4 posts tagged with "Expenses"

If you've heard the term "per diem" tossed around in business conversations but aren't quite sure what it means or how it applies to your company, you're not alone. This Latin phrase, which translates to "per day" or "for each day," has important implications for how you manage both your workforce and business expenses.

As a small business owner, understanding per diem can help you make smarter hiring decisions and streamline your expense management processes. Let's break down everything you need to know about per diem in business contexts.

What Does Per Diem Mean?​

At its core, per diem simply means "by the day." In business, this term applies to two distinct scenarios:

1. Per diem employees – workers who are hired on a daily, as-needed basis
2. Per diem reimbursements – daily allowances provided to employees for business travel expenses

Both applications can offer significant advantages to small businesses when used strategically.

Per Diem Employees: Flexible Workforce Solutions​

Unlike traditional full-time or part-time employees who work regular, ongoing schedules, per diem employees are brought in on a day-by-day basis when additional support is needed.

When to Use Per Diem Workers​

Small businesses typically hire per diem employees in several situations:

Covering gaps in coverage – When regular employees are out sick, on vacation, or taking personal leave, per diem workers can step in to maintain operations.

Managing unexpected staffing shortages – If an employee leaves suddenly or you're between hires, per diem staff can bridge the gap.

Handling seasonal demands – During busy periods or for special projects, per diem workers provide the extra hands you need without long-term commitments.

Testing before hiring – Per diem arrangements can serve as extended trial periods to evaluate whether someone is a good fit for a permanent position.

While per diem employees are commonly associated with healthcare (nurses) and education (substitute teachers), small businesses across industries use them for administrative support, creative projects, warehouse operations, event staffing, and specialized consulting.

How Per Diem Employment Works​

Here's what makes per diem employment unique:

Fixed daily rate – Per diem workers typically negotiate a set daily rate before accepting an assignment. This rate is paid regardless of whether they work two hours or eight hours, though labor laws around minimum wage and overtime still apply.

No guaranteed hours – Unlike regular employees, per diem workers don't have guaranteed schedules. They're called in when needed and may go weeks without work from a particular employer.

Flexibility for both parties – Businesses gain workforce flexibility, while workers can accept or decline assignments based on their availability.

Example in Action​

Imagine you run a boutique marketing agency and land a large project requiring extensive graphic design work over a two-week period. Your in-house designer can handle the normal workload, but this project requires additional support.

You hire a per diem graphic designer at a rate of $400 per day for ten working days. Some days the designer finishes in five hours; other days require nine hours. Regardless of the hours worked, you pay the agreed-upon $400 daily rate (though you'd owe overtime if hours consistently exceed eight per day, depending on your jurisdiction).

Per Diem Travel Reimbursements: Simplifying Business Travel​

The second application of per diem involves travel expense reimbursements. Instead of requiring employees to track and submit receipts for every meal and expense during business travel, many companies establish a daily allowance.

How Per Diem Travel Expenses Work​

Set a maximum daily rate – Your company determines the maximum amount employees can spend per day on travel-related expenses. This typically covers lodging, meals, and incidental expenses.

Provide upfront or reimburse – Some companies advance the per diem amount before travel; others reimburse afterward.

Simplified expense tracking – Employees don't need to collect receipts for every coffee or meal, as long as they stay within the daily allowance.

Federal Guidelines and Tax Implications​

The U.S. General Services Administration (GSA) publishes federal per diem rates that vary by location. While businesses aren't required to follow these rates, there are tax implications for exceeding them.

Within GSA rates – Reimbursements at or below GSA rates are generally not considered taxable income to employees.

Above GSA rates – Any amount exceeding GSA rates is treated as taxable income and must be reported on employees' W-2 forms.

For example, if the GSA per diem rate for a city is $180 per day, but your company offers $250 per day, the $70 difference is taxable income for the employee.

Example in Action​

Your sales representative travels to a conference in Chicago for three days. You've established a per diem rate of $200 per day, totaling $600 for the trip. Instead of collecting receipts for every meal and taxi ride, your employee simply ensures their daily spending stays under $200. They submit a brief expense report summarizing their costs, and you reimburse the full amount.

Key Benefits of Using Per Diem​

For Per Diem Employees​

Cost efficiency – You only pay for the labor you actually need, when you need it. There's no obligation to provide consistent hours during slow periods.

