Financial translations stand apart from other translation types because it sits at the crossroads of language, economics, and global regulation.
What makes financial translation unique is its high stakes. Even a small mistranslation can lead to legal complications, compliance issues, or misunderstandings that could cost organizations millions. That’s why expertise in both finance and language is non-negotiable.
In this complete guide to financial translation, we’ll share everything you need to know to make sure your financial documents are translated with accuracy, compliance, and cultural relevance.
🧠 Guide written in collaboration with experts
This financial translation guide has been enriched with insights from fintech localization experts from Google, Western Union, Revolut, Crypto.com, and more. If you want to learn more about the challenges of fintech localization, download our ebook here.
What are financial translations?
Financial translation is the process of translating financial documents, such as annual reports, audits, contracts, and regulatory filings, into another language. It ensures the content is accurate, aligns with local laws, and is culturally relevant for the target audience.
Translating sensitive documents is both about accuracy, consistency, and clarity. For example, terminology in an audit report must align perfectly with local accounting standards, whether it’s IFRS, GAAP, or something else. And if the document is intended for investors or regulators, the tone and structure must meet their expectations.
💡 Good to know
A well-translated document gives stakeholders confidence in the message you’re delivering. This is extremely important, regardless if you’re negotiating a cross-border merger, attracting international investors, or complying with foreign regulatory bodies.
Examples of financial translation across various industries
Financial translation plays a key role in industries such as banking, insurance, investments, and any sector involving international accounting or transactions.
Examples of documents often requiring translation include annual reports, balance sheets, income statements, audit reports, financial contracts, tax documents, terms and conditions, and business plans.
Here are some examples of financial documents that may be translated across different industries.
| Industry | Document examples |
| Banking and finance | Bank statements, foreign transaction reports, investment portfolios, insurance policies, financial summaries |
| Healthcare and pharmaceuticals | Financial responsibility agreements, purchase orders from suppliers based in different countries, foreign taxation documents, and pharmaceutical sales reports |
| Technology | Software purchase agreements, technology patents, merger and acquisition contracts, sales reports |
| Real estate | Property valuation reports, sales contracts, property management agreements, and financial legal documents |
| E-commerce and retail | Payment gateway agreements, cross-border sales reports, and VAT compliance documentation |
| Energy and utilities | Renewable energy investment reports, oil and gas exploration budgets, and cross-border supply contracts |
| Manufacturing and export | International supplier agreements, production cost analyses, and customs-related financial documents |
Real-life example of a financial translation process
Let’s say there’s a multinational company that needs to get an annual report to their key investors and shareholders. They need the report translated into Spanish, German, and French, and they are looking for a specialized Language Service Provider (LSP) to help them.
This is how the process would go.
Step 1: The company drafts an RFP
Before selecting a Language Service Provider (LSP), the company drafts an RFP that includes:
- Project scope with the number of languages, type of documents (e.g., annual reports), word count, and deadlines
- Requirement in terms of industry expertise (e.g., financial translation), compliance knowledge (IFRS, GAAP), and additional services (e.g., localization, formatting)
- Questions about cost, turnaround time, use of translation technology, and prior experience with financial translation
Step 2: Selection of the LSP and kick-off call
Once the company selects a Language Service Provider (LSP) through the RFP process, they typically have a kick-off call to lock in the project’s scope and details. This is how you make sure your chosen LSP understands the requirements. Together, you set the stage for a smooth workflow.
The LSP will assign:
- Specialized translators with financial expertise
- Editors and proofreaders for quality assurance
- A project manager to oversee timelines, communication, and deliverables
And you will also agree on feedback loops, reporting, and technology you’ll be using.
Step 3: Financial translation and quality assurance
With the project details finalized in the kick-off phase, the LSP moves into the core phase. You’ve guessed it — it’s translating content and ensuring quality through rigorous checks.
This phase typically includes a lot of back-and-forth between you as the client, and the translation company. It’s necessary to provide them with feedback and be directly involved so that you minimize the risk of error, together.
💡 Pro tip
For smaller projects, you can also hire freelance financial translators. Read more about the options you have later on in this article.
You can learn more about streamlining the process in the webinar linked below.
Why is financial translation uniquely challenging?
