Overview

The chart of accounts is a list of all your company's general ledger accounts. Each account has its own account register report, which tracks the balance and transaction history for the account. In DoorLoop, you will use these accounts to categorize your transactions.

When you open your chart of accounts, you'll see a long list of default accounts, which you can add to if needed. You can click on an account in the chart of accounts to access its account register report.

  1. Basic Chart of Account Types - the five types of accounts

  2. Chart of Account Types in Detail - every DoorLoop chart of account type explained


Basic Chart of Account Types

There are five account types in the chart of accounts:

  • Asset: for example, cash, bank accounts, accounts receivable, undeposited funds, prepaid insurance, and buildings.

  • Equity: in DoorLoop, these are owner contributions (owners putting money into the business) and owner distributions (owners taking money out of the business).

  • Liabilities: money you owe but haven't yet paid. For example, credit cards, accounts payable, and mortgages.

  • Revenue: income from the business, such as rent payments.

  • Expense: outgoing money for business operations, such as insurance, landscaping, and maintenance.


Chart of Account Types in Detail

If you have some accounting expertise, reviewing the detailed breakdown below may be helpful. However, for most DoorLoop users, this isn’t necessary.

There are two main account types in DoorLoop: Balance Sheet accounts and Income and Expense accounts.

Balance Sheet Accounts

Balance Sheet accounts are the accounts that appear on your Balance Sheet report. Generally, this includes:

  • Asset accounts, for tracking things like bank accounts and properties.

  • Liability accounts, for tracking things like credit cards and bank loans.

  • Equity accounts, for tracking things like retained earnings and opening balances.

Here's a list of accounts that appear on the Balance Sheet report:

Asset - Accounts Receivable

  • Accounts Receivable accounts allow your business to track transactions related to tenants who owe you money. As with A/P, most companies require just one A/R account, and DoorLoop creates this for you by default. Your accountant can advise you of the circumstances that would require you to create additional Accounts Receivable accounts.

  • You can use Accounts Receivable reports to track tenants who owe you money, how much they owe, and how many days past due they are on their payments.

Asset - Other Current Assets

  • Here you will register all items that can be converted to cash or used up within one year such as prepaid expenses, inventory, loans from your business, deferred income taxes, and many others.

Asset - Bank

  • Using the Bank account type means you can track your business checking, savings, and petty cash accounts.

Asset - Fixed Asset

  • You will use Fixed Asset accounts to report items purchased for long-term use. These assets are also not easily converted into cash, such as land, buildings, and equipment.

Asset - Other Asset

  • You will use Other Asset accounts for items that are neither Fixed Asset nor Other Current Assets such as goodwill, long-term notes receivable, and security deposits that have been paid by you.

Liability - Accounts Payable (A/P)

  • This account tracks transactions related to the money you owe to your property vendors. Most companies require just one A/P account and DoorLoop creates this for you by default. Your accountant can advise you of the circumstances that would require you to potentially create an additional Accounts Payable account.

Liability - Credit Card

  • Here you will track credit card purchases made for the business. If needed, you can add multiple business Credit Card accounts.

  • Note: even if you have multiple business credit cards for one charge account, create only one Credit Card account in DoorLoop.

Liability - Current Liability

  • Use this account for monies that your business owes and expects to pay within one year such as short-term debt, dividends, notes payable, and income taxes owed.

Long Term Liability

  • Use this account for monies that your business owes and expects to pay back over more than one year such as mortgages, long-term loans, deferred tax payments, and the long-term portion of a bond payable.

Equity

  • Equity accounts represent the net worth of the company by displaying the difference between your liabilities and assets. If you sold all your assets today, and if you paid off your liabilities with the money received from the sale of your assets, the money you would have left is your equity.

  • By default DoorLoop has three equity accounts:

    • Owner Contributions: owners putting money into the business

    • Owner Distributions: owners taking money out of the business

    • Opening Balance: this is the default account to offset opening balance transactions.


Income and Expense Accounts

Put simply, Income accounts track the money coming into your business and Expense accounts track what your company spends. When you record transactions in DoorLoop, you will usually assign them to one or more income or expense accounts.

Here's a complete list of Income and Expense accounts in DoorLoop:

Revenue - Income

  • Here you will register monies that you generate from your normal day to day business, such as rental revenue, late fees, or rental application fees.

Revenue - Other Income

  • This type of account will allow you to categorize income you earned outside of the normal business operations like dividend income, interest income, insurance reimbursements, and profit from the sale of non-inventory assets.

Expense

  • Expense accounts are for money that you spend. Use it for tracking expenses related to normal business operations such as advertising, insurance, legal fees, maintenance, etc.

Expense - Other Expense

  • Use this type of expense account for expenses that are outside of your normal business, such as a loss on the sale of an asset, corporation taxes, penalties, and legal settlements.

  • In DoorLoop reports, Other Expenses are reported as a separate line item to easily distinguish them from your normal expenses.

Expense - Cogs

  • The cost of goods sold (COGS) are the direct costs of producing goods sold by your business. This includes materials and labor, but excludes indirect costs such as You may also add Cogs to record expenses such as equipment rentals, overnight mail, and purchases made on behalf of a customer, such as furnishings bought by an interior designer or auto parts bought by a mechanic.

If you're ready to add to and edit your Chart of Accounts, review this article next.

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