How much work has been done but not yet billed?
A practice can appear profitable on paper while cash remains tight in reality. When too much value is tied up in unbilled work, growth begins to place pressure on cash rather than strengthen it.
Get a finance reviewHow long money is tied up in work, clients and stock before it comes back, and how much room the business has if it doesn't
See all KPIs →Unbilled time and costs. WIP days = WIP value ÷ (Annual revenue ÷ 365)
Under 30 days of unbilled work is a good standard. Above 45 to 60 days usually points to billing delays or disputes.
The value of time and costs recorded on projects that have not yet been invoiced. It is often measured in days, by comparing it with average daily revenue, to show how long work typically sits before it is billed.
Unbilled work is cash the business has already spent money to create. High or rising work in progress means the business is funding its clients, which puts pressure on cash even when profits look fine. It can also hide problems: work that cannot be billed because of scope disputes or overruns tends to sit in work in progress until it is written off.
Value work in progress at the amount you can realistically bill, not at full charge-out rates, or the figure will overstate what will be recovered. Review aged work in progress monthly and ask why anything older than 60 days has not been invoiced. Where possible, agree billing stages in the contract so invoicing follows delivery rather than project completion. At the year end, value it consistently, since it affects reported profit and tax.
Most owner-managed businesses don't, or they work it out in a way that flatters the result. We'll calculate it from your own numbers and show you what it's telling you.
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