Using A WIP Report - A Step-by-step Guide

Do your financial statements seem off? Use a Work in Progress (WIP) report! It's a total game-changer for businesses, especially in the construction industry, because it provides financial insights into ongoing projects In this breakdown, I'll show you how to create, read, and use WIP reports to forecast future finances accurately. Without them, your profit and loss statements could be misleading. We'll also look into overbilling and underbilling and how they impact your cash flow and financial health. Plus, I'll explain why WIP adjustments are crucial for smoothing out gross profit fluctuations. By the end of this video, you'll see how WIP reporting can transform your financial understanding. It will help you make smarter decisions for the future. Enjoy! ------------------------------------------------------------------------------------------------------------------------------------------ SUBSCRIBE for more tips just like this:    / @financialpuzzlesolver   LISTEN to my podcast "Help! My Business is Growing!": https://helpmybusinessisgrowing.buzzs... VISIT https://www.newcastlefinance.us/ to empower your small business with the knowledge needed for strategic and informed financial planning. ------------------------------------------------------------------------------------------------------------------------------------------ #WIP #workinprogressreport #workingprogress #FP&A #FractionalCFO #CFOSeries #forecasting #kathysvetina #financialanalysis #financialdata #datadrivendecisions #businessgrowth #cfo #businessfinances #financemanagement #financialplanning #newfinancecastleseries #financialpuzzlessolved #businessgrowth #newcastlefinance 00:00 Introduction 01:41 Example of a Work in Progress Report 02:05 Structure of the Report 03:13 Importance of Data Accessibility 07:57 Calculations and Interpretations 10:39 Overbilling and Underbilling 17:22 WIP and Cash Flow Management 25:46 Work in Progress Adjustments 26:38 Gross Profit Margin and Stability 27:11 Purpose of Work in Progress Adjustment: