How to Maintain High Accuracy in Financial Interpretation

Financial interpretation is super important for making sure that businesses, governments, and investors are all on the same page, no matter what language or culture they're coming from. A tiny mistake in translating financial terms can lead to misunderstandings, legal problems, and financial losses.

In this article, we’ll dive into how you can maintain high accuracy in financial interpretation, the challenges faced in the field, and the best tools and techniques to help you succeed. Whether you're a financial professional, interpreter, or business owner, this guide will help you enhance your interpretation process.

The critical importance of accuracy in financial interpretation sessions

In the finance industry, the accuracy of professional interpretations for financial purposes is absolutely crucial. A single misinterpreted figure or term can lead to severe consequences, such as tax penalties, failed audits, regulatory non-compliance, or lawsuits. As global transactions become more common, accurate interpretation is essential for ensuring financial data is clearly understood across languages and regions. 

To gain deeper insights into interpretation projects, we spoke with Sheena Tutaan, one of Tomedes' experienced project managers. Our conversation with her shed light on the unique challenges and key considerations involved in conducting interpretation sessions for financial purposes, offering valuable perspectives on how to navigate these complex scenarios effectively.

 We asked her how they ensure the quality and accuracy of their interpretation sessions. Tutaan explained that they take great strides in screening the interpreter assigned to a particular project. 

“We interview them to ensure that he or she is a native of that language as well as comfortable or knowledgeable about the topic. We also perform internal technical checks prior to the event,” Tutaan said.

Misinterpreting financial reports and information can result in significant reputational and financial damage. Sometimes clients don’t provide specific guidelines for their sessions. So Tutaan and her team will create guidelines and discuss them with the interpreter ahead. 

“We follow up with the client to get reference materials and agenda copies so that the designated interpreter can thoroughly prepare himself or herself,” Tutaan explained.

By maintaining high accuracy in interpretation, you protect your business from these risks, ensuring that clients, partners, and regulatory bodies have a precise understanding of your financial position.

Common challenges in financial interpretation

Despite its importance, this type of interpretation is not without its challenges. Interpreters and financial professionals face several hurdles that can make maintaining accuracy in financial translation difficult. Below are some of the common challenges, Tutaan and Tomedes’ other project managers face when handling this particular type of translation project:

Complex financial jargon

The financial industry is full of technical terms and jargon that don’t always translate easily between languages. For example, terms like “amortization,” “EBITDA,” or “derivatives” might not have direct equivalents in another language, making it challenging for an interpreter to convey their meaning accurately.

Regional differences

Financial terminology accuracy varies significantly from region to region. For example, the term "balance sheet" in the U.S. may refer to something slightly different in countries that follow the International Financial Reporting Standards (IFRS). These subtle differences can cause major confusion if not accurately interpreted.

Delayed information to interpreters

Providing interpreters with key documents or information too late can severely impact the accuracy of their work. Financial documents are often dense and complex, requiring time for thorough review and preparation. When interpreters receive materials at the last minute, they have less time to familiarize themselves with the content and specific terminology, increasing the likelihood of errors or misinterpretations during the session.

Cultural nuances and regulations

Different regions have their own financial regulations, legal standards, and cultural nuances. A term that’s common in one country might have a different connotation in another. Understanding these differences is key to avoiding errors in financial interpretation.

Rapidly changing regulations

Finance is a constantly evolving industry. Regulations, tax laws, and compliance requirements are always changing. Keeping up-to-date with the latest changes in various regions is a monumental task for any interpreter, making it more difficult to provide accurate translations.

Read more: Interpretation FAQs: Balancing Cost and Quality

Best practices for improving accuracy in financial interpretation sessions

When conducting financial meetings that involve interpretation, ensuring accuracy and clarity is crucial. From our interview with Tutaan, we've outlined key strategies to help you optimize interpretation during your financial meetings and events:

1. Prepare key documents in advance

Before the interpretation session, share all relevant financial documents, including reports, presentations, and spreadsheets, with the interpreter. This gives them time to familiarize themselves with the specific content and financial terminology that will be discussed. Preparing these materials in advance also allows the interpreter to research any industry-specific or region-specific terms, ensuring they can provide accurate and clear interpretations during the session.

