Financial companies engage in various types of partnerships, whether it’s mergers, acquisitions, or joint ventures. All of these endeavors require a transparent financial exchange, also known as a financial statement.
However, if one of the companies is foreign, it’ll require a translated version of these financial documents. That’s where financial statement translation services come in.
If you’re interested to learn more, we’ll cover everything you need to know about these services and where to find the best service provider.
Financial Statement Translation Services
If you’re not familiar with the term, a financial statement is an official record that represents an entity’s financial status. It offers a summary of its financial performance over a specific period of time.
These types of records are crucial for investors looking to put their money in a certain company, as they need accurate financial information to ensure they make the right investment.
That’s where financial statement translation comes in. If an investor is looking to put their money in a foreign company, they’d need a translated version of the financial statement. Naturally, that statement would need to be translated with the utmost accuracy. After all, one small error can prompt investment based on false information, which can harm your partnerships and company dynamics.
ATS is a certified translation office for accurate financial statement translation. Contact us today to secure global business success.
Why Accurate Financial Statement Translation Matters
Let’s see why the translation of financial statements emphasizes accuracy more than other types of translation.
Building Investor Confidence
As previously mentioned, investors rely on financial statements to assess a company’s financial performance and identify whether it’ll bring them profit or not. So, when investors are interested in putting their money in a foreign company, they need accurately translated financial statements.
Accuracy is crucial here because an inaccurate financial statement would paint an unrealistic picture of the company, prompting investments that occur in bad faith. That’s why translators need to ensure investors have a clear understanding of the company’s financial status to make their investments with confidence.
Ensuring Compliance with International Regulations
When companies produce financial statements, they follow strict international rules, set by the IFRS or GAAP, to represent the data properly. These rules determine how that data is recorded and reported and how a company’s assets and liabilities are shown.
The translations must also abide by these standards. If a technical term is mistranslated or a number is written in the wrong format, that translation is considered not compliant with the international standards.
In that case, the company could be facing legal issues, financial penalties, and credibility loss.
Facilitating Partnerships
If there’s one thing international businesses emphasize for success, it’s clarity and transparency. When two companies engage in mergers, acquisitions, or joint ventures, they need to convey a clear picture of each other’s financial status.
Otherwise, neither party would be able to assess potential gain, debt, or growth. That’s where translating financial statements comes in. It breaks this language barrier, presenting the needed information in languages all parties can understand, prompting full transparency.
Types of Financial Statements
Not all financial statements are made equal. There are various types of statements, with each offering different information. Here are the most common types:
Balance Sheet
A balance sheet is a document that provides potential investors and stakeholders with an accurate picture of the company’s financial standing at a specific point in time. That’s usually the last day of the reporting period.
A balance sheet often focuses on three financial aspects: the company’s assets, liabilities, and stakeholder equity. That’s usually the standard equation: Assets = Liability + Stakeholder Equity.
Income Statement
The point of an income statement is to answer one question: Did the company make money? That’s why it usually covers financial aspects related to that question, including revenue, expenses, earnings per share, and net income in a specific period, like a quarter of a year.
That statement helps stakeholders get an accurate view of the company’s financial health and how successful the management has been in running its resources by comparing the income statements across different periods.
Cash Flow Income
This statement’s name makes it sound like the income statement, but this one covers the cash movement in a company over a specific period of time. The purpose of this statement is for the stakeholders to know where the money is coming from and how the management is spending it.
That’s why it usually covers three main criteria:
- Operating activities: Cash gained from daily business activities.
- Investing activities: Cash spent on/earned from investments.
- Financing activities: Cash gained through loans, shares, or repayments.
Statement of Shareholders’ Equity
Statement of Shareholder’s Equity is a document that complements the balance sheet, as it reflects how a company’s equity changes throughout the reporting period.
Who Needs Financial Statement Translation Services
Plenty of individuals and entities need financial statement translation services. These include:
Financial Documents We Translate
We offer comprehensive financial translation services, where we tackle various types of documents, including:
Regulatory and public findings:
Corporate financial statements:
Investment & fund documents:
Tax & treasury documents:
Our Methodology in Financial Translation
Quality is the heart and soul of our services, and each step we take in the translation process ensures we produce nothing but the highest possible quality.
We start by assigning your projects to translators who specialize in financial translation services and are most familiar with the complex terms and concepts in that field. They translate your documents, keeping the context, intent, and targeted culture in mind.
Once the translators are done, we send the project to our professional editors/proofreaders to make sure the translation is error-free. That’s not where our process ends, though.
As a last precautionary measure, we send our work to our quality assurance specialists to ensure that your translation meets your standards in every way.
Why Choose Us
Now you know all there is to know about financial statement translation services. The only remaining question is: Why choose Alsun Translation Services?
Skills Meet Technology
AYes, translation is all about skills, knowledge, and experience. However, with all the available tools at our disposal today, it’d be a crime not to incorporate technology into our process.
Whether it’s SDL Trados, MemoQ, or Memsource, we use whatever tools necessary to give you high-quality translation.
Competitive Prices
We believe high-quality translation shouldn’t be available to only those who can pay high prices alone. That’s why our services come with competitive prices without sacrificing quality.
Quick Turnaround
You’ve probably heard the saying “quality takes time” before. While we believe in that saying, from what you’ve read so far, you can tell that we’ve optimized our translation process to offer the highest quality in the shortest time.
Languages and Formats We Support
With +15 years of experience in the translation industry, we’ve built a diverse team that offers translation of financial statements in various languages:
And more! We also support any translation formatting you’d like us to use.
Conclusion
Ultimately, financial statement translation services require the utmost knowledge, skills, and experience. So, you need to choose an agency with the right expertise. That’s what ATS offers.
With machine-assisted quality, competitive pricing, and a quick turnaround, we offer more value in our work than any of our competitors. Now, give us a call, get our quote, and wait for us to give you the quality you’re looking for.
Frequently Asked Questions
How to translate financial statements?
We send your documents to a specialized translator to ensure the highest quality. Then, editors and quality assurance specialists review the translation to ensure it’s error-free.
What are the methods of translation of financial statements?
Every agency has its own workflow, but we follow a multi-stage process, where we start with specialized translation, and then bring professional editors and quality assurance specialists to refine it.
What type of files do you work with?
We work with various types of files, including Word, PowerPoint, Excel, PDF, InDesign, HTML, and more.