02 Sep Tips on How to Translate Certified Financial Statements(Last Updated On: September 2, 2019)
Imagine if you tried to balance your budget without actually planning your expenses. It would all turn into a disaster, right? When you don’t keep a record of every penny that you brought into the house and every penny you spent, things are going to fall apart and your bank balance will end up in the negative. Budget planning is becoming more and more important in a world where inflation keeps going up and nobody gets paid enough. A lot of people in this world can’t buy clothes every month but by managing their expenses, they can buy them sometimes at least. Without planning and saving, you won’t be able to buy anything except groceries your whole life. Even groceries include the absolutely essential items.
A lot of things that we used to consider necessities as children become luxuries in adulthood when we are earning ourselves and have bills to pay. But instead of blaming the world for this messed up economic divide, we can do something ourselves to make our lives easier. And financial planning is not only important for individuals but also for businesses. In fact, fiscal planning is more important for businesses than it is for people. A person only has their own expenses to take care of but a business has to take care of the expenses and employees’ salaries.
Businesses also suffer loss and if they don’t plan ahead, they won’t be ready for it. No business can ever avoid loss completely but with the help of planning, it can prepare for it Fiscal planning is important for companies for various reasons. For starters, it keeps the financial matters straight. No one can remember the details about employees’ salaries. Neither can anyone remember all the dues they have to pay and money they have to receive. Keeping track of these issues help a lot. It also allows businesses to plan for the future. When business owners have the records in front of them and they know how much profit their company is making monthly, they can decide about future investments in a better way.
Stagnation is death and that’s why businesses need to keep trying to succeed or they will fall behind and someone else will take their place. This is why knowing about your company’s finances is so important. The most vital financial documents of a company are financial statements. Financial statements are a record of the company’s performance over a specific period of time, mostly a year. The records are often compiled in an Excel or Google Docs sheet. They help the company keep track of its financial progress. The statements are also useful during auditing conducted by government agencies and accountants. The auditing helps prove the accuracy of the records and also aids the tax process. It is also essential for investment purposes.
The things included in these fiscal records are balance sheets, cash flow statements, and income statements. In simple terms, the records include the expenses or dues, income, and profit. It can help you figure out what is left behind once the dues are paid with the income. The statements depict the performance of a company and that’s why a lot of parties are interested in them. Potential investors, shareholders, workers, and owners, everyone likes to see the fiscal statement to understand where the company stands. But sometimes, it is difficult for a business to show its statements to all the interested parties due to language differences.
Tips on How to Translate Financial Statements:
If you are running a multinational corporation, you will have employees and shareholders that speak different languages. So, when you have to release your financial statements, you will need their translation. You want the shareholders and employees to feel a part of the business and for that, they need to know how the company is actually doing. If you have to translate such statements, here are a few tips:
- You have to be a qualified translator with enough knowledge about financial matters. If you can’t understand the accounting terms, you won’t be able to interpret them and their meaning will be lost on everyone reading the translations. You must have experience working in the field of business and accounting field so you can perform your task with accuracy.
- When the documents you have to translate are financial statements, you will have to do certified translation. That means, the translation should be attested by you to prove that it is accurate representation of the original paper according to the best of your understanding.
- Follow the governing regulations of the country or region where a business is operating from. And in order to follow them, you must be familiar with them already.
- Protect the privacy of your clients at all costs. Financial statements contain sensitive information and when a business hires a translator, they expect work done in complete confidentiality. Make sure that you don’t disappoint them.
- Stay relevant at all times. Do not deviate from the meaning of the original document. Do not insert unnecessary information. And do not try to explain terms. Your job is to translate the statement, not to explain the terms to the readers.
A qualified translator with experience in the accounting field can tackle your financial statements easily. But if you can’t find an interpreter yourself, it is better to get in touch with a language service provider and let them find you the perfect candidate for the task.