What is the Uniform Chart of Accounts (TDHP)?

One of the most important tools that simplifies and organizes accounting is the Uniform Chart of Accounts (UAC). You can compare it to the shelf layout of a supermarket. Every product has a specific place on the shelves, right? Similarly, the UAC divides all your business's income and expenses, receivables, and payables into specific categories. For example, the income from the products you sell is in the "Revenue" category, while expenses like electricity bills and rent are in the "Expenses" category. Click here to view the Uniform Chart of Accounts.

For example, if you're a coffee shop owner, you track your milk purchases, coffee beans, and cleaning supplies in separate accounts. This way, you can easily see how much you're spending on each area. This structure not only helps you control your own business but also greatly simplifies the preparation of reports you need to submit to the tax office. In other words, TDHP is a system that prevents confusion in accounting, maintains order, and ensures everyone speaks the same language.

What Do Journal Ledger, General Ledger and Inventory Ledger Mean?

There are three basic books of accounting and all of them are very important for the healthy financial life of the business.

• Journal Ledger : Let's say you work in a bakery. This ledger records all your financial transactions—every product you sell, ingredients you buy, invoices you pay, and employee salaries—in chronological order. So, details like, "I sold 100 cakes today and bought 50 kilos of flour" are included here.

• General Ledger : This journal collects these daily details and summarizes them by account. For example, it shows the total cake sales for a month or the total flour purchase amount. This ledger allows you to clearly see the amount of movement in each account.

• Inventory Book : At the end of the year, all assets and liabilities of a business are counted and recorded. For example, this book contains information such as how much money the bakery has left in its safe, how many kilograms of flour and sugar are in stock, and what the status of rent is. This provides clarity on the business's assets and liabilities.

These three books together allow you to take both a snapshot and a periodic snapshot of your business's financial situation and make the right decisions.

Accounting Terms Dictionary: For Beginners

While accounting terms may seem complex at first, they're actually similar to our daily lives. Here are a few key terms and examples:

• Assets : These are all the assets your business owns. For example, the money in your home bank account, the products in your store, and the computer you use are all considered assets.

• Liabilities : These are the business's liabilities and capital. For example, if you took out a bank loan to buy a computer, this loan would be recorded as a liability. The money the partners put into the business is also a liability because it's capital.

• Balance Sheet : A snapshot of your business's financial situation. For example, as of December 31st, this statement shows how much money you have and how much you owe. This allows you to answer the question, "Is my business healthy or not?"

• Profit-Loss Statement : Shows how much income you earned and how much you spent during a period (for example, a month). Let's say you earned 10,000 TL in income this month and your expenses were 7,000 TL, you would have made a profit of 3,000 TL.