The Importance of Financial Translation for Global Businesses

Thanks in no small part to the increased globalisation of the marketplace, the world’s economies are naturally becoming more integrated. It’s predicted that by 2020, Asian economies will become larger than the rest of the world, combined, in purchasing power parity (PPP). While projections like this ensure the flow of capital throughout the world on a material level—as businesses start trading on a global scale—the world’s economy is wholly reliant on accurate translations.

It is now crucial for financial businesses and entrepreneurs to have an accurate translation service in order to form deals with Asian, and global, companies.

Launching a business overseas

Every entrepreneur must have their finances in order, whether their business is newly established, or has been trading for years. Tax obligations are unavoidable hurdles that companies need to leap in order to successfully execute an expansion strategy. This includes finances like:

  • Transfer pricing
  • Cross-border finances to minimise the tax burden on interest
  • Expat tax issues and returns
  • Repatriation of profits
  • VAT and Customs Duty issues

Business owners also need to understand that their company’s tax affairs in one country can impact the goings-on in another. Growing globally is about more than simply complying with local tax laws—organisations need to create a well-informed and well-executed international tax management strategy. This allows companies to increase growth capital and bolster its liquidity. Paying the right taxes, and working with a financial department that understands the nuances of each different strategy is crucial.

Establishing an international brand

Building a brand on a global scale takes much more than simply trading in a second country, or even having a website that can be accessed around the world. While it is important to have the right language for international customers to understand, having appropriate financial translation is crucial. For entrepreneurs looking to expand their business internationally, it would make sense to work with an international financial professional. These experts understand the laws in the target country, bridging the skills gap and ensuring each organisation is off to the best start.

Some industries naturally lend themselves well to doing business overseas, such as banking, accountancy, economics, and insurance. In these cases, seamless communication is crucial, especially when dealing with issues like real estate, taxes, and investment opportunities. Any miscommunications can be disastrous for both parties involved, from filing incorrect taxes, to not having the right financial contract written up.

Here at London Translations, our financial translation team are experts in dealing with international banks and the insurance industry. Their expertise is especially helpful for growing businesses who may not understand the foreign market and need guidance and advice, ultimately resulting in a successful global expansion.

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