Overview
DoorLoop sets default accounts in the chart of accounts to automate your accounting. This means you don't have to set these accounts over and over again as you add properties and record transactions.
For example, you can set default bank accounts for all of your properties and only set different bank accounts for a property if needed.
Tip: Changing the default bank operating account will cancel any auto-pays your tenants may have set. This is to ensure their auto-payments don't go into the wrong bank account. Have your tenants recreate their auto-pays after the change.
The Steps
To set up your default accounts in DoorLoop, click Settings on the main menu. Then under the Company section, click Default Accounts.
On the Default Accounts window, you can edit the following default accounts:
Bank
Operating Bank Account — When tenants make online payments for their lease charges, the payments go into the default Operating Account. If you'd rather each property have its own default bank account, your properties need to be set to use property-specific bank accounts.
What you choose here must be a bank account that has a merchant account attached to it if you want to receive online payments.
Trust Bank Account — When you record manual payments on a tenant's lease, you can use this account as the second bank account deposit option. If you'd rather have each property use its own escrow account, your property needs to be set to use property-specific bank accounts.
This bank account is usually used for recording payments made for lease deposits, since many states require security deposit money to be kept in a separate bank account. You can use it for other purposes if you'd like.
The Trust/Escrow Account will never receive online payments directly into it, regardless of whether the payment is intended for a security deposit or not.
Clearing Account — A clearing account is a temporary account used to record transactions before they're permanently allocated to the appropriate accounts. We suggest not changing this.
Income
Rental Income — This is the default account for rent charges; it's the only account whose charges trigger late fees by default.
Application Fee — When prospective tenants pay online to submit rental applications, the revenue is recorded in this account.
Late Fees — When you set late fee schedules for your company and properties, this account is selected by default.
Convenience Fee Income — The default account used for collecting convenience fees.
Liability
Security Deposit — The default account used to record security deposits
Expense
Management Fees — The default account used to record management fees
Outgoing Payment Fees — The default account used to record outgoing payment fees
Outgoing return payment fees — The default account used to record outgoing payment return fees
Equity
Owner Contribution — When you create an owner contribution, this equity account is used by default.
Owner Distribution — When you create an owner distribution, this equity account is used by default.
Equity Retained Earnings — What account is used to record your equity retained earning after the end of the year.
Click Save when you are done making changes.
These accounts are now your defaults. You can change them again later if needed.
Tip: All online payments from a tenant — whether a rent payment or a security deposit payment — go to the bank account set as the Operating Bank Account (also called the Default Operating Account). Security deposit payments paid online will not go to the Escrow account; you'll need to record a bank transfer if you need to move these funds to an Escrow account. See Record a Bank Transfer.
Disclaimer
The information provided is not offered by a licensed accountant, should not be considered accounting, financial, or legal advice, and is provided (and intended) for general informational purposes only. Do not rely on the information provided; rather, please verify applicable accounting laws and regulations independently. This information should not be considered a substitute for professional advice and does not offer Generally Accepted Accounting Principles (GAAP). The author and publisher are not liable for any damages or losses resulting from reliance on this information.