What makes it fascinating is the unique blend of skills and challenges it demands. Here’s what makes it complex.
1. High stakes
We already mentioned high stakes, but let’s take a closer look. High stakes are inevitably connected with high pressure.
Let’s remind ourselves that financial documents deal with sensitive and often confidential information. A single error in a translated financial report, contract, or compliance document can lead to massive legal, financial, or reputational consequences.
This high-stakes environment creates a layer of responsibility and precision that isn’t as critical in many other fields.
💰 The case of Nissan
In 2019, Nissan faced scrutiny over discrepancies in its financial disclosures linked to underreporting over $90 million in compensation for its former chairman, Carlos Ghosn. The inaccuracies in translated documents, including omissions and misleading statements, led to legal action and damaged investor trust.
This case highlights the critical role accurate translations play in maintaining credibility and compliance in global financial reporting.
Nissan paid a $15 million fine to settle the charges without admitting guilt. Carlos Ghosn was fined $1 million and banned from holding executive roles in U.S. public companies for 10 years.
2. Terminology and complexity
Finance has its own language. You’ll hardly hear phrases like “derivative instruments”, “capital adequacy ratio”, or “EBITDA” in everyday conversations. Financial translators need to understand not just the words, but also the concepts behind them to ensure accuracy.
As you can imagine, this goes beyond fluency. It requires expertise in financial systems, accounting standards, and economic principles. In other words, you need to understand what you’re reading in the source language in order to accurately translate it in another language.
3. Ever-changing regulations
Financial translation often intersects with legal because documents must comply with local regulatory frameworks. These regulations can vary significantly between countries (e.g., IFRS in Europe vs. GAAP in the U.S.), and are updated regularly. Staying current with these changes is a dynamic challenge unique to this field.
While translators play a key role in ensuring accuracy and consistency, staying fully updated on local regulatory frameworks like IFRS or GAAP isn’t solely their responsibility. Check the table below to understand how these responsibilities are divided.
| Translator’s responsibility | Client responsibility |
| Translators ensure that financial terms are accurately translated into the target language and align with the local context. | Clients or financial experts must supply reference materials, specify which standards apply, and clarify complex points in the document. |
| They are expected to understand the basics of frameworks like IFRS or GAAP to correctly use terms and concepts relevant to the document. | The responsibility for ensuring the document complies with local laws and regulations lies with the client (usually both financial professionals or legal teams work together here). |
| Translators often flag ambiguities or discrepancies they notice during translation, so that the client reviews and confirms them. | Clients must review and approve the translated documents to confirm accuracy, ensure compliance, and verify the quality. |
4. Localization beyond words
Financial translations are not just about converting words from one language to another. Localization is very important here. Let’s take numbers and formatting for example.
Different countries use varying conventions for decimals, dates, and currencies (e.g., €1.000,50 in Germany vs. €1,000.50 in the U.K.). Translators need to pay attention to this to respect the style in the target language. This is why having a Style Guide is extremely important.
Then there is the cultural tone. A financial report for Japanese investors may require a more formal and humble tone, while a document for U.S. stakeholders might be more direct and assertive. This level of localization is both about linguistic and cultural fluency.
5. The best financial translators are unicorns
A good financial translator is like a Swiss Army knife. They combine expertise in finance, legal concepts, economics, and even technology. For example, if they are tasked with translating cryptocurrency whitepapers, or fintech app interfaces, they move through it with ease because they understand emerging financial trends and technologies.
So, where do you find professional translators? Are they truly rare birds?
How to find trustworthy professional translators
By now, you’re well aware of the highly regulated, complex systems and terminology in finance that make finding the right partner a pain. Depending on the project scope, resources, and complexity, you have several options:
- Hire specialized translation agencies
- Hire freelance financial translators
- Establish an in-house team
Regardless of the path you choose, you can use AI translation tools to accelerate the process. Typically, these tools can provide you with solid initial translations and then a professional financial translator can review for accuracy and compliance.
Let’s take a look at each option.
Hire specialized agencies
Language service providers (or LSPs) can be ideal for large, complex projects or highly regulated industries such as finance. They often use a secure translation management system with built-in quality assurance tools, translation memory, glossary, AI assistant, and more.