Reduced overhead – Per diem workers typically don't receive benefits like health insurance, retirement contributions, or paid time off, reducing your overall employment costs.

Built-in flexibility – Scale your workforce up or down based on current demands without the complications of layoffs or understaffing.

Specialized expertise – Hire specialists for specific projects without committing to full-time salaries for skills you only need occasionally.

For Per Diem Travel Reimbursements​

Simplified administration – Less paperwork, fewer receipts to review, and streamlined expense report processing.

Predictable budgeting – You know exactly what each day of business travel will cost, making budget planning more straightforward.

Employee convenience – Your team doesn't need to front large amounts of money or save every receipt, reducing stress around business travel.

Faster reimbursement – Without extensive receipt verification, you can reimburse employees more quickly.

Best Practices for Implementing Per Diem​

For Hiring Per Diem Employees​

Research competitive rates – Survey your local market to understand going rates for per diem work in your industry. Offering competitive compensation helps attract quality talent.

Provide clear expectations – Even for one-day assignments, clearly communicate what needs to be accomplished, what resources are available, and what success looks like.

Respect their professionalism – Treat per diem workers with the same respect as regular employees. You may need their services again, and word-of-mouth matters.

Set them up for success – Provide necessary access to tools, systems, and information. A few minutes of onboarding can dramatically improve productivity.

Maintain a roster – Build relationships with reliable per diem workers who can step in when needed. Having a "bench" of trusted talent makes last-minute scheduling easier.

Comply with labor laws – Remember that per diem employees are still subject to minimum wage laws, overtime regulations, and workplace safety requirements.

For Per Diem Travel Reimbursements​

Establish clear policies – Document your per diem rates, what expenses are covered, and how employees should report spending.

Consider location-based rates – Travel to New York City costs more than travel to smaller cities. Consider adjusting rates based on destination.

Require expense reports – Even without receipts, employees should submit reports summarizing how they spent their per diem allowance. This documentation is crucial for tax purposes.

Provide advances when possible – Requiring employees to front hundreds of dollars for business travel can create financial hardship. Providing per diem advances alleviates this burden.

Review and adjust regularly – Periodically evaluate whether your per diem rates remain reasonable as costs change.

Separate categories if needed – Some businesses set different rates for lodging versus meals and incidentals, giving more specific guidance.

Common Pitfalls to Avoid​

Misclassifying workers – Ensure per diem workers are properly classified as employees (not independent contractors) if you control their work methods and schedule. Misclassification can result in penalties.

Ignoring overtime – Just because someone has a daily rate doesn't exempt them from overtime laws if they work beyond standard hours.

Setting arbitrary rates – Base your per diem rates on market research and actual costs, not guesswork.

Lacking documentation – Even with simplified per diem processes, maintain proper records for tax and compliance purposes.

Treating per diem workers poorly – Creating a negative experience means talented workers won't be available when you need them again.

Is Per Diem Right for Your Business?​

Per diem arrangements work well when:

• Your business has fluctuating staffing needs
• You need specialized skills for specific projects
• You want to test-drive potential employees
• Your employees travel regularly for business
• You want to simplify expense management
• You need coverage for employee absences

They may not be ideal when:

• You need consistent, reliable daily coverage
• The learning curve for new tasks is steep
• Positions require deep institutional knowledge
• You're in a location with limited per diem talent
• Your business rarely involves travel

Moving Forward with Per Diem​

Whether you're considering per diem employees or travel reimbursements, the key is implementing these arrangements thoughtfully. Take time to research appropriate rates, establish clear policies, and communicate expectations clearly.

For many small businesses, per diem arrangements offer the perfect balance of flexibility and structure. They allow you to access the talent and resources you need while maintaining lean operations and predictable costs.

Start small—perhaps with a single per diem hire for a upcoming project or implementing per diem travel reimbursements for your next business trip. As you become more comfortable with these arrangements, you can expand their use strategically throughout your business.

Remember, the goal isn't to replace your core team with per diem workers, but to complement your regular workforce with flexible solutions that help your business operate more efficiently and adapt to changing demands.

Have questions about implementing per diem arrangements in your business? Consider consulting with a human resources professional or accountant to ensure you're handling compensation, taxes, and compliance correctly for your specific situation.

