# Work in Progress (WIP) Tracking

> Financial management practice in professional services tracking unbilled time and expenses accumulated on client matters, providing visibility into revenue pipeline and identifying billing delays that impact cash flow.

- **URL:** https://www.clio.com/blog/billable-hour
- **Category:** Time Tracking Practice
- **Tags:** Financial, Professional Services, Billing, Cashflow, Accounting
- **Updated:** 2026-03-18 00:29
- **Canonical page:** https://timetrack.works/items/work-in-progress-wip-tracking

## Details

## Overview

Work in Progress (WIP) represents billable time and expenses that have been incurred but not yet invoiced to clients. Tracking WIP is essential for understanding revenue pipeline and managing cash flow in professional services.

## What WIP Includes

- Unbilled attorney/consultant time
- Unbilled expenses
- Work completed but not invoiced
- Time entries awaiting approval
- Expenses awaiting client billing

## Why WIP Matters

### Cash Flow
High WIP = delayed revenue realization

### Revenue Recognition
GAAP accounting requires WIP tracking

### Collection Risk
Older WIP less likely to be collected

### Client Relationship
Large WIP balances may indicate communication problems

### Operational Health
Excessive WIP signals billing inefficiency

## Healthy WIP Management

**Best Practices**:
- Bill promptly (monthly or more frequently)
- Monitor aging of unbilled time
- Set WIP thresholds that trigger billing
- Regular client communication about work performed
- Clear billing arrangements upfront

**Targets**:
- Keep WIP under 60-90 days
- Bill within 30 days of work completion when possible
- Track WIP by client and matter

## Time Tracking Connection

Accurate WIP requires:
- Timely time entry (don't delay recording)
- Accurate client/matter coding
- Proper expense categorization
- Regular timesheet approval
- Integration with billing system

## WIP Reports

Common reports:
- Total WIP by client
- Aged WIP (30/60/90+ days)
- WIP by attorney/consultant
- WIP by practice area
- WIP trend over time

## Pricing

Free metric — WIP tracking is built into most legal/professional services billing software.

---

_This Markdown mirror is generated by Ever Works for AI agents. The canonical HTML page is at https://timetrack.works/items/work-in-progress-wip-tracking._