Westernization process in the Turkish accounting system from Tanzimat to the First World War (1839-1918)

Accounting usage dates back to the early periods when humans transitioned to settled life and began living in communities. When we look at the historical development of accounting, it is possible to see that it goes back to the earliest periods of history. It is stated in the sources that the first findings of accounting were found in the Mesopotamia region. Becoming a significant part of economic life, accounting has developed significantly in terms of methods and techniques due to economic and social advancements, continuing until today. The double-entry bookkeeping accounting method used today was developed by Luca Pacioli in the 15th century, gaining a more systematic nature. Before this method, accounting records such as income and expenses were recorded unilaterally in ledgers. The development of international trade, economic diversification, and the emergence of new transaction types led to an increase in the number and complexity of accounting transactions. With double-entry bookkeeping accounting, where accounting records are made in two directions, the opportunity to check the accounting results against each other emerged, minimizing the number of errors in accounting records. In this study, the relationship between the developments in accounting in the Ottoman Empire after the Tanzimat Era and the financial and economic developments has been examined, and attempts have been made to determine the impact of developments in accounting practices and methods on the financial and economic structure. In the first part of the study, the economic understanding adopted by the Ottoman Empire from its establishment and the institutional structure formed within this framework have been examined. In the second part, economic, political, legal, and financial developments and institutional structures that prepared the period after the Tanzimat, which is the main focus of the study, have been examined. The third part discusses the developments in accounting after the Tanzimat and examines the relationship between the double-entry bookkeeping accounting method and the economic structure, as well as its contributions to the Ottoman economy.