Chart of Accounts is a structure resulting from the classification of G/L accounts with a certain order, and is used to track documents and status of companies. The Chart of Accounts consists of main accounts and complementary sub accounts. Further levels can be added under the sub accounts if necessary.  J-Guar contains a triple chart of accounts structure. This feature provides numerous flexibilities.

The triple chart of accounts system provides:

  • The ability of issuing books and reports using national chart of accounts for multinational companies
  • Considering the second chart of accounts as a draft for the main chart of accounts, and reflecting transactions that affect financial statements on the second chart first
  • Arranging a third chart of account complying with IFRS (International Financial Reporting System)

Main Chart of Accounts: The law dated 1994 standardized all charts of accounts used throughout the Turkish Republic. The accounts are similar in main account level.

Companies are obliged to establish their accounting systems according to the uniform chart of accounts standard. Account processing methods are as specified on the chart of account description. Only main accounts are required to be standard in the Uniform Chart of Accounts. When company and period files are generated, the standard account plan is automatically generated in the main account level.

Second Chart of Accounts: Companies are legally obliged to keep their G/L systems according to the uniform chart of accounts. Reports elaborated according to the main chart of accounts, and mandatory transactions within the fiscal period mainly consist of information that the companies have to declare to third parties. In time, companies started to realize the necessity of a custom and flexible accounting system for control and internal inspection purposes, rather than accounting systems fully based on main chart of accounts.

J-Guar’s second chart of accounts option provides companies with the ability of creating a custom and flexible second chart of accounts in addition to the legally required main chart of accounts. This innovation allows companies to ensure internal audits and data security with a custom chart of accounts.

Third Chart of Accounts: A different chart of accounts can be arranged for IFRS transactions. In order to do so, IFRS Chart of Accounts must be selected while defining Company in system administration.