Bookkeeping and Accounting for Taxi Drivers

As a taxi driver, you are eligible to claim a wide range of expenses as tax deductions. These include:

• Fuel and oil costs
• Repair and maintenance expenses
• Insurance costs
• Registration fees
• Depreciation costs on your taxi
• Leasing costs if you lease your taxi
• Bank fees (on the bank account where you receive income from your taxi fares)
• Interest on any loans used to purchase your taxi
• Costs of cleaning and detailing your taxi
• License fees, cost of obtaining a taxi license or renewing it
• Accounting and bookkeeping fees
• Any other costs directly related to operating your taxi business.

Remember to keep good records of all your expenses for when you preparing your tax return or in case of an audit. It's also important to consult with a professional accountant or tax advisor to ensure you're claiming all the eligible deductions.

Ride-hail drivers often work with multiple platforms such as Uber, Lyft, and others. To effectively manage your bookkeeping, you should consider these steps:

<ol><li>Distinguish Your Earnings: Make sure to separate your incomes from the different platforms. This will help maintain an organized record and make it easier to track your earnings.</li><li>Track Expenses: Keep track of all your expenses related to your ride-hailing job. This includes gas, maintenance, insurance, cleaning, and other costs. Remember to keep all receipts for documentation.</li><li>Use a Consistent System: Consider using a bookkeeping software or hire a professional bookkeeper to ensure consistency and accuracy in tracking your earnings and expenses.</li></ol>

At Bench Accounting, we have professional bookkeepers that can help streamline your bookkeeping process, making it easier and more efficient for you to keep track of your earnings from different ride-hail platforms.

The best accounting method for income from driving or taxi services is typically the 'cash' accounting method. This approach allows businesses to record income when it is actually received, rather than when it is earned. This method is simple and straightforward, making it excellent for small businesses like taxi services where transactions are usually uncomplicated and occur regularly. Please note that while this method works for many, it's crucial to speak with a professional accountant to understand the best accounting method suited for your specific situation.

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.