Startup
Startup Accounting in Türkiye: Founder and Investor Guide
Startup finance should keep statutory records, investor reporting and cash runway on one reconciled data foundation.
Key takeaways
- Investor reporting and statutory accounting should reconcile to one source.
- Founder and pre-incorporation costs need evidence before entering the company.
- Share premium, shareholder loans and convertible instruments require separate analysis.
- Runway, burn, revenue quality and cash forecast should be reported monthly.
- Investor metrics should be reproducible from product, contract and accounting data.
- Runway must include commitments, tax and hiring—not only current bank cash.
Important information
This article provides general information and is not legal, tax or investment advice. The outcome depends on the facts, the parties and current legislation.
Build the finance stack before scale
Define the legal entity, chart of accounts, approval flow, invoice system, bank access and monthly close before transaction volume grows. Integrations do not replace ownership and reconciliation.
Control founder and pre-company spending
Document business purpose, date, payer and original invoice. Decide whether an item is reimbursable, capital, a shareholder balance or not a company expense. Avoid informal netting through personal accounts.
Account for the funding instrument
| Instrument | Finance question |
|---|---|
| Share capital | Registration, payment and ownership |
| Share premium | Legal approval and equity classification |
| Shareholder loan | Terms, interest and related-party treatment |
| Convertible instrument | Legal terms and accounting classification |
| Grant | Conditions, recognition and evidence |
Report what investors need
- Reconciled cash and 13-week forecast
- Monthly burn and runway
- Recurring and non-recurring revenue
- Gross margin and customer concentration
- Headcount and committed hiring cost
- Budget variance and funding milestones
Keep tax and payroll aligned
Equity compensation, cross-border software, contractors, R&D, founder pay and customer incentives can create tax or payroll questions. Review the arrangement before payment or contract signature.
Prepare for diligence continuously
Maintain a clean cap table, signed contracts, tax filings, payroll records, IP ownership and board/shareholder decisions. Diligence is faster when evidence is part of the monthly process.
The founder's finance data model
Accounting should meet statutory requirements and also explain product economics. Subscription, usage, project or commission revenue needs a clear link among contract, service, invoice and collection. Cloud, marketing, payment and people costs should be assigned sufficiently to understand gross margin.
Investors typically ask for recurring revenue, churn, acquisition cost, lifetime value, burn and runway. Definitions used in a pitch deck must reconcile to accounting and product data. A metric that cannot be reproduced becomes a due-diligence risk.
Build an investor-ready finance function
- Map each revenue model from contract to cash.
- Code revenue and cost by product, customer and country.
- Close banks, receivables and payroll monthly.
- Separate founder and related-party transactions.
- Maintain cap table, option and investment evidence.
- Report burn, runway, gross margin and budget variance.
Due-diligence red flags
- Personal spending accumulating in shareholder accounts
- Revenue recognised without service evidence
- Software costs capitalised without a policy
- Pitch metrics not reconciling to the ledger
- Tax and payroll risks deferred until fundraising
Four close bridges for a startup
| Bridge | From | To |
|---|---|---|
| Cash to revenue | Bank/processor receipt | Current-period and deferred revenue |
| Funding to equity/debt | Investor cash | Capital, premium or convertible instrument |
| Product cost to asset/expense | Payroll and vendors | Expense or qualifying development asset |
| Cash to runway | Free cash | 13-week forecast and normalised burn |
Illustrative SaaS case
If TRY 1.2 million is collected on 1 July for twelve months of evenly delivered service, July revenue may be TRY 100,000 and the remaining TRY 1.1 million a future-service obligation. Invoice and tax timing are assessed separately.
Runway controls
- Exclude restricted or customer-related cash
- Use a 13-week direct cash forecast
- Normalise one-off funding and expenditure
- Run base, delayed-sales and delayed-funding scenarios
- Link hiring approvals to the minimum-cash threshold
Frequently asked questions
Can a founder pay company expenses personally?
It may be possible, but the invoice, purpose and reimbursement or shareholder-balance treatment must be documented.
Is management reporting separate from accounting?
Its presentation differs, but it should reconcile to the statutory ledger and bank data.
Can every software-development cost be capitalised?
No. The applicable reporting framework and criteria such as development stage, feasibility and future benefit must be assessed.
How should runway be calculated?
Use scenario cash flows that include collections, tax, commitments, planned hiring and investment—not just bank balance divided by average expense.
Official sources
Legislation last reviewed: 1 August 2026
Mikail Ege
Certified Public Accountant · SMMM
Mikail Ege works across accounting, tax, financial reporting, financial advisory, fintech and payment institutions.
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