For service-based businesses and project-driven firms using Xero, tracking Work-in-Progress (WIP) is essential for understanding how much work has been completed, what has been billed, and how much revenue should be recognized — especially under ASC 606 standards for construction and contractors.

But here’s the catch — Xero doesn’t have a built-in WIP reporting module like traditional construction or professional services ERPs. As a result, finance teams often struggle with visibility into project-level profitability, percent complete tracking, and compliant revenue recognition.

That’s where Excel, combined with a reporting automation tool like PivotXL, helps bridge the gap. It brings structure, automation, and audit-ready workflows to your WIP reporting and revenue recognition process.

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➡️ Revenue Recognition in for Contractors ASC 606

What Is a WIP Report in Xero?

A Work-in-Progress (WIP) report shows the current financial status of ongoing projects. It typically includes:

  • Project contract value or budget
  • Estimated and actual costs
  • Percent complete
  • Earned revenue to date
  • Billed to date
  • Overbilling or underbilling
  • Forecasted cost to complete
  • Gross margin projections

In Xero, this data isn’t available natively in one place. Users must combine invoices, time tracking, expense reports, and project budgets to build their own WIP analysis—often in Excel.

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Why WIP Reporting Is Challenging in Xero

Xero is an excellent cloud accounting tool for small to mid-sized businesses, but it’s not built for complex project accounting out of the box. Here are common pain points:

1. No Native WIP Module

Unlike platforms like CMiC or Foundation, Xero doesn’t have a built-in WIP report. Users must export data from multiple areas—Projects, Invoices, Expenses—and build WIP schedules manually.

2. Limited Forecasting Tools

Xero lets you track time and budgets in Projects, but it doesn’t calculate cost-to-complete or forecast remaining margin. Finance teams must build these calculations outside Xero.

3. Disconnected PM & Finance Collaboration

Project managers often work in tools like Trello, Asana, or spreadsheets, while finance lives in Xero. There’s no shared system to input job status or percent complete, making collaboration clunky.

Why Cost to Complete and Percent Complete Matter

Two key inputs drive every WIP report:

  • Cost to Complete (CTC): How much more will it cost to finish the job?
  • Percent Complete: What portion of the work has been done?

These numbers determine how much revenue should be recognized and whether you’re overbilling or underbilling. Without accurate CTC and progress updates, your profitability forecasts will always be reactive—never strategic.

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➡️ Cost to Complete Construction – Full Guide

How PivotXL Helps You Build a Smart WIP Report on Top of Xero

PivotXL is an Excel-based financial reporting platform that connects to systems like Xero and gives you powerful WIP reporting tools — all while staying in the spreadsheet environment you already know.

Here’s how it transforms Xero WIP tracking:

📊 Connected Excel Templates

Build customized WIP reports in Excel, connected to your Xero data and project updates.

  • PMs input percent complete and cost to complete by project
  • All data rolls up to a live WIP schedule
  • Earned revenue, billing variance, and margin projections are calculated automatically

🔄 Direct Sync with Xero

PivotXL connects directly to your Xero account, syncing:

  • Invoice and billing data
  • Project budgets
  • Time tracked and expenses

No more manual downloads or VLOOKUPs — your WIP report stays fresh and reliable.

📈 Automated Roll-Ups and Dashboards

Roll up project-level WIP data into department, client, or service-line summaries. Spot trends in underbilling, margin erosion, or delayed projects across your portfolio.

👥 PM Collaboration Without Chaos

Let project managers update their own job forecasts in a controlled Excel template. Their updates feed directly into your WIP report — with full audit trail and access controls.

Benefits of Using PivotXL for Xero WIP Reporting

  • ✅ No More Manual Spreadsheets: Replace manual exports with smart templates
  • ✅ Real-Time Insights: Use live data from Xero to power accurate WIP reports
  • ✅ Collaboration Ready: Let PMs own their forecasts — no more email ping-pong
  • ✅ Audit Trail Included: See who entered what and when
  • ✅ Smarter Forecasts: Forecast revenue and margins with confidence

Conclusion

Xero may not have built-in WIP reporting, but that doesn’t mean you’re stuck with disconnected spreadsheets or guesswork.

With PivotXL, you can turn Excel into a structured, real-time WIP reporting system that integrates with Xero and empowers your team to collaborate, forecast, and report with confidence.

You don’t need to leave Xero — just make it smarter.