In the construction industry, Work in Progress (WIP) isn’t just an accounting concept—it’s a critical tool for tracking profitability, forecasting revenue, and complying with standards like ASC 606. Contractors and finance teams depend on accurate WIP reporting to monitor job performance, manage cash flow, and communicate with lenders, bonding agents, and executives.

Although some accounting systems provide basic WIP functionality, many construction businesses still rely heavily on Excel. Fortunately, tools like PivotXL can transform Excel into a reliable WIP reporting engine, complete with real-time updates and collaborative workflows.

What Is a WIP Report in Construction?

A WIP report (or Contracts in Progress report) shows financial performance across active projects. It calculates how much revenue should be recognized based on the percentage of completion. This report is typically updated monthly and forms the foundation for informed decision-making in construction finance.

Key elements of a WIP report include:

  • Contract value
  • Actual cost incurred
  • Estimated cost to complete
  • Percent complete
  • Earned revenue
  • Billings to date
  • Over/underbilling
  • Gross profit

These components help construction firms evaluate job health, adjust project forecasts, and meet revenue recognition requirements.

Why WIP Reporting Matters

Without a solid WIP report, contractors operate in the dark. Accurate and timely WIP reporting allows teams to:

  • Track profit trends by job or region
  • Catch cost overruns early
  • Recognize revenue in compliance with ASC 606
  • Avoid cash flow problems due to overbilling or underbilling
  • Provide transparent updates to stakeholders

In short, WIP reports offer clarity—ensuring that your financials reflect the true status of your projects.

Cost to Complete: The Cornerstone of WIP

A major driver of WIP accuracy is the Cost to Complete (CTC) figure. This is the estimated amount needed to finish a job. It directly influences percentage of completion and, consequently, revenue recognition and profitability.

Inaccurate cost-to-complete estimates can throw off the entire WIP schedule. To get this right, input from project managers is essential, along with real-time cost tracking from your accounting system.

🔗 Related Read: Cost to Complete Construction – Full Guide

Challenges with Traditional WIP Reporting

Despite its importance, WIP reporting is often painful. Many contractors face the following issues:

  • Manual data exports from accounting systems
  • Inconsistent cost-to-complete inputs from PMs
  • Time-consuming spreadsheet formatting
  • Risk of errors from version control and formula mistakes
  • Delayed reporting cycles that hinder decision-making

These limitations lead to missed opportunities and unnecessary risk.

Streamlining Construction WIP Reporting with PivotXL

PivotXL helps solve these challenges by combining the flexibility of Excel with the structure of a database. It integrates with accounting software like Sage 50, Sage 100 Contractor, and Sage 300 CRE, bringing WIP data into Excel for easy analysis and reporting.

Here’s how PivotXL makes WIP reporting easier:

  • Direct Integration: Pull trial balances and cost data straight from your accounting system.
  • Template Automation: Build WIP templates once and reuse them each month—no manual rebuilding.
  • Collaborative Workflows: Share templates with project managers to input cost-to-complete values directly.
  • Real-Time Refresh: Update WIP reports automatically as data changes, with no re-exports.
  • Custom Rollups: View WIP by job, division, region, or company—all in Excel.
  • Visual Insights: Monitor profitability, revenue recognition, and cost trends with built-in dashboards.
  • ASC 606 Compliance: Accurately track earned revenue based on percent complete and cost forecasting.

🔗 Related Read: ASC 606 Revenue Recognition for Contractors

Conclusion

WIP reporting in construction is about more than just compliance—it’s about control. By tracking work in progress accurately, you can anticipate financial challenges, protect your margins, and deliver clear reporting to all stakeholders.

If your current process feels like a monthly grind, it might be time to modernize it. PivotXL lets you keep using Excel while eliminating the repetitive, error-prone parts of WIP reporting.