As a Twitch streamer, you've turned your passion for gaming and content creation into a business. But with multiple revenue streams and unique expenses, managing your finances can feel overwhelming. This comprehensive guide will help you navigate the financial side of streaming so you can focus on what you do best: entertaining your community.

Understanding Your Income Streams​

Twitch streamers typically earn money from several sources, each requiring different tracking methods:

Subscriptions: Monthly recurring revenue from viewers who subscribe to your channel at different tiers (Tier 1, 2, or 3). Twitch takes a percentage, and you receive the rest.

Bits and Cheers: Direct support from viewers through Twitch's virtual currency. These micro-transactions add up but can be challenging to track individually.

Ad Revenue: Income generated from pre-roll, mid-roll, and display ads shown during your streams.

Sponsorships and Brand Deals: Potentially your largest income source, these can include product placements, sponsored streams, or affiliate marketing arrangements.

Donations: Direct payments from viewers through platforms like PayPal, Streamlabs, or StreamElements.

Merchandise Sales: Revenue from selling branded products to your community.

The complexity lies not just in having multiple income sources, but in tracking them accurately for tax purposes while understanding which are subject to different tax treatments.

Essential Tax Deductions for Streamers​

Understanding what you can deduct is crucial for minimizing your tax burden. Here are the most common deductions available to Twitch streamers:

Equipment and Technology​

You can typically deduct purchases related to your streaming setup, including computers, monitors, webcams, microphones, lighting equipment, green screens, capture cards, consoles, and controllers. For expensive equipment, you may need to depreciate the cost over several years rather than deducting it all at once.

Software and Subscriptions​

Streaming software, video editing tools, music licensing subscriptions, game subscriptions, and cloud storage services used for your content creation are all generally deductible.

Home Office Deduction​

If you have a dedicated space in your home used exclusively for streaming, you may qualify for the home office deduction. This can include a portion of your rent or mortgage, utilities, internet, and home insurance. The key word is "exclusive"—the space must be used regularly and solely for your streaming business.

Internet and Phone​

A portion of your internet and phone bills can be deducted based on the percentage used for business purposes. Since streaming requires high-speed internet, this can be a significant deduction.

Games and Content​

Games purchased specifically for streaming content, in-game purchases used during streams, and access to game libraries can all be deductible expenses.

Travel and Events​

Attending gaming conventions, esports tournaments, or industry events? Travel expenses including transportation, lodging, and a portion of meals may be deductible when the primary purpose is business-related.

Marketing and Advertising​

Money spent promoting your channel through social media ads, channel art commissions, emote designs, website hosting, and promotional giveaways can typically be written off.

Setting Up Your Financial System​

Proper bookkeeping starts with good organization. Here's how to set yourself up for success:

Separate Your Business and Personal Finances​

Open a dedicated bank account and credit card for your streaming business. This separation makes tracking income and expenses much simpler and provides clear documentation if you're ever audited.

Choose Your Accounting Method​

Cash basis accounting (recording income when received and expenses when paid) is simpler and works well for most streamers. Accrual accounting (recording when earned/incurred) may be required as you grow larger.

Track Everything in Real-Time​

Don't wait until tax season to organize your finances. Use spreadsheets or accounting software to record transactions as they happen. Categorize each income source and expense properly from the start.

Save Your Receipts​

Keep digital or physical copies of all receipts, invoices, and financial documents. A simple smartphone photo of each receipt stored in organized folders can save you hours of frustration later.

Managing Quarterly Estimated Taxes​

As a self-employed streamer, you're responsible for paying estimated quarterly taxes. The IRS expects you to pay taxes on your income throughout the year, not just at tax time.

Calculate approximately 25-30% of your net streaming income (after expenses) and set it aside for taxes. This covers both income tax and self-employment tax, which accounts for Social Security and Medicare.

Quarterly tax deadlines are typically April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines can result in penalties and interest charges.

Common Financial Mistakes Streamers Make​

Mixing personal and business expenses: This creates a bookkeeping nightmare and raises red flags during audits.

Not tracking small expenses: Those $3 game purchases and $10 software subscriptions add up to significant deductions over a year.

Forgetting about state taxes: Don't overlook state income taxes and sales tax obligations, especially if you sell merchandise.

Underestimating self-employment tax: Many new streamers are shocked by the 15.3% self-employment tax on top of regular income tax.

