14 Feb Important Factors of a Financial Translation
English may be the most widely accepted language in global business, but when dealing with sensitive financial information, these documents should not be left up to interpretation.
Financial translators do more than rewrite content from a source document into a target language. Financial translation needs to be precise and exact. From white papers and business plans to income statements and tax reports, this market requires versatile language specialists to work in specific industry areas, depending on their skills.
FINANCIAL TRANSLATION PROJECTS CAN INCLUDE A WIDE RANGE OF DOCUMENTS, IN MULTIPLE NICHES, INCLUDING:
Real Estate – listings, home loan documents, financial paperwork, income statements.
Insurance – regulatory documents, annual reports, auditor’s reports, retirement plans, other documents related to insurance.
Economics – white papers, market studies, analysis, macroeconomics, the economics of a particular state.
Banking – commodities, foreign exchange, public and private offerings, disclaimers, disclosures.
Business and Accountancy – cash flow statements, business plans, balance sheets, financial agreements.
Investing – Prospectuses, bonds, equities, reports for the Securities and Exchange Commission.
Taxes – International Financial Reporting Standards (IFRS) documents, tax reports.
KEY CHALLENGES IN DOING FINANCIAL TRANSLATIONS
Businesses are turning to professional translation teams to ensure that their financial translations are exact, meet financial codes and regulations, and maintain data security.
- Changes in financial terminology
Few industries have seen so much innovation as the financial system in the past 30 years. From financial services companies going global to implementing blockchain technology, the financial markets across the globe handle many new changes every day.
In this light, financial translators can’t keep up with their clients’ needs without continuous research. For example, if the new terms do not have equivalents in other languages, the financial translator must be able to draw from their own experience in the field to find a word or phrase that will be equivalent to the new term.
- Differences in formatting
Document formatting for some may not matter but in other countries or even in other companies, formatting matters. A payslip in the United States, for example, will be different from a payslip in France. Therefore, when translating financial documents, it is essential that the translator be knowledgeable in the formatting requirements of each country or company.
- Economic fluctuations and currency exchange rates
The financial translator should always be up to date when it comes to currency exchange rates which can fluctuate greatly based on the economic conditions in the countries using the specific currency. When doing the translation, the translator has to factor in the most current currency exchange rate to ensure that the information is accurate.
- Confidentiality counts
Language experts often work with sensitive company data, and never more so than when working on a financial project. With access to details about a clients’ financial information or unannounced business dealings, financial translators must proceed with respect and care for secure information.
- Local, federal, and global regulations
A sharp eye for details and in-depth knowledge of the local financial environment can save translations from failure. In most European countries, for instance, commas are decimal separators, while in places like Switzerland and Liechtenstein, the point is the decimal separator and an apostrophe separates the thousands. These small details are a major aspect of financial documentation and require unique industry experience to pinpoint.
WE KNOW FINANCIAL TRANSLATIONS
A small mistake may be acceptable in many industries but could cost a financial institution millions. TB Translations knows We establish rapport with clients early so that we can build a close working relationship. Fully understanding the needs of the clients helps make the translation process faster and smoother, resulting in highly accurate work that uses the right terminology the client uses.
Our translators are native speakers and we can connect you with a subject matter expert to handle your specific business translation requirements quickly.