Top 6 Documents Financial Institutions Should Translate in 2023
December 13, 2022
4 min read
Whether you’re a financial institution working on behalf of a company or a business yourself, precision and clarity are fundamental when translating financial documents.
You may be swayed to use a quick and cheap online translator tool or deploy a DIY approach to translations. Still, when it comes to detailed and often sensitive material, such as financial information, this could prove to be a frustrating mistake.
If you’re a business working internationally, there are likely many pairs of eyes on your financial documents. From accountants and financial controllers to research analysts, stakeholders, and - of course - shareholders, many people at varying levels, with varying objectives, need to be kept on the same page financially. It’s essential for business direction and growth.
Because of this, selecting a translator with financial industry knowledge is key. As well as being comfortable working with high-level financial material, they’ll also be aware of any industry-specific guidelines and standards to make sure all your documents are above board.
Our team has 20 years of translation experience and comes with specific financial sector knowledge. If you need to translate your financial material, take a look at the documents they’ve listed as being key, and why.
6 Financial Documents to Translate
1. Accounts Receivable Ageing Report
An Accounts Receivable Ageing Report is a list of overdue customer invoices outlining when an invoice was issued and how late it is, along with the customer’s contact information. This is a vital financial document as it helps to manage cash flow and budget.
For this reason, a detailed and clear translation is vital. When all parties who are privy to the document - yet may not speak the same language - are kept on the same page, it becomes easier to push forward with better vendor terms or processes to acquire money.
2. Balance Sheet
A Balance Sheet is a document used to drive the direction of a business. This means it’s likely to be read and used by a wide variety of stakeholders, and if the business works internationally, there may be many languages at play here.
A balance sheet details a company’s assets, liabilities, and shareholder equity.
It is one of three core financial statements (the other two being a Cash Flow Statement and an Income Statement). It’s used to evaluate the performance, and therefore health, of a business.
For this reason, it should be precise and straightforward, detailing only important and relevant information.
3. Budget Report
The Budget Report allows companies to compare their actual spending against what they budgeted for, over a specific period.
This helps to monitor key performance indicators (KPIs), while ensuring you can better prioritize financial goals when replenishing stock, setting prices, or creating advertising campaigns.
Consider this document a star player in terms of keeping everyone aligned and working towards the same business goals, whatever they may be.
A Business Plan is a document that sets out your business’s future objectives, as well as the strategies and processes you’ll put in place to achieve them.
Again, this needs to be completely clear and coherent for all reading, no matter the language. Ensuring translations are precise, contextual, and accurate is fundamental in keeping everyone on the same page.
5. Cash Flow Statement
A Cash Flow Statement tracks the amount of cash and cash equivalents entering and leaving your company.
It’s a vital financial document that helps you to meet your existing financial obligations while helping you plan for the future.
A precise translation of this document means everybody can see what’s achievable; otherwise, you may find multiple stakeholders and employees in the business driving different priorities.
6. Income Statement
Also known as a Profit and Loss Statement, the Income Statement shows your company’s revenue and expenditure. It can be used to compare the business’s performance quarter-on-quarter and year-on-year.
As an indicator on profitability, this is a key document to help inform business decisions and will likely have many eyes on it. For this reason, it should be articulated clearly, with the appropriate level of detail, in a reader’s own language to avoid any ambiguity.
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When it comes to translating financial material, precision, accuracy, and quality are essential. This is complex content that requires care and specialist attention.