Bookkeeping and Accounting for Uber Drivers

As an Uber driver, you have access to several tax deductions. These include mileage expenses, the cost of maintaining your vehicle (such as repairs, car washes, tires, and oil changes), car insurance, parking and toll fees, mobile phone and data plan costs, commissions paid to Uber, among many others. However, tax laws are subject to frequent changes and vary by location. To ensure you're maximizing your deductions and maintaining compliance, it's recommended to work with a qualified bookkeeper or accountant.

Managing your bookkeeping effectively as an Uber driver can be challenging, but with careful tracking and categorization of income and expenses, it's achievable. Your income is the total you earn from your fares, while expenses can range from gas and vehicle maintenance to insurance and refreshments for passengers. Here's how you can manage them:

• Track Income: Keep track of all your earnings on the Uber platform. This is typically straightforward, as Uber provides you with an annual tax summary and a monthly/weekly breakdown of your earnings.
• Track Expenses: It’s crucial to record all your expenses incurred for the Uber business. This includes, but is not limited to, vehicle maintenance, gas, insurance, cell phone bills, etc. In some cases, you may be able to deduct certain costs for tax purposes.
• Use a Bookkeeping Service: If managing the accounts becomes too labor-intensive, consider using a professional bookkeeping service like Bench. We can manage all aspects of your bookkeeping, leaving you free to concentrate on driving.

Remember, the rules for reporting income and expenses may vary depending on your location and individual tax circumstances, so consider consulting with a tax advisor or professional.

The tax implications of being an Uber driver can be complex. For starters, you're considered self-employed, meaning you're responsible for all taxes, including self-employment tax for Social Security and Medicare. You must also maintain precise records of your mileage and other business-related expenses, which can be deducted from your taxable income.

Bench Accounting can assist you in various ways. Firstly, our expert bookkeepers help keep track of all your expenses, and ensure they’re categorized properly for maximum deductions. Secondly, we offer a year-end financial package that includes everything you need to file your taxes. Plus, we partner with experienced tax professionals who can take over the tax filing process entirely, guaranteeing accuracy and that you’re getting the most out of your return.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.