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.
| 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. |
| 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 |