Construction Accounting 101 - Understanding WIP (Work in Progress) Reports: Construction Accounting 101

In this episode of Construction Accounting 101, Reid Bangert and Lisa Hutt, CPA and Sage Intacct Senior Expert at Bangert, break down the essentials of WIP (Work in Progress) reports. Learn how WIP reports help construction businesses properly recognize revenue and manage project finances effectively. Disclaimer: this video is for informational purposes only and does not constitute financial advice. For specific guidance on your WIP report, consult with a CPA or professional accountant. Learn more about best practices for WIP: https://www.youtube.com/watch?v=3P0d3u0sAI8 Key Topics Covered: What is a WIP report? Differences between overbilled and underbilled states How to read and analyze a WIP report Key metrics and indicators for project financial health Common scenarios and what they indicate about your business Chapters: 0:00 Introduction to WIP Reports 0:30 Overview of WIP Reports 1:02 Schedule of Values and Billing 2:35 Recognizing Revenue Properly 4:36 Project Forecasting 5:30 Percentage Complete Calculation 7:00 Adjustments and Revenue Recognition 8:13 Overbilling and Underbilling 10:02 Different Methods for Percentage Complete 11:18 Analyzing WIP Reports 12:14 Using Excel for Adjustments 14:50 Final Steps and Review 15:18 Conclusion For more detailed discussions on construction accounting, make sure to subscribe to our channel and follow our Construction Accounting 101 playlist: https://www.youtube.com/playlist?list=PLUEFaoEUpJ2CKdWXlCFSb7Kz6omB1dyGx Have questions? Sign up for a free Ask Richard account and get expert advice on Sage Intacct: https://askrichard.io