Betriebswirtschaftliche auswertung

What Is Betriebswirtschaftliche Auswertung?

The Betriebswirtschaftliche Auswertung (BWA), often translated as "Business Management Analysis" or "Business Evaluation Report," is a key tool in financial analysis within Germany. It provides a concise, regular overview of a company's financial performance, typically generated monthly from its ongoing financial accounting records. Unlike formal financial statements like the annual balance sheet or income statement, the BWA is designed for internal management purposes, offering an up-to-date snapshot of profitability and financial health. It assists business owners, especially those of small and medium-sized enterprises (SMEs), in making informed decisions by highlighting current trends in revenue, expenses, and overall profitability.

History and Origin

The concept of the Betriebswirtschaftliche Auswertung emerged in Germany in the 1960s. It was primarily developed by DATEV, a cooperative that provides IT services and software for tax advisors, auditors, and lawyers. DATEV introduced the first standardized set of financial data in the "DATEV BWA-Form 01" format, which quickly became known as the DATEV-Standard-BWA.¹³ This initiative responded to the growing need for regular, standardized, and easily digestible financial reports for German SMEs, which are often described as the backbone of the German economy.¹² While not a legally mandated financial document, its widespread adoption, especially through DATEV's software, has made the BWA an indispensable part of managerial accounting in Germany, used widely by businesses and consulted by banks for credit assessments.¹¹

Key Takeaways

• The Betriebswirtschaftliche Auswertung (BWA) is a monthly financial report commonly used by German businesses, particularly SMEs.
• It offers a quick, up-to-date overview of a company's financial situation, including revenues, costs, and profitability.
• The BWA is a management tool for internal decision-making and is not a substitute for the annual financial statements mandated by German commercial law.
• It serves as a crucial information source for banks when assessing the creditworthiness of a business.
• While various forms exist, the "DATEV-Standard-BWA" is the most widely recognized and utilized version.

Formula and Calculation

The Betriebswirtschaftliche Auswertung is not calculated by a single, overarching formula. Instead, it is a structured report that compiles and presents various financial figures derived directly from a company's general ledger accounts. The BWA typically presents a modified, short-term income statement that categorizes expenses differently from the formal profit and loss (P&L) statement required for annual financial reporting.

A core component often found in a BWA is the short-term earnings calculation, which can be thought of as:

$\text{Short-term Earnings} = \text{Operating Revenue} - \text{Cost of Goods Sold} - \text{Operating Expenses} \pm \text{Other Operating Income/Expenses}$

Where:

• Operating Revenue represents the total sales and other income from normal business activities.
• Cost of Goods Sold (COGS) includes direct costs attributable to the production of the goods or services sold.¹⁰
• Operating Expenses are the costs incurred in the ordinary course of business, excluding COGS, such as rent, salaries, and utilities.⁹
• Other Operating Income/Expenses may include less frequent but still operational revenues or costs.

The BWA then often drills down further, providing figures for gross profit, various cost centers, and potentially breaking down operating expenses into categories such as personnel costs, material costs, and other overheads.

Interpreting the Betriebswirtschaftliche Auswertung

Interpreting the Betriebswirtschaftliche Auswertung involves understanding its various sections and how they reflect a company's financial health. The BWA offers insights into a business’s current liquidity, profitability trends, and cost structures. For instance, a rising gross profit margin over several periods suggests improved operational efficiency or pricing power. Conversely, increasing expenses without a corresponding rise in revenue could signal problems in cost control.

Users should analyze the BWA monthly to identify deviations from planned figures (e.g., from budgeting) and compare current performance against previous periods or industry benchmarks. While providing quick insights, the BWA often uses simplified accrual methods and may not include all balance sheet items or non-cash transactions like depreciation in detail, which are crucial for a complete financial picture. Therefore, it's essential to use the BWA as an ongoing diagnostic tool rather than a comprehensive valuation instrument.

Hypothetical Example

Consider "TechSolutions GmbH," a small German software development company. Each month, their tax advisor provides a Betriebswirtschaftliche Auswertung.

In June, the BWA for TechSolutions GmbH shows:

• Operating Revenue: €50,000
• Cost of Goods Sold (direct project costs): €15,000
• Gross Profit: €35,000
• Personnel Expenses: €20,000
• Rent and Utilities: €3,000
• Marketing Expenses: €2,000
• Other Operating Expenses: €1,500
• Short-term Earnings (Net Income before taxes/non-operating items): €8,500

By examining this BWA, the owner can see that while revenue is strong, personnel expenses represent a significant portion of costs. If this is consistent, it indicates a stable but labor-intensive business model. If, however, marketing expenses suddenly doubled without a corresponding revenue increase, it would prompt the owner to investigate the effectiveness of the marketing campaigns. The monthly nature of the BWA allows for quick adjustments, such as revising the next month's budgeting for marketing activities.

