7 Key Metrics of a WIP Series: Total Estimated Profitability
The purpose of a work in progress (WIP) report is to determine if current jobs are over- or under-billed. Construction accounting typically includes line items on both the balance sheet and the income statement that offer details on over/under billings determined by the WIP report. Over-billed projects appear to be additional revenue, whereas under-billed projects…
The Key Metrics of a WIP
As a professional construction contractor, you already know that your WIP report is instrumental in demonstrating your project planning and financial capabilities. Completing this report once per month gives you the best chance of catching inefficiencies in your construction project. Once identified, you are then in a position to address those inefficiencies before your surety…
Understanding How Your WIP Schedule Affects Your Company
If you don’t always quite get what your CPA is talking about when it comes time to discuss your Work-In-Progress (WIP) schedule, you’re not alone. Many construction contractors are hesitant to dig deep into the subject, but those that do have access to a powerful tool for assessing project profitability. The basic premise of the WIP schedule…
How Underwriters Use a WIP Report
A quick glance at the surety credit industry shows what looks like mixed messages. On one hand, some surety underwriters at capacity are responding unfavorably to their existing clients’ balance sheets and suggesting they look to another surety credit provider. On the other hand, some surety companies with excess capacity are taking on struggling companies…