This is the time of year when companies start to request the translation of their annual accounts. In this post we will discuss how to go about translating this type of economic and financial information. Take note!
What are annual accounts?
They are documents that report on a company's financial activity during each financial year and are available to everyone connected with the company. Annual accounts consist of the following documents: the profit and loss statement, the statement of changes in equity, the balance sheet and the annual report.
Annual accounts are typically presented in three formats:
- A model specifically for SMEs: a simplified model that can be certified by an account auditor, according to size, turnover and provisions applicable to the company.
- A model for large corporations: the annual accounts are audited and in the format of consolidated or non-consolidated financial statements.
- A foundations model: these vary in the formal auditing requirements and in the description of items such as profit and loss, in addition to applicable exemptions in corporation tax.
The importance of reviewing annual accounts
The translation of annual accounts is a highly complex task due to the terminology used and the different models available. They also contain several charts that require formatting, which further complicates the translation. As this type of document contains a large amount of numerical data, it is extremely important to revise the translation thoroughly to ensure that all the translated figures coincide with those in the original document. Our translation tool automatically validates the figures in the documents, thus reducing the need to run manual checks and, as a result, the risk of errors.
If your business is part of a multinational company or if it has subsidiaries abroad, you will probably need the help of a professional translation agency. Specialised financial and legal translators will translate your annual accounts, and this will help you to build a more financially transparent organisation. Do you already work with one?