What is e-Bookkeeping? A New Step in Legal Compliance and Digitalization Process

Share:

E-Ledger Digitalization Process

In recent years, digitalization has gone beyond being a mere step in the business world and has become the foundation of transformation in many sectors. In Turkey, the digitalization of financial processes has gained momentum to make tax compliance and auditing processes more efficient for businesses. The e-Ledger system is one of the most critical components of this transformation. As of 2023, 60% of businesses in Turkey obligated to keep statutory books have transitioned to digital ledger systems. This percentage signals a growing trend expected to increase further in the coming years.

The e-Ledger system allows businesses to maintain their statutory books in digital form using software approved by the Turkish Revenue Administration (TRA). This digital transformation process enables faster and more secure tax audits while significantly reducing paper usage. In 2022, it was reported that paper usage in Turkey decreased by 30% due to digitalization, highlighting the environmental benefits.

The e-Ledger system not only facilitates tax audits but also transforms business operations by offering cost savings, data security, and faster processing.

What Is E-Ledger?

E-Ledger is a software system that allows businesses to maintain their statutory books in digital form. This system enables the creation of statutory books such as the general ledger in formats specified by the TRA. These ledgers are secured with a digital signature or financial seal and approved by the TRA. This process is crucial to ensure compliance with tax audits and guarantee the accuracy of records.

The primary goal of the e-Ledger system is to enable businesses to manage their accounting transactions digitally, securely, and within the legal framework. Additionally, digitally stored ledgers eliminate the need for physical storage space and contribute to faster business processes.

E-Ledger and Its Core Features

Digital Ledger Creation

Statutory books such as the general ledger are prepared digitally. These digital ledgers are the electronic versions of manually written books and are formatted according to TRA regulations.

TRA Approval

Businesses submit their e-Ledgers for TRA approval, and these ledgers are secured with a digital signature or financial seal. This ensures the legal validity of the ledgers and prevents issues during tax audits.

Long-Term Storage

E-Ledgers must be stored digitally for at least 10 years. This facilitates easy access to historical records during tax audits and helps businesses fulfill their legal obligations.

Advantages of E-Ledger

The e-Ledger system provides numerous advantages, making record-keeping more efficient, secure, and legally compliant for businesses.

Cost Savings

E-Ledger usage eliminates additional costs such as paper, ink, and filing expenses. Moreover, digital ledgers do not require physical storage space, leading to office space savings.

Legal Compliance and Reliability

E-Ledger is fully compliant with the Turkish Commercial Code and Tax Procedure Law. With TRA approval, businesses ensure their ledgers are reliable and systematically maintained for tax audits.

Quick and Practical Access

E-Ledgers can be accessed anytime in a digital environment. This allows for swift processing during tax audits or when audit requests arise.

Eco-Friendly Solution

By reducing paper usage, e-Ledgers offer an eco-friendly solution. Digital ledgers reduce the carbon footprint, showcasing a business's commitment to environmental responsibility.

Data Security

E-Ledgers are protected with digital security measures, eliminating the risk of data loss or tampering. Additionally, data backups enhance security further.

How to Maintain an E-Ledger?

Obtain a Financial Seal or Digital Signature

Businesses must obtain a financial seal for legal entities or a digital signature for individuals to ensure the security of their ledgers.

Apply to the Turkish Revenue Administration

Businesses need to apply for the e-Ledger system through the TRA's online platform.

Use Compatible Software

E-Ledgers are maintained using TRA-approved compatible software, ensuring the ledgers are prepared in the specified format.

Prepare Ledgers

Businesses must digitally prepare their general ledger documents at the end of each month following TRA regulations.

Storage Obligation

E-Ledgers must be stored digitally for 10 years and presented for tax audits when necessary.

Who Is Obligated to Use E-Ledger?

Taxpayers Using the E-Invoice System

Businesses that have adopted the e-Invoice system are required to transition to the e-Ledger system in the following year.

Companies Subject to Independent Audits

Businesses obligated to undergo independent audits must also use the e-Ledger system.

Businesses Keeping Books Based on Balance Sheet Principles

As of 2025, businesses keeping books according to balance sheet principles must transition to the e-Ledger system.

Conclusion

The e-Ledger system represents a significant milestone in the digitalization journey of businesses. Developed in compliance with the Turkish Commercial Code and Tax Procedure Law, this system offers businesses the opportunity to ensure legal compliance and manage tax audits more efficiently. With the use of digital ledgers, advantages such as reduced paper usage, enhanced data security, and faster tax auditing emerge.

In Turkey, an increasing number of businesses are transitioning to the e-Ledger system, marking a significant step in the digitalization process. The 60% adoption rate of digital ledgers as of 2023 reflects the rapid spread of this transformation and its emergence as a necessity in the business world.

E-Ledger not only helps businesses meet their tax obligations but also provides cost savings, eco-friendly solutions, and a secure digital environment for managing business processes.

This digital transformation process goes beyond fulfilling legal requirements and offers long-term competitive advantages for businesses. While e-Ledger assists businesses in operating more efficiently, securely, and sustainably, it is clear that businesses failing to adapt to digitalization may risk falling behind. E-Ledger is not merely a legal requirement but a significant step toward the digitalization of businesses. This system plays a critical role in shaping future digital transformation processes.