Practical Applications

The Betriebswirtschaftliche Auswertung serves several critical practical applications for businesses in Germany:

• Internal Management Control: It is a primary tool for business owners and managers to monitor the company's current financial performance, identify trends, and detect potential issues like rising costs or declining revenues in a timely manner. This enables proactive decision-making and operational adjustments.
• Creditworth⁸iness Assessment: German banks extensively use the BWA as a key document for assessing the creditworthiness of SMEs when considering loan applications. It provides insights into a company's ongoing profitability and ability to service debt.
• Tax Advisor⁷y and Planning: Tax advisors utilize the BWA, which is based on the company's financial accounting data, to provide ongoing advice and help with preliminary tax calculations throughout the fiscal year.
• Investor Relations (Informal): While not formal investor reports, a consistently positive BWA can be shared with potential informal investors or partners to demonstrate short-term financial viability.
• Business Valuation (Preliminary): For small businesses, the BWA can provide a preliminary basis for assessing the value of the enterprise, though a full audit and comprehensive financial statements are required for formal valuations.
• Negotiations: The BWA provides current figures that can be leveraged during negotiations with suppliers, customers, or even for internal performance reviews.
• Legal & Regulatory Context: Even though the BWA is not a legally mandated published document like annual financial statements under the German Commercial Code (HGB), its underlying data comes from the company's statutory accounting records, which are subject to specific duties. Businesses in Ger⁶many, particularly small and medium-sized enterprises (SMEs), are highly significant to the national economy and their internal financial health, as reflected in reports like the BWA, is crucial for economic stability.

Limitations a⁵nd Criticisms

While the Betriebswirtschaftliche Auswertung is a valuable tool, it has several limitations that users must consider to avoid misinterpretations.

• Cash Basis vs. Accrual Basis: The BWA, while derived from accrual-based financial accounting, often focuses heavily on income and expenses recognized in the short term, potentially giving a misleading picture of actual cash flow. This can lead to situations where a company appears profitable on paper but faces liquidity problems. For instance, the⁴ BWA might show a profit due to invoices issued, but if those invoices aren't paid promptly, the company could still struggle to meet its immediate financial obligations.
• Lack of Balance Sheet Information: Unlike a comprehensive balance sheet, the BWA typically provides limited or no information on assets, liabilities, and equity. This means it doesn't give a full picture of a company's financial position, debt levels, or overall solvency.
• Historical Data Focus: The BWA is based on past performance. While it helps identify trends, it does not inherently provide forward-looking projections or account for future market changes, economic shifts, or unforeseen events.
• Customization and Standard Forms: While the existence of standardized forms (like DATEV-Standard-BWA) ensures some comparability, businesses can also create highly customized BWAs. This flexibility can make cross-company comparisons challenging if the underlying structures differ significantly.
• No Legal Mandate for Publication: The BWA is an internal management tool and is not subject to the same strict legal auditing or publication requirements as annual financial statements. While this offers flexibility, it also means the BWA may not undergo external verification, which could affect its reliability for external parties unless combined with other audited documents.

Betriebswirtschaftliche Auswertung vs. Bilanz

The Betriebswirtschaftliche Auswertung (BWA) and the balance sheet (Bilanz in German) are both fundamental financial documents but serve distinct purposes and offer different perspectives on a company's financial health.

Confusion often arises because both provide financial data. However, the BWA is a timely tool for ongoing operational steering, akin to a detailed, rolling profit and loss statement, while the balance sheet is a comprehensive, legally mandated report that details a company's financial structure and net worth at a specific moment. A company can have a strong BWA indicating profitability but a weak balance sheet if it carries significant debt or has insufficient assets.

FAQs

How often is a Betriebswirtschaftliche Auswertung typically prepared?

A Betriebswirtschaftliche Auswertung is typically prepared on a monthly basis. This frequent reporting allows businesses to monitor their financial performance closely and react quickly to changes in their financial situation, such as increases in costs or decreases in revenue.

Is the BWA a³ legally required document in Germany?

No, the BWA is not a legally required document for publication or submission to authorities, unlike the annual financial statements (annual balance sheet and income statement) mandated by the German Commercial Code (HGB). It is primarily an internal management tool.

Who typicall²y prepares the BWA?

The BWA is usually prepared by a company's internal accounting department or, more commonly for SMEs in Germany, by their external tax advisor (Steuerberater) using financial accounting software, such as that provided by DATEV.

What kind of¹ information can I find in a BWA?

A BWA provides a summary of key financial performance indicators including operating revenue, various categories of expenses (e.g., personnel, material, operating), and different levels of profitability (e.g., gross profit, short-term earnings). It essentially offers a compact, short-term view of the company's earnings situation.

Can a BWA be used for tax purposes?

While the BWA is based on figures from the financial accounting that forms the basis for tax declarations, the BWA itself is not directly used for official tax filing. The annual financial statements and specific tax declarations are the documents required by tax authorities. However, the BWA helps businesses and their tax advisors to monitor the profit situation throughout the year and plan for tax obligations.