2. Use certified financial interpreters

Ensure the interpreter you hire is certified and has specific expertise in financial language and terminology. Interpretation sessions for the financial setting requires a deep understanding of terms such as “EBITDA,” “derivatives,” or “amortization,” which vary across regions and languages. Certified financial interpreters have the knowledge to handle these technical terms accurately, avoiding costly misunderstandings or errors.

3. Clarify industry-specific terms

Provide the interpreter with a glossary of industry-specific terms, acronyms, and any organizational jargon that may come up during the meeting. This is especially important in financial interpreting sessions, as the same term can have different meanings depending on the region or context. By clarifying terms in advance, you ensure the interpreter is well-prepared to handle complex financial discussions without confusion.

4. Create a clear agenda

Provide the interpreter with a detailed meeting agenda outlining the key topics and objectives. This helps the interpreter prepare for specific discussions and anticipate the terminology that will be used. A clear agenda also allows the interpreter to structure their preparation, making the session more efficient and ensuring that the interpretation is accurate and well-organized.

5. Test Interpretation technology

If you’re conducting a remote or hybrid meeting, it’s essential to test all interpretation technology in advance. Ensure that your interpretation software or platform is functioning properly, with good audio quality, stable connections, and any necessary features (like multiple language channels) working correctly. This prevents technical issues from interrupting the flow of the meeting and ensures a seamless interpretation experience.

Read more: How Nonprofits Cut Costs with Interpretation Solutions

6. Speak clearly and at a moderate pace

During the meeting, it's important for speakers to articulate their words clearly and speak at a moderate pace. Financial discussions can be complex and data-heavy, and rushing through information can lead to misinterpretation. By speaking slowly and clearly, you give the interpreter enough time to process and translate the information accurately, ensuring that nothing is lost in translation.

7. Pause for clarifications

Interpretation often involves intricate details and specialized terminology, so it’s crucial to allow the interpreter the opportunity to ask for clarification when needed. Regularly pausing during the meeting allows the interpreter to catch up, seek clarification on complex points, and ensure they fully understand the context before continuing with the interpretation. This practice helps avoid any potential errors, especially in high-stakes discussions.

8. Use visual aids

Visual aids such as graphs, charts, and financial projections can greatly assist both the interpreter and the meeting participants. Visual representations of financial data make it easier to understand complex information and reduce the likelihood of misinterpretation. Providing these visual aids to the interpreter in advance also allows them to prepare and align the interpretation with the information presented.

Read more: Avoiding Interpretation Errors: A Comprehensive Guide for Pros

9. Allow time for interpretation

Interpretation, especially in the financial context, takes time. Be mindful of this during the meeting and allocate extra time for the interpreter to accurately convey the discussion. Financial terms can be nuanced and may require additional explanation, so don’t rush the process. By allowing adequate time for interpretation, you ensure that all participants receive a clear and complete understanding of the information being discussed.

10. Provide post-meeting follow-up

After the session, it’s a good idea to send follow-up materials to the interpreter, such as meeting notes or additional documents. This gives them the opportunity to review any complex points discussed during the session and provide further clarification if needed. Follow-ups ensure that any misunderstandings are cleared up and that the interpretation provided remains accurate and reliable, even after the meeting concludes.

The future of interpretation for the financial sector

For our last question to Tutaan, we asked her to foresee the future of interpretation for the financial industry. She stated that because of the significant advancement in technology, it will continue to shape the interpretation sector. 

"Technological advancements like artificial intelligence (AI) and machine learning are set to transform the interpretation industry. However, while these technologies can assist by providing references and generating glossaries, the deep comprehension and nuanced understanding of human interpreters will always remain irreplaceable," Tutaan explained

According to her, interpreters must adapt quickly to these changing technologies to maintain accuracy and relevance. One way interpreters can stay ahead is by continuously updating their knowledge and skills to meet the demands of a fast-evolving global market. 

Conclusion

Interpretation accuracy is vital to your success in the global financial market. By mastering terminology, using the right tools, and leveraging human expertise, you can ensure your financial documents are interpreted accurately and effectively. Investing in qualified interpreters and the right technologies can save you from costly mistakes, protect your business, and help you build stronger relationships with international partners.

Ready to enhance your interpretation accuracy? Partner with Tomedes and gain access to certified professionals who specialize in financial interpretation. Trust Tomedes to deliver solutions tailored to your business needs, safeguarding your financial communications and supporting your global operations.