What Is the Balance Sheet Method? Comprehensive Accounting Guide
The balance sheet method is one of the two fundamental accounting recording methods defined by the Turkish Tax Procedure Law (VUK). This method reports a business's assets, liabilities, and equity at period-ends through balance sheets and income statements. All businesses in Turkey exceeding certain revenue thresholds are required to keep books using this method.
Balance Sheet Method vs. Operating Account Method
Understanding accounting methods is the first step to managing your business's financial structure effectively.
| Feature | Balance Sheet Method | Operating Account Method |
|---|---|---|
| Books required | Journal, general ledger, inventory | Operating account book |
| Reporting | Balance sheet + income statement | Simple income-expense summary |
| Detail level | All assets and liabilities detailed | Only income and expenses |
| Requirement | Businesses above revenue threshold | Small-scale taxpayers |
Books Required Under the Balance Sheet Method
1. Journal Book
The journal book records all daily financial transactions in chronological order using the double-entry bookkeeping method.
2. General Ledger
The general ledger classifies journal entries by account, allowing instant balance tracking for each account.
3. Inventory Book
The inventory book contains detailed lists of assets and liabilities at the beginning and end of each period.
e-Ledger and the Balance Sheet Method
The e-Ledger application enables taxpayers subject to the balance sheet method to keep their journal and general ledger electronically. e-Defter PRO simplifies this process by supporting 50+ accounting software integrations and automating GİB submissions.
Last updated: April 22, 2026 — e-Defter PRO Content Team