Poor documentation: Without receipts and proper records, you can't prove your deductions if questioned.

Building Financial Stability as a Streamer​

Streaming income can be unpredictable. One month might bring a huge sponsorship deal, while the next could be lean. Build financial resilience with these strategies:

Create an emergency fund: Aim for 3-6 months of living expenses saved to weather slow periods or equipment failures.

Diversify your income: Don't rely solely on one platform or revenue source. Expand to YouTube, TikTok, Patreon, or other platforms.

Plan for irregular income: Budget based on your lowest-earning months, and treat higher-earning months as opportunities to save.

Invest in growth strategically: Upgrading equipment is important, but balance it against your current income and savings.

Working with Financial Professionals​

As your streaming business grows, consider working with professionals who understand content creator finances:

A bookkeeper can handle day-to-day transaction recording and categorization, saving you hours each month. A CPA or tax professional familiar with content creators can optimize your tax strategy, ensure compliance, and help with complex situations like international income or forming an LLC or S-corp.

The cost of professional help is tax-deductible and can often pay for itself through tax savings and peace of mind.

Looking Ahead: Scaling Your Financial Management​

As your channel grows, your financial needs will evolve. You might consider forming an LLC for liability protection, electing S-corp status to potentially reduce self-employment taxes, hiring contractors or editors, or setting up retirement accounts like a Solo 401(k) or SEP IRA.

Final Thoughts​

Managing finances as a Twitch streamer doesn't have to be intimidating. Start with the basics: separate accounts, consistent tracking, and understanding your deductions. As your channel grows, scale your financial systems accordingly and don't hesitate to invest in professional help.

Remember, every dollar you spend on proper financial management is a dollar invested in the long-term success and sustainability of your streaming career. Your future self will thank you for the organized records and smart financial decisions you make today.

Disclaimer: This article provides general information and should not be considered professional tax or financial advice. Tax laws vary by jurisdiction and individual circumstances. Always consult with a qualified tax professional or accountant for guidance specific to your situation.

Accrued expenses sound abstract until month-end closes start piling up. They are a cornerstone of proper accrual accounting, ensuring your financial reports reflect economic reality, not just when cash changes hands. Here’s a clear, Beancount-first walkthrough of what they are, why they matter, and exactly how to book, reverse, and report them in your plain-text ledger.

TL;DR ⚡​

• Accrued expenses are costs you’ve incurred this period but haven’t paid yet. They are recorded as a liability until the cash goes out.
• In Beancount, this is simple: you debit an Expenses: account and credit a Liabilities:Accrued: account. Later, you clear the liability when you pay.
• To report, you can see what you owe as of a specific date by running a bean-query with CLOSE ON and CLEAR to get a clean balance-sheet snapshot.

What is an Accrued Expense?​

An accrued expense is a cost that a business has incurred, but has not yet paid. It's recorded when the service is received or the cost is incurred, even if the invoice hasn't arrived or the payment isn't due yet. This practice follows the matching principle of accrual accounting, which dictates that expenses should be recorded in the same period as the revenues they helped generate.

Common examples include:

• Wages earned by employees at the end of a month but paid in the next.
• Utilities (electricity, water) you used in December but won't be billed for until January.
• Interest on a loan that has accumulated over the month but has not yet been withdrawn from your account.

By recording these costs when they happen, you get a much truer picture of your company's financial performance for that period.

How Beancount Thinks About It (in 30 seconds)​

Beancount is a plain-text, double-entry accounting system. Everything is a dated directive or transaction in a text file. The system is built on five core account types: Assets, Liabilities, Equity, Income, and Expenses.

Entries are always ordered by date. A key detail is that balance assertions are checked before same-day transactions are processed. This is important to remember when you place checks and reversing entries.

Finally, the bean-query language provides a powerful, SQL-like way to generate reports. With operators like OPEN ON, CLOSE ON, and CLEAR, you can create precise "as-of" views for financial statements.

Your Chart of Accounts (Suggested)​

A clean, hierarchical chart of accounts is your best friend. For accrued expenses, the structure is straightforward. You'll need:

• An expense account: e.g., Expenses:Utilities, Expenses:Payroll:Wages
• A corresponding liability account: e.g., Liabilities:Accrued:Utilities, Liabilities:Accrued:Payroll
• Your cash account: e.g., Assets:Bank:Checking

Beancount enforces the five top-level account types. Keeping your account names organized makes querying and reporting much easier down the road.

