The accuracy of a company’s financial records depends not only on proper bookkeeping but also on the regular verification and alignment of these records with third parties. Reconciliation services ensure financial reliability and transparency by verifying that the receivable, payable, inventory, bank, and intercompany accounts in financial statements match official records.
What Is Reconciliation?
Reconciliation is the process of verifying the consistency of amounts recorded in a company’s books by comparing them with the records of the counterparty. This process is not only essential for accounting and auditing purposes but also plays a critical role in ensuring the accuracy of tax obligations and the reliability of cash flow management.
In Turkey, the Tax Procedure Law (VUK), the Turkish Commercial Code (TTK), and the Public Oversight, Accounting and Auditing Standards Authority (KGK) regulations all emphasize accuracy, continuity, and documentation in corporate accounting. Reconciliation procedures are among the most important control mechanisms that ensure the practical application of these principles.
Types of Reconciliation in Turkey
At OzbekCPA, we provide professional reconciliation services tailored to each company’s business sector, transaction volume, and risk profile. Our main service areas include:
1. Current Account Reconciliation (Customer/Supplier)
This reconciliation verifies the balances of receivables and payables between a company and its business partners. The goal is to confirm the accuracy of records and identify any discrepancies in a timely manner. It is also a mandatory step in year-end closing and independent audit preparations.
2. Bank Reconciliation
This involves comparing bank statements with accounting records to ensure consistency. During this process, value date differences, transaction fees, accrued interests, and foreign exchange variances are analyzed in detail.
3. Inventory Reconciliation
This ensures the consistency between warehouse records, production reports, and accounting inventory accounts. For manufacturing and import-export companies, inventory reconciliation is essential for cost accounting accuracy and VAT return compliance.
4. Intercompany Reconciliation
This process verifies the transactions between companies operating under the same group or holding structure. For multinational companies, intercompany reconciliations are particularly important for transfer pricing, double taxation agreements, and International Financial Reporting Standards (IFRS) compliance.
5. Tax Office and Social Security (SGK) Reconciliation
This reconciliation matches the taxpayer’s records with the balances registered in the Tax Office or Social Security Institution (SGK). It helps identify inconsistencies in tax filings, withholding statements, and social security premium payments in advance, ensuring timely corrections.
OzbekCPA’s Approach to Reconciliation
Since every company has a different financial structure, our reconciliation services are not based on a standard checklist. At OzbekCPA, we manage the process through the following structured steps:
Data Analysis and Preliminary Review: A detailed examination of client records, ledgers, and document structure is conducted.
Defining the Suitable Reconciliation Model: The method is chosen according to the company’s business model, transaction volume, and system infrastructure (manual, ERP-based, or software-assisted).
Reconciliation Dispatch and Follow-Up: Customer or supplier reconciliation forms are sent via email or system platforms, and responses are systematically tracked.
Discrepancy Analysis: Any mismatched accounts are reviewed in detail, and a discrepancy report is prepared.
Adjustment and Correction Entries: Verified discrepancies are recorded properly in the accounting system and supported with documentation.
Benefits of Reconciliation Services for Your Business
- Ensures accuracy and consistency in financial statements
- Enhances speed and reliability during audit processes
- Minimizes tax-related risks
- Improves predictability and control in cash flow management
- Strengthens transparency and trust in relationships with customers, suppliers, and group companies
To enhance the reliability of your financial processes, detect potential risks early, and simplify your audit preparations, you can benefit from OzbekCPA’s professional reconciliation services. For more information or to create a reconciliation plan tailored to your business needs, please contact us.
