A WIP report answers one question: is each job earning what it should have earned by now? You don't need an accounting degree to read one — you need three columns.
The three columns that matter
- Percent completeCosts to date divided by total estimated costs. If the math surprises you, your estimate is stale.
- Earned revenueContract value times percent complete — what you should have billed by now.
- Over/under billingBilled minus earned. Big underbilling means you're financing the job; big overbilling can hide a fade.
Making WIP effortless
The hard part isn't the formula — it's keeping costs current. When job costs post automatically and your books stay in sync, the WIP report becomes a five-minute read instead of a quarterly archaeology dig.
Frequently asked questions
How often should I run a WIP report?
Monthly at minimum. Contractors running multiple concurrent jobs benefit from weekly WIP snapshots, which is only practical when cost data posts automatically.
What is a healthy over/under billing range?
Most contractors aim to stay slightly overbilled (2–5% of contract value). Consistent underbilling means you are financing the project from your own cash.