The Core Pattern (No Plugin, No Magic)​

This is the most direct way to handle accruals in Beancount. It involves two steps: accruing the expense at month-end and clearing the liability when you pay.

Step 1: Accrue the Expense at Month-End​

On the last day of the period, you record the expense and create the liability.

2025-02-28 * "Accrue February electricity" #accrual
  Expenses:Utilities                 120.00 USD
  Liabilities:Accrued:Utilities

Step 2: Clear the Accrual When You Pay​

When the bill comes and you pay it, you don't hit the expense account again. Instead, you debit the liability account to clear it out.

2025-03-05 * "Pay Feb electricity - City Power"
  Liabilities:Accrued:Utilities      120.00 USD
  Assets:Bank:Checking

This is the cleanest approach for small teams. It correctly places the expense in February and ensures you don't double-count it in March. Notice that in Beancount, leaving one amount blank lets the system balance the transaction for you automatically.

Alternative: Reversing Entry on Day 1​

If you prefer the classic "auto-reverse" accounting style, you can post the opposite of your accrual entry on the first day of the next month. Then, you book the actual vendor bill to the expense account as you normally would.

Step 1: Accrue at Month-End (Same as before)​

2025-02-28 * "Accrue February electricity" #accrual
  Expenses:Utilities                 120.00 USD
  Liabilities:Accrued:Utilities

Step 2: Reverse on the First Day of the Next Month​

2025-03-01 * "Reverse Feb electricity accrual" #reversal
  Liabilities:Accrued:Utilities      120.00 USD
  Expenses:Utilities

Step 3: Book the Payment as Usual​

2025-03-05 * "City Power - February bill"
  Expenses:Utilities                 120.00 USD
  Assets:Bank:Checking

Heads-up on checks: Remember that balance assertions evaluate before same-day transactions. If you want to check your Liabilities:Accrued:Utilities account balance, place the assertion on 2025-02-28 to confirm the accrual or on 2025-03-01 after the reversal transaction to confirm it's zero. Placing it before the reversal on 2025-03-01 will cause a false failure.

Six Common Accruals (Copy-Paste Patterns) 📋​

Here are some ready-to-use examples for common business accruals.

1. Rent Not Yet Invoiced​

2025-01-31 * "Accrue January rent" #accrual
  Expenses:Rent                   3000.00 USD
  Liabilities:Accrued:Rent

2. Wages Earned but Unpaid​

2025-03-31 * "Accrue March wages" #accrual
  Expenses:Payroll:Wages          8500.00 USD
  Liabilities:Accrued:Payroll

3. Vacation Pay (PTO) Earned​

2025-03-31 * "Accrue PTO earned in March" #accrual
  Expenses:Payroll:PTO             900.00 USD
  Liabilities:Accrued:Payroll

4. Interest Accrued on a Loan​

2025-02-29 * "Accrue monthly loan interest" #accrual
  Expenses:Interest                210.00 USD
  Liabilities:Accrued:Interest

5. Professional Fees (Audit/Legal)​

2025-12-31 * "Accrue year-end audit fees" #accrual
  Expenses:Professional:Audit     4200.00 USD
  Liabilities:Accrued:Professional

6. Utilities Used but Not Billed​

2025-04-30 * "Accrue April utilities" #accrual
  Expenses:Utilities                95.00 USD
  Liabilities:Accrued:Utilities

Reporting: "What do I owe as of a certain date?"​

bean-query is your tool for getting answers. Here’s how you can get a proper balance sheet snapshot of your accrued expenses.

Get All Accrued Liability Balances at Period-End​

This query gives you the balance of each accrued liability account as of March 31, 2025.

bean-query main.beancount '
  SELECT account, UNITS(SUM(position)) AS balance
  FROM OPEN ON 2025-01-01 CLOSE ON 2025-04-01 CLEAR
  WHERE account ~ "^Liabilities:Accrued"
  GROUP BY 1
  ORDER BY 1;
'

• OPEN ON sets starting balances at the period start.
• CLOSE ON truncates transactions before this date (it's exclusive). That's why we use 2025-04-01 to get data up to and including 2025-03-31.
• CLEAR zeroes out Income and Expenses, giving you a clean balance sheet view (Assets, Liabilities, Equity).

