Accounting basics for new businesses in Turkey
Accounting basics for new businesses in Turkey: bookkeeping methods, invoices and e-documents, the tax calendar, your first hire and working with an SMMM.
You have set up your company in Turkey and are ready to issue your first invoice. Many founders see accounting as “the accountant’s job”, yet a well-organised setup makes a real difference from the first year, both in time and in penalty risk. This article summarises the building blocks of accounting for new businesses in general terms.
Why accounting matters from day one
Accounting is the system that records a business’s income, expenses, assets and liabilities. Accurate records mean that:
- Tax and SGK obligations are met on time and correctly,
- Cash flow and profitability become visible,
- Reliable financial statements can be presented to banks, investors and partners.
Bookkeeping methods: balance sheet basis vs. business account basis
In Turkey, businesses earning commercial income keep books under one of two main methods:
- Balance sheet basis (bilanço esası): Capital companies (joint-stock and limited companies) are subject to this method. Books such as the journal, general ledger and inventory book are kept, and a balance sheet and income statement are prepared at period end.
- Business account basis (işletme hesabı esası): Sole proprietorships may use this simpler method as long as they stay below thresholds set by law. The thresholds are updated periodically.
Self-employed professionals keep a professional income book instead. It is advisable to confirm which method applies to you with your accountant when you set up.
Invoices and documents
Every sale and purchase should be supported by a document. Common documents include:
- Invoice, e-Invoice (e-Fatura) and e-Archive Invoice (e-Arşiv)
- Self-employment receipt (or e-receipt)
- Expense voucher and producer receipt
- Bank statements and contracts
Whether you must switch to electronic documents such as e-Invoice, e-Archive and e-Ledger (e-Defter) is determined by the Revenue Administration (GİB) based on criteria such as turnover, sector and type of activity. The criteria can change, so review your status regularly.
Core tax return calendar
The main returns a new business will encounter are:
| Return | In brief |
|---|---|
| VAT return (KDV) | Declaration of VAT on sales and purchases; monthly for most taxpayers |
| Withholding and premium service return (MUHSGK) | Tax withheld and SGK reporting, if you pay wages or payments subject to withholding |
| Provisional tax return | Advance tax on periodic profits during the year |
| Annual income / corporate tax return | Declaration of the year’s profit |
Filing and payment dates are set by legislation and change from time to time; follow GİB’s tax calendar for the current dates.
Hiring your first employee
SGK obligations begin with your first employee: workplace registration, the employment start notification that as a rule must be filed before the employee starts work, and a monthly payroll. We explain payroll in what is payroll in Turkey?.
Keep business and personal spending separate
A dedicated business bank account makes records easier to trace. Personal spending from the company account and money movements between the company and its shareholders can have tax consequences, so document these transactions and consult your accountant.
How long should you keep documents?
The Tax Procedure Law and the Turkish Commercial Code set different minimum retention periods for books and documents. A practical approach is to follow the longer period and keep documents in an organised, accessible (preferably digital) archive.
Working with a certified accountant (SMMM)
Returns are filed through GİB’s e-Declaration (e-Beyanname) system, either by the taxpayer or through an authorised professional. For a new business, a good accountant matters for choosing the right bookkeeping method, keeping documents in order and tracking deadlines. Payroll and SGK processes can be handed over separately through our payroll services.
Starter checklist
- Confirm your bookkeeping method and e-document obligations.
- Open a separate business bank account.
- Send documents to your accountant every month.
- Put filing and payment deadlines in your calendar.
- Plan SGK processes before your first hire.
Check current legislation: This article is for general information only. Bookkeeping thresholds, e-document criteria and filing dates may change; check current legislation or consult your accountant before acting.
This article is for general information only and is not legal or tax advice. Rates, amounts and deadlines change; check the current legislation or consult a licensed accountant before acting.