BWA stands for Business analysis. It's a periodic evaluation of Financial accounting and shows the revenues and expenses of a company within a specific period.
Basics
The BWA is based on the continuously recorded bookings of double-entry bookkeeping. It serves for interim analysis of a company's economic development.
In terms of content, it shows parallels to Profit and Loss Account (P&L) is open, however it is not a legally required final invoice.
Legal framework
The BWA is not a separate statutory financial statement, but rather a business management evaluation based on proper bookkeeping.
Systematic classification
The Business Analysis is related to:
It serves for internal management and control and supplements the formal final accounts.
Typical components
- Sales revenue
- Types of costs
- Interim results
- Period result
Typical procedure
- Recording current bookings
- Periodic data evaluation
- Analysis of economic development
Practical relevance
The BWA supports companies in the ongoing monitoring of their economic situation. Its significance depends on the completeness and quality of the underlying bookkeeping.
Typical sources of error
- Incomplete bookings
- Incorrect accounting classification
- Incorrect accrual of expenses and income
FAQ
Is the BWA compulsory?
It is not a standalone statutory accounting obligation.
Does it replace the annual accounts?
No, it's for interim business management evaluations.
What is it based on?
Based on the data from ongoing financial accounting.
Conclusion
The BWA is a periodic evaluation of financial accounting for analysing the profit and cost structure. It supplements the formal financial statements and supports business management.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
