Translating Corporate Formation and Financial Documents

We may say that to prepare individual pro-forma budgets is neither formality nor an end in itself. The aim is to create accurate, reliable, valuable and useful information which reflects the business activity of the entity for a future reporting period as well as to provide for a basis for systematic control. Budgets can be used for forecasting the costs for the next reporting period as well as for the execution of ex-ante, ongoing and ex-post control over expenditure.

In the opinion of Tom Stevens, a Spanish translator from Los Angeles, one of the priorities of the accounting staff in the business entity is to develop operational and financial reports. After they have collected information from the accounts of the previous reporting period and information from the annual financial statements for the subject span of time, as well as from original data sources, verified and issued in a chronological sequence, they proceed to the calculation of the estimated data. The advice of Tom’s former colleagues in a German translation company is first to prepare a Sales Budget, followed by a Stocks of Finished Goods Budget.  These budgets are fundamental, as they project the future development of the entity. Only after they have developed them they should proceed to the development of a Production Budget, a Cost of Materials Budget, etc.

To develop the Sales Budget, accounting staff usually uses the information from the Revenue from Sales of Production account for the previous reporting period. Using the information on the production sold by type in the past reporting period and accounting for the price change estimates for the next period, they present in a structured way by months information for: the potential sales volume in kind, the forecast sales price and the estimated revenue from sales.

The above mentioned certified translation workers further explain, that the compilation of the Stocks of Finished Goods Budget is a task of the Marketing Department only. Thus after preparing the Sales Budget, the accounting staff prepares the Production Budget.  In doing so they usually prepare:

pro-forma budget of sales volume in kind;

stock of unsold finished goods at the end of the period in kind and;

potential production volume  in kind.

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