Uberita Practical Accounting | 720p |

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:

| 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. Use standard mileage for most Uberita drivers –

| 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 | Real-Life Scenarios & Journal Entries Scenario 1: You

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