Balance Sheet Translation: Comprehensive Business Management

Balance sheet translation is a popular service utilized by both domestic and international businesses. This solution allows overseas investors to easily monitor and control the company’s operations. Allow Thao & Co. to shed a light on balance sheet translation services in this article.

What exactly is balance-sheet translation?

A balance sheet is a comprehensive financial statement that shows the enterprise’s existing assets as well as the source of such assets.

In other words, these are reports that showcase a company’s business activities as well as the results of its financial activities and liabilities. Typically, balance sheet is prepared at the conclusion of each quarter or year.

Balance sheet translation, like other text translation services, entails translating the full content of the sheet from the source language to the language requested by the client. This process necessitates tremendous care and accuracy, especially when it comes to vital documents related to state regulations, such as balance statements.

When do you need balance sheet translation?

The balance sheet is an essential report for understanding the company’s operations in depth. This is the norm for multinational enterprises.

Balance sheet translation services are consistently prioritized since they make it easier for international investors to grasp information and make judgments, as well as proper business development strategies.

Furthermore, according to Accounting Law, financial statements and balance sheets are documents that must be completed at the end of each fiscal period. To make a summary report, the enterprise’s head office must translate the financial statements provided by foreign branches.

These documents will be submitted to tax authorities, posted publicly on exchanges, or used to bid on domestic and international projects. This is considered an important part in corporate financial management process.

Balance sheet translation is extremely beneficial in managing a firm, some fundamental advantages include:

1. ● Clearly present the company’s financial situation
2. ● Ensure compliance with international accounting regulations
3. ● Facilitate information exchange
4. ● Attract foreign investors
5. ● Promote international collaboration

Rules when translating the balance sheet

Financial documents come with their own translation requirements; below are the guidelines that translators must strictly adhere to:

1. ● Using the correct terminologies: because the balance sheet is a critical document presented to tax authorities, translators must ensure that specialized terms are translated correctly while avoiding spelling and semantic problems.
2. ● Ensuring the accuracy of numerical figures: due to the uniqueness of this type of document, numerical figures in the report must be translated with total accuracy.
3. ● Ensuring the confidentiality of document information: information in the balance sheet is highly confidential and sensitive. As a result, it is critical to ensure that all content in the document is kept strictly confidential.
4. ● Maintaining the layout and currency of the original sheet: To maintain consistency, the balance sheet will often be presented in a premade layout, making it vital to preserve the layout as well as the currency units used in the original version.
5. ● Reviewing and proofreading: to achieve a flawless translation, after completing the translation, meticulously verify the entire content, especially vital figures and accounting information.

Aside from the requirements stated above, the translation process must include modifications to data such as assets, liabilities, and equity to reflect variances in accounting standards or economic conditions between domestic and foreign countries.

To accurately depict a company’s financial condition, assets and liabilities must be translated at original cost or market value, while equity may need to be translated using methods such as weighted average cost of capital or other valuation approaches.

Furthermore, if the translation is to be utilized for international purposes, the translator must follow international accounting regulations during the translation process. Here are 3 basic rules of international accounting:

1. ● International Accounting Standards (IAS): This standard, which has been in place since 1973, was created to assist businesses in determining how to record each economic transaction that occurs in the financial statements. However, since 2001, businesses have gradually transitioned to IFRS standards.
2. ● International Financial Reporting Standards (IFRS): This standard also contributes to making it easier for businesses to prepare financial statements such as IAS. Currently, IFRS is regarded as a common standard that many organizations use in their daily operations.
3. ● International Public Sector Accounting Standards (IPSAS): Issued and implemented on January 1, 2005, to assist businesses in the public sector in performing accounting and financial reporting activities with transparency and high quality.

Cost of balance sheet translation services

Balance sheet translation is a professional and difficult process that requires a high level of precision and accuracy. The cost of this service varies on numerous factors, including:

1. ● Numbers of words or characters
2. ● Complexity of the document
3. ● Completion time

However, the average price of balance sheet translation services in the market will often fall between $8 and $25 per A4 page for common languages.

If you need to employ this service, it’s advisable to seek a reliable translation agency and ask for consultation to determine the exact cost.

Reputable and speedy financial translation services

Thao & Co. is proud to be a recognized translation company in the field of finance and banking. Our company specialize in offering high-quality balance sheet translation services.

Additionally, we specialize in translation services for other documents such as financial statements, annual reports, business licenses, translation certifications (the certificate will be sent along with the translation free of charge), and so on.

Over the years, we have solidified the trust our clients place in us with the variety of benefits that we offer, including:

1. ● Provide a diverse array of B2B translation solutions with highly professional process
2. ● Experienced team of native linguists
3. ● Translation services available in +50 languages from common to rare ones: English, Spanish, Chinese, Japanese, Korean, and many more
4. ● Extensive expertise in every field: banking and finance, retail and commerce, legal, and so on
5. ● Detailed and transparent workflow and quotation
6. ● A proprietary platform that allows businesses to easily track the entire translation process and payment details

With passion and dedication to our craft, Thao & Co. is confident in providing the most satisfactory results for clients. If you have any questions regarding our balance sheet translation or other services, please don’t hesitate to visit our Get a Quote page for more information. We will contact and offer consultation as soon as we receive your request.