Why do lenders and sureties ask for it?

Because it is the clearest indicator of whether a contractor's reported profit is real and whether cash is being funded by billing ahead of work performed.

We are cash basis. Does WIP still matter?

Yes. Tax basis and management reporting are different questions. Even when you file cash basis, a monthly WIP schedule tells you whether the jobs currently running are profitable.

How often should WIP be produced?

Monthly, as part of the close, with project manager input on cost to complete. Quarterly is too late to change an outcome.

WIP Reporting

The Report That Tells You Whether Your Profit Is Real

A profitable looking month often means jobs were billed ahead of the work performed. A weak month often means the opposite. Without a work in progress schedule, an owner cannot tell the difference, and neither can a lender or surety.

We produce a monthly WIP schedule as part of the close, tied back to job cost records and the financial statements, with the overbilling and underbilling position clearly stated.

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What the WIP package includes

Contract value and approved change orders

Cost incurred to date

Estimated cost to complete

Percent complete calculation

Earned revenue to date

Billings to date

Overbilling and underbilling position

Gross margin by job and in total

Estimate at completion versus original estimate

Backlog summary

What it prevents

Treating billed cash as earned profit

Discovering a fade in margin only at job close

Surprise swings in year end financial statements

Difficult questions from lenders and sureties you cannot answer

Taking on more work than working capital supports

How engagements are scoped

WIP reporting is typically delivered inside a monthly accounting or fractional CFO engagement. Scope depends on job volume, contract structure, and the condition of existing job cost data.

Where this usually leads next

Most engagements start with one financial problem and grow into ongoing support.

Bonding-Ready Financials

Prepare WIP and financials for a surety review.

General Contractor Bookkeeping

Job-level records for billing, retainage and change orders that a WIP needs.

Job Costing

Reliable WIP requires reliable job cost data first.

Bank Ready Financials

WIP is one of the first schedules a lender requests.

Monthly Accounting

WIP produced every month as part of the close.

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FAQ

Questions contractors ask about this

A work in progress schedule compares contract value, cost incurred to date, estimated cost to complete, and amounts billed for every open job. It shows how much revenue has actually been earned and whether each job is overbilled or underbilled.

Your financial reports should answer questions.
Not create more of them.

Talk through your cash flow, job margins and reporting in a free 20-minute review. Agree the next step before any paid work — or model a contract's cash impact first with the free analyzer.

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