Chart of Accounting Integration – How We Do It

At Smart Outsourcing, we provide sustainable, rational and flexible solutions to you with our local expertise and the inspiration we have received from our name. Yes, you are using your own chart of accounting which is valid in your own country but, we are adapting the chart of your group companies or your affiliate companies for you and presenting it in a form you will easily review and interpret.

As it is required for a firm to follow of the chart of accounting of the country in which it is located, the integration to its mother company and the compatibility between both mechanism has a great importance in terms of comparableness consolidation. A well-planned and edited chart of account means an accurate accounting and effective reporting for us. This renders your business routine more practice and readable for you.

Since our main field of activity is Europe and we served mostly German capital here, we will outline German chart of account following. Having a strong financial input underlies the strong economy of Germany. These financial inputs are accompanied by accurate reporting and fair accounting inputs. What makes reporting and accounting systems so strong is a sustainable account plan which is designed accurately and toward the target. In Germany, there is no obligation for companies to use a chart of accounting, but there are a plenty of accounting charts for companies on a sectoral basis. Accounting charts are controlled by ‘DATEV’ and ‘SAP’ companies on their own systems. As Smart Outsourcing, we know DATEV and SAP accounting charts well based on our past experiences and offer the integration part in our service scope for your benefit.

Would you like to get some basic information about Turkish Chart of Accounts?

The type of planning used in accounting operations and involving accounts that are designed according to a specific system are called ‘uniform chart of accounts’. In Turkey, all traders who keep their books based on balance sheet are required to apply the uniform chart of accounts effective since January 1, 1994. Codes and accounts in the account plan are not allowed to change, but managements or financial advisors can choose the accounts that they prefer and use them in accounting records.

All Europe-based companies that we serve in Turkey’s territorial waters, must keep their accounts according to Uniform Chart of Accounts. This information can be accessed through the General Communique on Accounting System (Repeated No. 21447, No. 1) published in the Official Gazette which is prepared by the Ministry of Finance.

In this general communique, the Ministry of Finance has determined some regulations on following issues:

a) The Definition and Basic Concepts of Accounting
b) Explanation of the Accounting Policies
c) Principles of Financial Statements
d) Arrangement and Presentation of Financial Statements,
e) Plan and Execution of Uniform Chart of Accounts

The targets of these regulations are;

• A sound and reliable accounting of the activities and outcomes of enterprises and businesses belonging to real and legal persons keeping books based on the balance sheet,
• Ensuring that the information provided through financial statements reflects the actual situation by maintaining the consistency and comparability qualities which might be audited or investigated,

In other words, it is imperative to obey the rules and regulations introduced by the General Communique on Accounting System since these regulations are towards,

• Ensuring that accounting information is delivered adequately and accurately to the relevant parties,
• Comparing different firms and the different terms of the same firm,
• Ensuring that the account names in financial tables give the same meaning to all parties,
• Providing the term unities of accounting so that it becomes more understandable,
• Developing trust among team members of firms.

The sanction for non-compliant Uniform Chart of Accounts: Special Irregularity Fine

Special Irregularity Fine has been determined, according to the 353rd article of Tax Procedure Law, as the sanction for non-compliant with Uniform Chart of Accounts.
Article 353/6 of the Tax Procedure Law entitled “Special Irregularities and Fines” states that those who do not comply with the rules and standards for the accounting standards determined in accordance with this Law, the uniform accounting plan and the principles and procedures related to financial statements and the production and use of accounting computer programs are applied a fine of TRY 5.000,00 (effective by 1.1.2016 with the T.P.L. General Communique with 406 order number).