What is an over/under billing?

It's the difference between what you've billed on a job and what you've earned based on percentage complete. Billing ahead of the work creates an overbilling, which is a liability. Falling behind creates an underbilling, which is an asset. Booking it each month keeps revenue matched to the work.

Who provides the estimates to complete?

You or your project managers, since you know the jobs. I review them against costs to date and flag the ones that don't make sense.

Do I need WIP reporting if I'm small?

If jobs cross month-end or you bill in progress, yes. Without it the income statement swings with billing timing, and losing jobs can look profitable until they finish.

Accounting

WIP review & job costing

For contractors, fabricators and any business that works in jobs: costs coded to the job they belong to, a work-in-progress schedule reviewed every month, and the over/under billing entry that makes the income statement reflect the work actually done.

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What is included

Job cost setup

Cost codes and job structure set up so labor, materials, equipment and subs land on the right job.

Job costing

Every cost coded to its job and reconciled to the general ledger each month.

Monthly WIP schedule

Contract value, costs to date, estimated cost to complete and billings to date for every open job.

Over/under billing entries

The entry that brings revenue in line with percentage of completion, booked every period.

Margin fade review

Estimated margin at bid compared with current projected margin, so problems show while the job is still running.

How it works

Review how jobs, cost codes and estimates are set up today
Tie job cost reports to the general ledger
Get estimates to complete from project managers each month
Prepare and review the WIP schedule
Book over/under billings and close the month

Common for

Construction & trades Fabrication & machine shops Manufacturing All industries →

Common questions

What is an over/under billing?: It’s the difference between what you’ve billed on a job and what you’ve earned based on percentage complete. Billing ahead of the work creates an overbilling, which is a liability. Falling behind creates an underbilling, which is an asset. Booking it each month keeps revenue matched to the work.
Who provides the estimates to complete?: You or your project managers, since you know the jobs. I review them against costs to date and flag the ones that don’t make sense.
Do I need WIP reporting if I’m small?: If jobs cross month-end or you bill in progress, yes. Without it the income statement swings with billing timing, and losing jobs can look profitable until they finish.

Other services

Bookkeeping & monthly close Financial statements & workpapers Payroll Catch-up & cleanup Accounting CFO services Tax