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Anonymous
Not applicable

Taxi company need help setting up in quickbooksonline

Need help how can i record Taxi company income 

company has income every day 

drivers are vendors and get paid daily 

company makes 50% of daily fares and drivers get 50% 

some fares get paid  by credit card some accounts get paid later by customers paying invoices, but drivers get paid everyday 50% of total booking plus tips that went on credit cards or accounts that will get paid later

how do i record this 

I created a journal with drivers pay and company income, but if i include tips company gets income recorded for tips also 

Please help or advise how can i enter all this in quickbooks online 

 

 

1 Comment
Level 3

Re: Taxi company need help setting up in quickbooksonline

You will want to record the tips received in a separate account to not get it confused with the fares.

 

Here is an example with 2 transactions for the day.

 

Credit card sale with tip:

      Debit bank account $15.00

      Credit Fare income account        $13.00

      Credit Tip liability account           $2.00 

 

Fair invoiced to customer to pay later:

     Debit accounts receivable   $20.00

     Credit Fare income account                     $17.00

     Credit Tip liability account                         $3.00

 

Now you have $30 in your income account and you can pay your drivers their $15.00 plus the $5.00 in tips.

 

Check to first driver recorded as split transaction with $6.50 to Driver expense and $2.00 to the tip liability account.

 

Check to second driver recorded as split transaction with $7.50 to Driver expense and $3.00 to tip liability account.

 

Your tip liability account now has a zero balance because you have paid all tips out.

 

 

 

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