2007/11/26

Financial Information And Financial Translations

The language of mathematics, statistics and physics, are as you would expect, universal. In a similar vein, you would probably expect the language of accounting and finance to be universal, however, this is not necessarily so; although core financial principles are the same worldwide, there are variances in how these are calculated, how they can be presented and how they are interpreted.

For a financial translator this might, as you can imagine, prove somewhat challenging, however, any translation undertaken by a good agency that offers a document translation service specifically for financial documents, will have translators who are qualified in accounting, thus helping to negate any potential misunderstandings.

What every financial translator will always be keeping in mind during his translations, are the following guiding points; the purpose of keeping financial information and who the end user is likely to be; let us consider the same.

The whole purpose of financial information is that it details where money has come from and where it has been spent; the reason that this information is useful is that:

• Accurate financial records help businesses to be run efficiently. Against a backdrop of specific timeframes, businesses must ensure the collection of money that it is owed and remit money that it owes to others. Additionally, by formally recording businesses assets, this helps to confirm a businesses worth and to keep the assets themselves secure.

• Financial information acts as a measure of performance. Because modern businesses usually have multiple owners, the owners never usually involve themselves in the running of the business; this is done by appointed managers. A company's accounts can, therefore, quantify their performance by comparison with the accounts of previous years.

• Financial records provide information about a company's recourses and activities to many groups of people who might require this data.

There are various user groups to whom a company's financial information might be of use; let us now examine some of these:

• As you might imagine, the first of these groups is the management of the company concerned; information about the company's current and possible future position will assist in making strategic planning decisions.

• The shareholders would certainly want to be aware of their company's performance; their level of dividend will rest on this information.

• Trade contacts would need a company's financial details in order to assess their creditworthiness.

• Banks or other providers of finance / loans would definitely require this information.

• The Inland Revenue would need this information in order to assess a company's tax liabilities.

By always keeping the purpose and uses of financial information firmly in mind a translator will always be assured of passing on, not only the factual information contained within a source text, but also the spirit and intention inherent in its production, thus arriving at a true rendition of the work.

Jack Waley-Cohen is the Operations Director of Lingo24 Translation Agency, a provider of high quality document translation service.

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