Translating annual financial statements is a sensitive task, which involves a number of details: let’s break them down.
The financial position and financial performance documents that companies are required to draw up every year together make up the annual financial statements. This document is the key for understanding how sound a company is. But is translating the financial statements really necessary? And if so, what’s the best way of getting the job done? Let us look at how to answer these questions.
A company with an exclusively local/national footprint will not usually need to translate its annual report into other languages. But how many companies work exclusively locally today? Admittedly, fewer and fewer. In our increasingly globalised society, companies have countless opportunities to make international contacts, no matter how big or small. This is why translating their financial statements into other languages, primarily into English, is becoming a must. Apart from often being a legal requirement, translating the statements offers clear additional benefits.
For example, companies may choose to show their annual report to their current or prospective partners, possible investors, and even their customers. If a company operates internationally, these stakeholders may be based anywhere in the world and they will need to be shown impeccably translated financial statements.
As we know, the drafting of company financial statements is subject to stringent and detailed rules. That is why no company would ever entrust this sensitive task to an unvetted accountant. Companies rightly look for highly qualified and skilled professionals, to make sure their financial statements are accurate and error-free in every respect.
The same obviously applies to the translated versions of these documents, which must abide by the same standards and have the same level of accuracy. Just as we would never entrust the preparation of our financial reports at random, we will carefully choose the right translators for the task. Not all translators can do a good job in this area, which requires, in addition to high linguistic skills, in-depth experience and specialisation in corporate accounting terminology, concepts and international legislation and standards. This level of knowledge is only provided by specialised financial and economic translators.
The right professionals for translating financial statements are experienced linguists with several years’ experience in financial concepts and terminology in their working languages. They keep themselves constantly up to date, checking regulatory and terminology developments to meet the present-day needs of companies promptly and accurately.
You can find these professionals within translation agencies specialising in corporate and financial translations. The best agencies have a highly selected team of collaborators with various profiles to respond to a range of translation needs. Their QA-focused, well-structured workflow also means they can meet demands with very tight deadlines, while guaranteeing competitive rates.
Always remember to request a quote so that you can see both timeframes and rates in black and white. This way you will always know how much to budget for your translations, with no last-minute surprises.