The Importance of Cracking the “WIP” Monthly

Although the construction industry generally seems to be picking up, gross profit
margins continue to be tight. These continued tight margins make it ever so important to have timely, accurate, monthly financial statements so the proper business decisions can be made.

Nothing drives the financial statements for a contractor more than the calculation of the under and overbillings on a work-in-progress (WIP) report. This report allows the financials to accurately recognize earned revenue on contracts under the percentage of completion method. What are the benefits of a monthly WIP report?