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ACCOUNTING

MGC LEGAL
ACCOUNTING

Our Accounting Services in Istanbul, Turkey

Accounting is indispensable for business transactions. Businesses of all sizes are responsible for keeping accounting records. Accounting requirements and responsibilities vary depending on the type of business.

Subjects such as company accounting, tax accounting and outsourcing payroll are among the main accounting subjects of businesses.

What is Accounting?

Accounting is a concept that expresses the daily financial activities of commercial enterprises. The Turkish Language Association defines accounting as “setting up, mutual reckoning”.

It refers to the processes of documenting, classifying, recording, summarizing and reporting financial movements of businesses. Accounting processes are the whole of systematic information in which all these transactions are presented to the authorities or institutions.

What Are The Purposes of Accounting?

The objectives of accounting are directly proportional to the objectives of the businesses. Basically, the objectives of accounting can be listed as follows:

  • Recording: Recording and archiving financial transactions is a process favouring businesses. Accounting ensures that financial records that may be needed in the future are accessed and processed when necessary, with a permanent record system.
  • Follow-up and Analysis: Accounting provides to follow the profit and loss status of the enterprises. It is of strategic importance for the sustainability of businesses to receive daily, weekly or monthly financial activity reports and to measure and analyze the financial situation with these reports. Accounting serves the companies’ objectives by providing the measurement and follow-up of the financial statements.
  • Credibility: Businesses may need loans from time to time. Businesses provide their capital with investors or loans. If the firm assures credit institutions or investors, it can maintain sustainability in its financial capital. At this point, past accounting records of enterprises play an important role because credit institutions or investors decide by examining the accounting records of previous periods.
  • Source Usage: Accounting data is also important for the internal analysis of businesses. In this way, the resource and resource usage obtained as a result of the enterprise’s activities can be seen. Thus, by analyzing the business’s past activities, managers can make the right decisions about increasing efficiency and efficient resource use.
  • Sustainability: The sustainability of businesses is directly linked to financial activities. Accounting provides a future projection for managers and investors. By providing the necessary financial data, the business’s financial situation can be revealed on the axis of income and expense. Thus, managers can make sound decisions about sustainable activities in the light of historical accounting data.

Company Accounting Service Scope

The most common among accounting transactions is company accounting. In corporate accounting, first of all, company types are defined. Then it includes many transactions, from establishment transactions to accounting records.

There are different company accounting procedures in many types of companies, from sole proprietorships to limited partnerships, from joint-stock companies to cooperatives. Issues such as establishment transactions, keeping accounting records, and profit or loss situations fall within the scope of company accounting.

The scope of the company accounting service is as follows:

  • Invoices issued by customers or vendors during the month and payment documents issued are recorded separately for each customer or vendor.
  • Records of the company’s bank movements are made.
  • The counterparty is contacted at the end of the month or during the collection or payment periods, and mutual agreements are made with each of them separately.
  • Current agreements are made with companies.

Tax Accounting Service Scope

Tax accounting is general accounting practices within the framework of the Tax Procedure Law (TPL). It refers to all of the accounting transactions made to determine taxable income. The rules stipulated by TPL and special tax laws are taken into account in these applications.

Tax accounting checks and audits companies’ tax commitments. This framework determines the tax payments and makes the necessary evaluations. The tax liabilities of companies are linked to all accounting practices.

There are different accounting practices, depending on the type of company. The purpose of tax accounting is to justify the withholding tax that should be submitted to the public treasury from the income of the enterprises as a result of their activities.

The tax accounting service scope is as follows:

  • At the beginning of the year, it makes the opening book certificates.
  • Prepares monthly or quarterly Value Added Tax (VAT) declaration, notification purchase notification and notification sales notification, temporary tax, stamp tax, Special Consumption Tax (SCT) declarations and/or declarations.
  • It ensures that these signed declarations are notified to the tax office, and their accruals are received.
  • It performs the necessary procedures in the processes of notifying the tax office of the concise declarations and receiving their accruals.
  • It ensures the preparation of annual income tax and corporate tax returns and annexes. It ensures that these signed documents are notified to the tax office, and their accruals are received.
  • By printing the year-end book, it ensures that the closing approvals are made.

Outsourcing Payroll Service Scope

Outsource payroll is a set of services that define the outsourcing of businesses in reporting and payroll processes. It aims to complete the payroll transactions of real and legal persons, companies, associations, and public or foundation institutions in accordance with the legislation.

In this type of payroll, payroll processes are carried out by a professional company. Payroll specialists monitor and document the entire process.

Outsource payroll service scope is as follows:

  • It ensures that the legal notifications of the personnel who are employed and/or resigned or who are on a report are made.
  • Calculates the notice or severance pay and other legal obligations of the personnel.
  • The personnel prepares payrolls monthly per the content and form requirements within the framework stipulated by the laws.
  • Prepares monthly SSI and tax declarations (withholding statements) of the personnel. It ensures that the relevant tax office is notified of the signed documents within the legal period.
  • It ensures that monthly tax and Social Security Institution payments are made on time.

Virtual Office Services

With the change in working life, working conditions also change. The most popular example of this is virtual offices. Virtual office services have been one of the popular office rental options in recent years. The virtual office, which can be offered with a serviced office, or shared office concept, can also be an independent space. These types of offices offer a variety of possibilities and advantages.

In this way, it is possible to make things even easier. Virtual offices, which are increasingly used today, save especially entrepreneurs, home-office workers or freelancers from the costs of establishing a physical office.

What is a Virtual Office?

The virtual office concept was first introduced in 1994 by Ralph Gregory with the company “The Virtual Office”. So, what is a virtual office? A virtual office is an office concept where several business functions can be accessed via the internet.

Thus, it allows business owners or employees to work remotely. Also, the opportunity for businesses or companies to have an office in the desired location without having to pay rent for a physical space. It allows businesses to take advantage of a physical office without any real space or desks.

The process of establishing a virtual office is quite easy and short. Due to this feature, virtual offices are especially preferred by entrepreneurs. People who do not need a physical office or who travel frequently, business people or freelancers also prefer virtual office services.

What Are The Advantages of a Virtual Office?

Virtual office services offer some advantages to companies. The main advantage of the virtual office is providing an official address.

In general, virtual office advantages are:

  • Provides a real business address for businesses. For example, the virtual office address to be taken in a luxury business centre allows the company to look prestigious.
  • It allows the mails received by the company to be scanned and sent via e-mail.
    Allows the use of a fixed telephone line on behalf of the company. This service provides professionalism to the company.
  • In these offices, business meetings can be held from time to time in a physical environment, and appointments can be made to the virtual office address.
  • The meeting room is equipped with amenities such as a projector and television.
  • There is unlimited tea, coffee and treats for meetings or appointments.
  • Virtual office fees are much lower than regular office rental costs.

You can contact us to get more detailed information from our competent team.