The need for financial translation can’t end in the business world today. This is because businesses need to communicate all financial dealings to entire world with clarity. Therefore, accurate financial translation is essential in ensuring transparency and prosperity.
What is financial translation?
Financial translation simply refers to converting financial information from one language to another. Financial translation is done by skilled financial translators with great experience in the field of finance. As its seen that business communities today prefers conducting transactions overseas, its necessary for them to disclose their financial stands in native languages of the target clients. For instance, Pepsi cola company has many out lets in most countries in the world. Therefore, its a requirement for Pepsi cola company to publish annual financial reports in each native language. In addition, finance is a critical language that should be handled with great care. Therefore, it should only be handled by trained professional financial translators to avoid financial errors. Therefore, Pepsi cola company and other businesses should translate financial documents to ease understanding by target speakers
Importance of financial translation
In the first-place, people today need to do business on global basis. However, some countries have specific financial guide lines regarding formatting, numbering and use of certain terminology. In addition, financial concepts and language vary from one country to another. In fact, it’s not easy for foreigners to understand such formats, concepts and terminologies in financial reports and other documents. Therefore, business operators should employ professional financial translators to formulate the correct nomenclature for different countries depending on clients’ demand.
Growing business across the world today has made banking sector famous. Folks prefer transacting through banks rather than other means. However, some transaction documents are written in the foreign language that some clients do not understand. And yet the obligation of expanding market share is growing day and night. Therefore, to achieve this objective in today’s competitive business, bank owners should write bank statements, balance sheets, trade agreements and other documents in the language which their clients easily understand. As a result, business will gain trust from target clients leading to increased return on investment.
On the other hand, financial regulatory bodies of some countries require all financial institutions to publish their financial reports. This is an act of consumer protection. For instance, Bank of Uganda requires every financial institution to publish financial reports at the end of every financial year. This is done to judge the performance of institutions. In case of any liquidation of the any financial institution, Bank of Uganda reserves authority to revoke the license and take over the management of such institution. Actually, this led to the closure of Crane bank on 20 October,2016. Therefore, financial institutions should employ financial translators to bring out the true picture in financial reports to avoid errors and public misconception of the performance of the institution.
Users of translated financial documents.
The key users of translated financial documents include the following.
- Financial Regulatory Authority
- Tax collectors
- Insurance bodies
Financial documents to be translated;
- Annual profit reports
- Business agreements
- Bank statements
- Audit reports
- Regulatory statement
- Shareholders reports
Conclusively, financial translation is very essential in creating large market share and instilling trust and confidence in to the target clients.