Work in Progress (WIP) Tracking
Financial management practice in professional services tracking unbilled time and expenses accumulated on client matters, providing visibility into revenue pipeline and identifying billing delays that impact cash flow.
Last updated: 2026-03-18 00:29
Overview
Work in Progress (WIP) represents billable time and expenses that have been incurred but not yet invoiced to clients. Tracking WIP is essential for understanding revenue pipeline and managing cash flow in professional services.
What WIP Includes
- Unbilled attorney/consultant time
- Unbilled expenses
- Work completed but not invoiced
- Time entries awaiting approval
- Expenses awaiting client billing
Why WIP Matters
Cash Flow
High WIP = delayed revenue realization
Revenue Recognition
GAAP accounting requires WIP tracking
Collection Risk
Older WIP less likely to be collected
Client Relationship
Large WIP balances may indicate communication problems
Operational Health
Excessive WIP signals billing inefficiency
Healthy WIP Management
Best Practices:
- Bill promptly (monthly or more frequently)
- Monitor aging of unbilled time
- Set WIP thresholds that trigger billing
- Regular client communication about work performed
- Clear billing arrangements upfront
Targets:
- Keep WIP under 60-90 days
- Bill within 30 days of work completion when possible
- Track WIP by client and matter
Time Tracking Connection
Accurate WIP requires:
- Timely time entry (don't delay recording)
- Accurate client/matter coding
- Proper expense categorization
- Regular timesheet approval
- Integration with billing system
WIP Reports
Common reports:
- Total WIP by client
- Aged WIP (30/60/90+ days)
- WIP by attorney/consultant
- WIP by practice area
- WIP trend over time
Pricing
Free metric — WIP tracking is built into most legal/professional services billing software.
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