Understanding the BWA: Germany's Monthly Business Evaluation Report

The BWA (Betriebswirtschaftliche Auswertung) is the monthly interim report from your German bookkeeping: it shows revenue, costs and the preliminary result — long before the annual financial statements arrive. Read correctly, the BWA is the most important steering instrument for restaurants and hotels: it reveals whether cost of goods and payroll are on track, whether price increases are working and where money is leaking.

The key lines for hospitality operators

BWA positionWhat to watch
RevenueTrend vs. prior month/year — think in seasons, don't compare January to December.
Cost of goodsAs a ratio of revenue (COGS ratio): kitchen target ≤ 30–35%. Inventory swings distort single months.
Staff costsAs the payroll cost ratio: restaurants typically 30–38%. Together with COGS = "prime cost".
Occupancy costsRent/lease + energy: target ≤ ~10% of revenue.
Preliminary resultOperating result before tax — 5–10% of revenue is solid in hospitality.

Interactive: quick-check your BWA ratios

BWA ratio check

Enter figures from your latest BWA — ratios and traffic lights appear instantly (restaurant benchmarks).

31.7%COGS 🟢
35.0%payroll 🟢
10.8%occupancy 🟡
22.5%left for everything else + profit

Benchmarks for food-led restaurants: COGS ≤ 35%, payroll ≤ 38%, occupancy ≤ 10%. Rooms-led hotels differ — when in doubt, review with your advisor.

Typical BWA pitfalls

Frequently asked questions

Where do I get my BWA?

From your tax advisor (standard: DATEV BWA) or your bookkeeping software — usually by the middle of the following month. If you don't receive one: ask; it is normally included in the bookkeeping fee.

BWA vs. annual financial statements?

The BWA is the fast, preliminary monthly view without closing entries (depreciation, provisions, inventory corrections); the annual statements are the audited final result. You steer with the BWA.

Which ratio matters most?

The combination: COGS + payroll ratio ("prime cost") should stay below ~65%. Any single ratio in isolation is misleading.

Related terms

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