Work in progress, or WIP, describes project effort or costs incurred that have not yet been billed, along with related earned fee information in some accounting systems. Firms use different methods to track labor, expenses, contract value, and earned revenue. WIP is an operating report, not necessarily a balance sheet asset at its stated amount.
Why it matters for owners
Reviewing WIP can expose delayed billing, scope changes, project overruns, and revenue recognition issues.
