Short answer: Accounting is recording, classifying, summarising and reporting all of a business’s money movements based on documents. An accountant keeps these records, prepares and files tax and social security returns on time, calculates profit and loss at year end and gives the owner advice based on the figures. Sending documents completely and on time is the business owner’s responsibility.
For many entrepreneurs, accounting is something that happens once a month when they send photos of invoices, without quite knowing what follows. Yet accounting is the system that takes the business’s pulse: it shows which product makes money, where the cash goes and how much tax you owe. A business owner who understands accounting also works far more effectively with their accountant.
In this guide we explain, in plain language, the core functions of accounting, the types of books in Turkey, an accountant’s monthly and annual task list and the responsibilities that fall to you.
The four core functions of accounting
- Recording: Every transaction based on a document such as an invoice, receipt, bank statement or contract is entered in the books. No document, no entry.
- Classifying: Entries are grouped by type: sales, purchases, expenses, fixed assets, payables and receivables.
- Summarising: At period end the entries are totalled, giving the monthly VAT calculation, quarterly profit and the annual result.
- Reporting and interpreting: The summaries become tax returns, a balance sheet and an income statement; the owner makes decisions with these reports.
The first three functions are legal requirements. The fourth is the real value that distinguishes a good accountant from an ordinary record keeper.
Which books do you keep?
In Turkey the type of books a business keeps is set by the Tax Procedure Law according to its structure and size:
| Type of books | Who keeps them? | Feature |
|---|---|---|
| Business ledger | Sole proprietorships below certain thresholds, tradespeople, couriers | Income and expenses tracked in two columns; simple |
| Professional income ledger | Self-employed professionals such as doctors, lawyers, architects, consultants and developers | Cash basis |
| Balance-sheet basis | Limited and joint-stock companies, sole proprietorships above the thresholds | Double entry, balance sheet and income statement |
The type of books also sets the accounting cost. In Ankara the minimum monthly fees for 2026 start at 3,593 TL for a business ledger and 7,985 TL for balance-sheet bookkeeping. See accountant fees in Ankara for details.
What does an accountant do every month?
| Task | Frequency | Purpose |
|---|---|---|
| Entering documents in the books | Every month | Creates the legal basis of the records |
| VAT return | Every month | Declares the difference between VAT collected and VAT paid |
| Withholding and social security return | Every month (if staff or withholding) | Reports tax and SGK premiums on wages, rent and professional fees |
| Payroll | Every month | Calculates employees’ net and gross pay |
| Ba-Bs forms | Every month (if threshold exceeded) | Reports large purchases and sales |
| Provisional tax | Three times a year | Calculates advance tax on profit |
| Annual return | Once a year | Declares the year’s final profit or loss and tax |
| Advisory | Ongoing | Incentives, tax planning and the tax consequences of decisions |
We explain the dates for these tasks in our monthly tax calendar, and how they line up in a new company’s first year in our first-year checklist.
Example: a small café’s accounting for one month
To make the concepts concrete, take a small café in Kızılay with two employees. During the month it sells through cash register receipts, buys from a wholesaler with invoices, and pays rent and electricity. At month end the accountant:
- Records the cash register Z reports and card payments as sales.
- Enters wholesaler invoices and rent, electricity and water bills as expenses.
- Deducts the VAT paid on purchases from the VAT collected on sales and prepares the VAT return.
- Runs payroll for the two employees and reports the tax and SGK premiums deducted from wages on the withholding and social security return.
- Shows the withholding deducted on the shop rent on the same return.
- Tells the café owner the total taxes and premiums payable and their due dates.
The café owner’s only job in this process is to send documents completely and on time. Every other step is the accountant’s responsibility.
What does good accounting give a business?
- Filing on time: The risk of irregularity penalties, late-payment surcharges and interest disappears.
- Correct expense records: Every documented expense legally reduces the tax payable.
- Using incentives: Benefits such as SGK reductions and the young entrepreneur exemption are not missed.
- Credit and investment: Banks and investors trust well-kept financial statements.
- Decision support: You see in figures which products and which clients make money.
How does accounting affect your tax burden?
The tax you pay is calculated on the profit shown in your accounting records. An undocumented expense makes your profit look higher than it is and leads you to pay more tax. For sole proprietorships, the tax rate rises step by step as profit increases. The 2026 income tax brackets for business income are:
Rates apply only to the portion within each bracket. The upper limit of the third bracket differs for employment income. Limited and joint-stock companies pay 25% corporate tax.
Under this structure, every correctly recorded expense saves tax at the rate of your highest bracket. Make your own estimate with our income tax calculator.
The business owner’s responsibilities
Working with an accountant does not mean handing over all tax responsibility. In law the taxpayer is always the business itself. Your responsibilities are:
- Documenting all purchases and sales and sending documents completely and on time
- Keeping personal and business spending separate
- Paying taxes and premiums before the deadline
- Following e-Notifications and official correspondence
- Keeping books and documents for the legal period: five years under tax law, ten years for companies under commercial law
Can you do your own accounting?
Legally, you can file your own returns. For a small business with very few documents and no staff this is possible in theory. In practice, though, tax legislation changes often, filing deadlines are tight and mistakes are costly. For companies on a balance-sheet basis, double entry, the e-Ledger and financial statements require expertise. For most businesses the accounting fee is small next to a penalty avoided or an incentive gained.
If you are wondering about the difference between an accountant and a certified public accountant, see this article; to choose the right professional, see our guide to choosing an accountant.
Frequently asked questions
What is accounting, in short?
Accounting is the process of recording, classifying, summarising and reporting a business’s money movements based on documents. The results are used both in tax returns and in business decisions.
What does an accountant do?
They keep the books; prepare and file VAT, withholding, provisional tax and annual returns; handle payroll and SGK procedures; calculate profit and loss at year end; and advise on tax.
Does every business have to hire an accountant?
It is not legally required; taxpayers can file their own returns. But because bookkeeping and filing deadlines are complex, most businesses work with a certified public accountant.
Which documents should I give my accountant?
Purchase and sales invoices, expense receipts, bank statements, rent and service contracts, staff hiring and leaving details and any official letters concerning the business should be sent regularly.
If I use accounting software, do I still need an accountant?
Software makes invoicing, collections tracking and reporting easier, but it does not interpret tax legislation or take responsibility for filings. The most efficient arrangement is to run day-to-day bookkeeping in software and leave official accounting to a certified public accountant.
What is the difference between day-to-day bookkeeping and accounting?
Day-to-day bookkeeping (ön muhasebe) means handling daily tasks such as invoicing and tracking collections and payments within the business. Official accounting means entering these records in the legal books and turning them into returns.
Summary
Accounting is a system that lets your business meet its legal obligations and make the right decisions. The accountant sets up and runs the system; you keep it working correctly by sending documents regularly. A partnership in which both sides know their role prevents penalties and keeps the tax burden as low as the law allows.
At Ankara Muhasebeci we offer bookkeeping, tax returns, payroll and advisory services under one roof at our office in Kızılay. You can look at the scope of our bookkeeping and accounting service or get in touch to talk about your business.
Once you see accounting not as an obligation but as your business’s dashboard, the monthly reports start telling you not just how much tax you will pay but how to grow your business.