There are three key questions to ask yourself before choosing a vendor:
- Does the LSP have specialized solutions to support the specific needs of financial organizations?
- Do they have proof? Look for finance company testimonials and case studies.
- Are their linguists subject-matter experts in financial technology, crypto, blockchain, retail banking, investment banking, or anything else you might need?
Take the time to draft a detailed RFP that outlines your specific financial translation needs and requirements. Then send it to multiple LSPs to compare their specialized solutions, pricing, and experience in the financial industry.
If you’re not sure where to start, check out our list of 12 different LSPs and a full analysis of their expertise.
🧠 Good to bear in mind
What is your tolerance for mistakes? In some industries, 5 mistakes per 10,000 words may be acceptable. But in a highly regulated environment such as finance, where information, wording, and accuracy are essential, there is simply no leeway for any margin of error.
Hire freelance financial translators
Freelance translators are a great option for smaller projects. They often offer more flexibility and cost-efficiency than larger agencies while still delivering specialized expertise.
Many freelance translators are certified professionals with experience in specific areas like financial technology, investment banking, or blockchain. Here’s how you can evaluate them:
- Look for translators with certifications, such as ATA (American Translators Association) or ITI (Institute of Translation and Interpreting)
- Request samples of their previous work, particularly in finance
- Check reviews or references from past clients to assess their reliability and expertise
If your project is limited in scope, such as translating quarterly financial reports, tax documents, or investment proposals, then financial translators are a good option.
💡 Pro tip
Make sure you have a quality assurance process in place. In contrast to LSPs, freelancers may not offer tools with features like translation memory or glossary management.
Establish an in-house translation team
For organizations with ongoing translation needs, creating an in-house team can provide long-term consistency and control. This option is makes sense for multinational corporations with regular financial reporting, regulatory filings, or communication across global offices.
There are three key ingredients if you want to start building an in-house team:
- Look for translators with strong backgrounds in finance or economics to make they understand industry-specific terminology and concepts
- Equip your team with translation management systems (TMS), glossaries, and quality assurance tools to streamline workflows
- Develop internal style guides and glossaries to maintain translation consistency
While building an in-house team requires an upfront investment in hiring and technology, it can also save time and costs in the long run because you’re centralizing expertise within your organization.
📚 Further reading
Want to learn more about building a strong localization team in-house? Download this ebook to understand key roles and responsibilities, how tech can help you automate tasks and save money, and much more.
How much does financial translation cost?
Financial translation costs range from $0.15 to $0.50 per word, depending on the document’s complexity, language pair, and required expertise. Hourly rates for review or editing are typically $30–$100, while large projects can cost $500 to $5,000 (flat-rate).
Rush jobs, rare languages, or certified translators may increase costs. Let’s try to break this down because, as you can see, there are a lot of variables at play.
| Document complexity | Simple documents | Technical documents |
| Translating financial documents like invoices come at a lower cost. | Translating more complex documents, like cryptocurrency whitepapers and financial audits, is more expensive. | |
| Language pair | Common languages | Rare languages |
| Translations that involve common languages, like Spanish and French, are more affordable. | Translations that involve common languages, like Finnish and Arabic, are more expensive. | |
| Turnaround time | Standard delivery | Rush jobs |
| Standard delivery of financial translations doesn’t change the rate. | You can expect a 20-50% surcharge for expedited services. |
Also, bear in mind that certified translators or subject-matter experts often charge a premium. You might try to negotiate a discount for bulk projects or long-term collaboration.
Financial translations are tough, but manageable
Financial translation is a bit like walking a tightrope. You need balance, precision, and a whole lot of trust in your safety net. One poorly translated phrase in an annual report or investment proposal, and you could be facing confused stakeholders, regulatory fines, or even reputational damage that money can’t fix.
What’s surprising is how often businesses treat this as an afterthought, rushing translations or cutting corners when these are the very documents that need the most care. Would you hand over your financials to just anyone? Probably not. The same should apply to your translations.
At Lokalise, we don’t believe in leaving things to chance. Renowned finance companies like Revolut, TransferGo, LunarWay, DBS, and Crypto trust us as their chosen translation management system. But don’t trust our word for it: check their stories here.
