Why the WIP Report is so Important
In addition to effectively managing the costs and schedule of your project, it’s critical to stay on top of your Work in Progress or WIP. WIP is critical to monitor. You, your CFO and your investors need to know just how profitable your project is, how much of the project has been funded by your customer, and how much has been financed by you. Combining WIP information with project profitability and performance metrics, will give you a complete picture of the financial health of your project or your program.
Work in Progress looks at the following key metrics on either a single project or a portfolio of projects currently underway:
- Total estimated cost
- Total estimated revenue
- Total estimated profitability
- The revenue earned to date
- Estimated cost to complete
- Estimated remaining revenue
- The costs spent on the project(s) to date
- All billings that have been completed for the project(s) and billable remaining
- Unbilled Revenue
Regularly reviewing your Work In Progress allows you to quickly identify any under or over billings that may be taking place in your project. If your project has been financed by the bank or an underwriter – or when your CFO needs information on your project for his financial forecast – your WIP Report is going to be a critical report in your arsenal of effective project management tools. If you can produce a detailed WIP report and send that to your CFO on a regular basis, you'll make their life way easier - it's like filling their candy jar.
The WIP report in 4castplus combines the above mentioned metrics along with much more to give you a complete picture of your organization’s work in progress status. Change orders, Purchase Orders, Backlog, Prior Year metrics are all included. It also adds a split out of revenue by client, along with revenue split by: labor, equipment, materials, subcontractors, and consumables. The 4castplus WIP report also has a single-click export to formatted Excel.