great importance in the world of global business
Written by ABC AUDIO on December 2, 2022
Translation of documents holds great importance in the world of global business. It is a critical task, and the company’s accountants, CFOs, and financial controller’ quest for those translators with prior experience in the financial field.
Financial translation requires attention to detail and subject matter expertise to get flawless results as financial documents deal with numbers, so your company’s success and failure depend upon the translation of financial documents. Any error in financial translation can bring disastrous results for your business.
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Importance of Financial Documents
Multinational companies have their subsidiaries in other countries, and the head office needs to devise business plans, sales forecasts, and other financial reports to share with subsidiaries. They also keep into account that accounting practices differ from one region to another. The financial translator should know about the financial system of the country for which they are translating.
It lays an additional burden on the financial translators because they have to provide a financial translation according to the specific country’s financial system and should be accurate and understandable for the end-users.
Importance of Numbers
Financial translation is a game of numbers. The numbers system used in every country is different. The numbering system used in the United States is different from the system used in China and Japan. While translating the financial documents, the translators should know about financial terminologies and the numeric figures. The commas used in different countries also vary. In American English, a comma is used as a separator, for example in 1,800 with a comma inserted.
It is read as one thousand and eight hundred. On the contrary in different parts of Europe, 1800 is read as 1.8 so financial translators need to give attention to details in financial translation because any minute change in number will have a bad impact on financial translation. Moreover, it can turn profits into losses.
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Financial documents need to be kept confidential because it is considered a lifeline of your business. Therefore, hiring a third party for the translation of financial documents is very risky. So, you need to hire a reliable translation service provider that ensures data confidentiality and security. The professional translation companies make their interpreters and translators sign non-disclosure contracts.
They use translation memory tools and make sure that external sources don’t leak any information. The clients for Financial documents select such translation companies that assure their confidential financial data will not be mistranslated, leaked, and tampered with. Translation companies give financial translation documents to such translators that are subject matter experts, responsible and trustworthy because the financial information is secretive.
Financial documents include financial statements, sales projections, fact sheets, business plans, annual reports, shareholder communications, fact sheets, audit reports, and public holding prospectus. The information held in these documents is precious and needs to be kept confidential because your competitors can take advantage of this information.
There are different accounting methods and accounting terminologies used in different countries. Using the correct word with correct terminologies is very important when working on financial translation. Financial translators work with different companies to ensure consistency in glossaries that are to be used in the financial translation of different industries and companies.
The uniformity of financial terms is important in providing flawless financial translations. The financial terminologies are not universal; for example, share capital in the UK and are called common stock in the USA. Trade debtor is used in the UK, whereas it is called accounts receivable in the United States. The capital is called share capital in Russia, and a share of stock is called in France. Stock is the financial term used in New Zealand, and it is called inventories in the United States.
Understanding the concept of financial terminology is very important in financial translation. The translator needs not to translate the terminologies directly, but they should know the exact meaning of the terms. The translators should know where to use specific terms.
If you are in the US and want a financial translation, you need to collaborate with US regulatory organizations like the US Securities and Exchange Commission. This will include translating several forms into English that can only be done by a reliable translation company aware of the industry and the regulations governing them.
Time ConstrainThehe stock exchanges e keep on fluctuating at a fast pace, and the financial statements and reports need to be submitted on time. This way, companies can make their financial strategies and devise a budget on time before their competitors.