| 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 |
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. uberita practical accounting
Recording only the net deposit as "Revenue." Correct approach: Record the gross fare as Revenue, Uber's fees as an Expense. Uber collects the fare, takes its fees (service
| 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. | Keep all receipts. |