Financial Advisor Profession Definition and Authorities
Who Is a Financial Advisor (Mali Müşavir)?
A financial advisor (in Turkish: Mali Müşavir) is a professional who organizes, analyzes, audits, and provides consultancy regarding the financial transactions, accounting records, tax declarations, and financial statements of businesses belonging to natural and legal persons, in accordance with the applicable laws and regulations. This title is regulated under Law No. 3568 on "Certified Public Accountancy and Sworn-in Certified Public Accountancy" in Türkiye. Financial advisors not only manage the financial infrastructure of companies, but also ensure business sustainability in compliance with legislation, oversee tax compliance, and help business owners make informed financial decisions.
Types of Financial Advisors
The financial advisory profession in Türkiye is a critical discipline that ensures financial reporting, tax regulations, and accounting operations are carried out within a legal framework. This profession is divided into two main titles based on duties and authorities: Certified Public Accountant (Serbest Muhasebeci Mali Müşavir - SMMM) and Sworn-in Certified Public Accountant (Yeminli Mali Müşavir - YMM). Both titles require mastery of financial legislation, ethical responsibility, and professional expertise, although they differ in responsibilities, scope of work, and level of authority.
Certified Public Accountant (SMMM)
What Is an SMMM?
SMMMs are professionals who work independently in their own offices or as employees of companies, handling their clients’ accounting, tax, and financial transactions in accordance with legal regulations. They provide accounting services, prepare tax declarations, keep records, generate financial statements, and prepare various reports.
How to Become an SMMM?
Educational Requirement: A bachelor's degree from a four-year program in fields such as business, accounting, economics, finance, law, public administration, political science, or banking.
Internship Entry Exam: Graduates must pass this exam to begin a mandatory 3-year internship (2 years if the candidate holds a master's degree).
Internship Period: During this period, candidates gain hands-on experience working in accounting firms or companies.
Proficiency Exam: Upon successful completion of the internship, candidates must pass a professional competency exam to receive their SMMM license.
Registration with TÜRMOB: Licensed individuals must register with their local Chamber of Certified Public Accountants and the Union of Chambers of Certified Public Accountants and Sworn-in Certified Public Accountants of Türkiye (TÜRMOB).
Sworn-in Certified Public Accountant (YMM)
What Is a YMM?
YMMs are professionals who have worked actively as SMMMs for at least 10 years and passed a comprehensive exam, followed by taking an oath in the Commercial Court to earn the title. YMMs are authorized to perform tax audits on behalf of the government, handle VAT refund procedures, and carry out certification processes.
Steps to Become a YMM
Work actively as an SMMM for at least 10 years.
Pass the rigorous YMM exam, which consists of 10 subjects. Candidates must score at least 50 in each subject and achieve a total score of at least 650.
Take an official oath at the Commercial Court to become a registered YMM.
YMMs cannot keep accounting records, open their own offices, or operate independently like SMMMs. However, they may carry out higher-level tasks such as audits, certifications, and tax examinations.
What Does a Financial Advisor Do?
The duties and responsibilities of financial advisors are outlined in Article 2 of Law No. 3568.
Primary Duties Include:
Setting up and developing accounting systems for companies
Recording income and expense invoices
Processing bank transactions and performing monthly reconciliations
Preparing balance sheets and income-expenditure statements
Preparing and submitting monthly, quarterly, and annual tax declarations
Handling employee social security registration/deregistration and preparing service statements
Delivering accrual slips to clients
Managing company procedures such as establishment, mergers, and liquidation
Preparing special reports for VAT refunds or capital increases
Conducting audits and serving as an expert witness
Following up on financial transactions with official institutions
Legal Consultancy and Reporting
Financial advisors are not limited to maintaining financial records; they also provide analysis, interpretation, and strategic consultancy services. In today’s business world, financial advisory has evolved into a comprehensive field of expertise that manages not only accounting processes but also legal compliance and financial health. Advisors guide businesses in tax planning, financial structuring, cost analysis, and budgeting. They also help companies adapt to changes in legislation, minimizing potential risks. Through regular reporting, they provide managers and stakeholders with accurate and timely financial information, supporting effective decision-making processes.
Software and Technological Competencies Required by Financial Advisors
Modern financial advisory work is conducted entirely in digital environments. Therefore, a financial advisor must be proficient in the following:
Pre-accounting software
e-Ledger, e-Invoice, and e-Archive systems
Excel and financial analysis tools
e-Declaration and e-Notification systems
General computer proficiency, document management, digital filing, and data analysis
Personal and Professional Qualities of a Financial Advisor
Key qualities for a successful financial advisor include:
Attention to detail, precision, and organization
Strong time management skills
Analytical thinking
Keeping up with current legislation
Ability to work as part of a team
Quick decision-making and crisis management skills
Ethical commitment and a strong sense of responsibility
Differences Between Certified Public Accountants (SMMM) and Sworn-in Certified Public Accountants (YMM)
The SMMM and YMM titles represent two different levels of expertise in Türkiye’s financial advisory profession. Key differences include:
Independent Practice: SMMMs can work independently and open their own offices; YMMs cannot and must work as part of a company or partnership.
Bookkeeping Authority: SMMMs can keep official books for clients, while YMMs cannot.
Audit Authority on Behalf of the State: YMMs can conduct financial audits on behalf of the government; SMMMs cannot.
Certification Rights: While SMMMs can perform limited certification tasks, YMMs have much broader certification authority, including approving critical reports such as VAT refund claims.
Exam Process: Becoming an SMMM involves a two-stage exam process, while becoming a YMM requires passing a more extensive exam covering 10 subjects. Additionally, one must have at least 10 years of experience as an SMMM to qualify for the YMM title.
Right to Open an Office: SMMMs can establish their own accounting offices, whereas YMMs can only operate as part of a partnership or under a business entity; they cannot open personal offices.
Conclusion
The financial advisory profession plays a vital role in preserving and enhancing the financial health of businesses, requiring expertise in the application of complex regulations. The differences in authority and responsibility between SMMMs and YMMs reflect the breadth and depth of the profession. Today’s financial advisors adapt to technological developments and go beyond traditional record-keeping by providing strategic consultancy and ensuring legal compliance. From this perspective, the professional services offered by financial advisors are among the key pillars of success and sustainability for businesses.
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