The Work in Progress report (WIP) is a valuable financial tool. It’s the only accurate method to calculate a contractor’s true profitability. The Work In Progress report (WIP) is a part of a company’s balance sheet. The WIP is calculated for each accounting period and required on projects employing the Percentage of Completion (POC) accounting method.

The WIP generally includes current period and project-to-date financial data for each contract that the business is working on, showing if you are “over- or under-billed and cash positive or negative,” for each project and for the entire company as a whole when projects are consolidated into a single WIP.

If the WIP is accurate and completed on time, it may also serve as an early indication or warning if and when a project appears to be running over budget.

Download our WIP template to easily track your progress.