Uberita Practical Accounting -

Recording only the net deposit as "Revenue." Correct approach: Record the gross fare as Revenue, Uber's fees as an Expense.

| Method | Accounting Treatment | |--------|----------------------| | (e.g., $0.655/mile) | Record mileage as an expense. Do NOT separately record fuel, repairs, insurance, depreciation. Keep mileage log. | | Actual expenses | Record fuel, oil, tires, repairs, insurance, registration, depreciation. Keep all receipts. | uberita practical accounting

1. Core Principle: Gross vs. Net Accounting Uber does not pay you the full fare a rider pays. Uber collects the fare, takes its fees (service fee, booking fee, etc.), and pays you the remainder. Recording only the net deposit as "Revenue

Use standard mileage for most Uberita drivers – it's simpler and often yields higher deduction. Only use actual if you drive a heavy or expensive vehicle. 5. Real-Life Scenarios & Journal Entries Scenario 1: You receive a $300 weekly payout from Uber (net). No need to reverse – just record the bank deposit. But for accurate P&L, you should have already recorded gross/fees. If not, use summary entry: Keep mileage log

| Item | Account | Debit/Credit | |------|---------|---------------| | Rider fare + tolls + surge | Revenue (Income) | Credit | | Uber fees (service fee, booking fee, insurance fee) | Commission & Fees Expense | Debit | | Net amount owed to driver | Receivable from Uber | Debit |