president and CFO, decided to establish a new, unconventional pathway at the bank to attract and retain talent interested in an accounting and finance career. Starting salaries that are not competitive are among the biggest contributors to the talent shortage in accounting. NPAG’s national survey identified raising starting salaries as the most effective tactic to encourage people to choose an accounting career — 84% of professionals and 85% of students agreed. For multinational corporations, an IPA solution can help with continuous monitoring of changing tax and regulatory requirements across multiple jurisdictions.

The AICPA updated its SQMS No. 1 practice aid, released a new resource on monitoring and remediation, and is hosting live webcasts to help firms implement the new quality management standards by Dec. 15. Key features of the 2025 practice aid on complying with SQMS No. 1 include expanded discussions, tailored guidance for firms of all sizes, and tools for documentation, evaluation, and effective compliance. A Globally, the trend most likely to impact how firms achieve their revenue growth goals centers on the pace of technology advancements and digital transformation.