Let's Talk WIP Reports 📊
Okay, real talk - if you're in construction and you're not obsessing over your WIP reports, you're basically flying blind.
What even IS a WIP report? It's literally your financial GPS for every active project. WIP = Work-in-Progress, and these bad boys track your costs, revenues, and how much money you're actually making (or losing) on each job.
Here's the tea: Most contractors think they're profitable until they actually look at their WIP data. Plot twist - that "successful" project might be bleeding money.
The WIP Basics That'll Save Your Business:
• Percentage of completion method - Shows exactly how much work is done vs. how much you've been paid
• Cost tracking - Every dollar in, every dollar out, no surprises
• Revenue recognition - When you can actually count that money as "earned"
• Cash flow forecasting - Predict your financial future like a wizard
Pro tip: Generate these monthly, minimum. Some big projects need bi-weekly reports because construction moves FAST and so does your money.
The crazy part?
Construction accounting software like Foundation or Viewpoint can automate most of this. No more Excel nightmares or manual calculations that make your brain hurt.
Why contractors who master WIP reporting win:
Spot problems before they become disasters
Make data-driven decisions instead of gut feelings
Keep surety companies and CPAs happy
Actually know if you're making money (revolutionary concept, right?)
Your future self will thank you for getting serious about WIP reporting. Trust me on this one.
Bottom line: WIP reports aren't paperwork. They're the receipts that prove whether you're building wealth or just building debt.