See a Register of All Accrual Postings​

If you want to see the raw transaction history for your accrual accounts:

bean-query main.beancount '
  SELECT date, payee, narration, position
  WHERE account ~ "^Liabilities:Accrued"
  ORDER BY date;
'

Get a Single Total for All Accruals​

For a quick summary of the total amount you owe:

bean-query main.beancount '
  SELECT UNITS(SUM(position)) AS total_accruals
  FROM OPEN ON 2025-01-01 CLOSE ON 2025-04-01 CLEAR
  WHERE account ~ "^Liabilities:Accrued";
'

Controls & "Gotchas" Specific to Beancount​

• Balance Assertions Timing: As mentioned, assertions check the balance at the start of the day. 2025-03-01 balance ... runs before any transactions on 2025-03-01. Plan accordingly.
• Naming and Hierarchy: A tidy tree like Liabilities:Accrued:* is not just for looks. It makes your queries simpler and your reports instantly understandable.
• Pad with Caution: The pad directive can fix opening balances, but avoid using it to "fix" recurring accruals. Making explicit entries provides a clear audit trail.
• As-Of Reporting: For balance-sheet snapshots, always prefer OPEN ... CLOSE ... CLEAR in bean-query. This prevents income and expense accounts from polluting your liability totals.

Prepaid vs. Accrued (Quick Contrast)​

It's easy to mix these up. They are mirror images:

• Accrued Expense: Service consumed now, cash paid later. This creates a liability.
• Prepaid Expense: Cash paid now, service consumed later. This creates an asset.

The accounting logic is the same in Beancount; only the accounts differ (Assets:Prepaid:* vs. Liabilities:Accrued:*).

Drop-in Template (Start of File)​

Here are the open directives you'd need for the examples used in this post. Add these to the top of your ledger file once.

; --- Accounts (open once) ---
2025-01-01 open Assets:Bank:Checking
2025-01-01 open Expenses:Utilities
2025-01-01 open Expenses:Payroll:Wages
2025-01-01 open Expenses:Interest
2025-01-01 open Expenses:Professional:Audit
2025-01-01 open Liabilities:Accrued:Utilities
2025-01-01 open Liabilities:Accrued:Payroll
2025-01-01 open Liabilities:Accrued:Interest
2025-01-01 open Liabilities:Accrued:Professional

Final Notes​

If you run your books on a cash basis, you won’t post accruals at all—expenses are simply recorded when they are paid. If you run on an accrual basis, using the patterns above is essential for matching costs to the period where you consumed the service.

The examples here provide general educational guidance. Always consult your CPA for industry-specific treatments, especially regarding bonuses, payroll taxes, and capitalization thresholds.

Amortization spreads out payments to many installments over time. In beancount.io, you can use the plugin fava.plugins.amortize_over to achieve so.

Without amortization, if you want to insure your car for 6 months with costs of $600. You have to record this as a one-time expense for a particular date.

2017-06-01 open Assets:Bank:Checking
2017-06-01 open Assets:Prepaid-Expenses
2017-06-01 open Expenses:Insurance:Auto


2017-06-01 * "Pay car insurance"
    Assets:Bank:Checking       -600.00 USD
    Assets:Prepaid-Expenses

However, with amortization, you could allocate the expense over six months by putting plugin "fava.plugins.amortize_over" to the top of the file and using amortize_months: 6 for the transaction

plugin "fava.plugins.amortize_over"

2020-06-01 open Assets:Bank:Checking
2020-06-01 open Assets:Prepaid-Expenses
2020-06-01 open Expenses:Insurance:Auto

2020-06-01 * "Amortize car insurance over six months"
    amortize_months: 6
    Assets:Prepaid-Expenses       -600.00 USD
    Expenses:Insurance:Auto

And then in Journal, you will see the transaction is split into 6 postings.

2020-11-01 * Amortize car insurance over six months (6/6) am
2020-10-01 * Amortize car insurance over six months (5/6) am
2020-09-01 * Amortize car insurance over six months (4/6) am
2020-08-01 * Amortize car insurance over six months (3/6) am
2020-07-01 * Amortize car insurance over six months (2/6) am
2020-06-01 * Amortize car insurance over six months (1/6) am