One important report contractors need is the work in process (WIP) report.
Bonding agents, banks and underwriters use WIP reports to determine a contractor’s profitability.
The report shows whether the contractor is properly estimating costs for jobs and is billing an adequate amount. It is also used as a metric for a contractor’s credibility.
The WIP schedule should be prepared monthly for internal use as a top management tool to understand how the Company is performing on its individual contract level and company-wide for all contracts as well. Preparation of a monthly WIP is the only accurate way to know what the true profitability of the Company is.
Given today’s volatile construction market, a contractor needs to know monthly where the individual contracts and the Company’s profitability is so that they can make decisions as problems or trends are happening and not “react” once a year after the CPA comes in to close the year.
With our ComputerEase software you can generate a WIP with the click of a button. www.constructive-solutions.com