How Bookkeeping Pros Can Help You Optimize Your WIP Schedules
Construction projects are famously complex, which makes accurate tracking incredibly difficult. One of the best ways contractors manage their projects is through the work-in-progress (WIP) schedule. They track project progress, modify costs and resources, and secure profitability with an accurate WIP.
However, many companies have trouble getting accurate and up-to-date data, which leads to outdated and wrong WIP reports. It is hard for construction companies to make money or even know if they are making money.
That is where a best-in-class construction bookkeeping firm can help. These firms have expertise in accounting. They also know the ins and outs of the construction industry. You may trust their expertise and procedures to handle your WIP.
In this blog, we will talk about:
Top Challenges in Construction WIP Schedules
1. Tracking Costs and Revenue
Cost and revenue in a WIP report are perhaps the trickiest to measure. Since no two projects are the same and each has its own different scope, moving parts, and costs. Even though it's tough, costs and revenues must be tracked correctly to ensure the business is profitable.
To address this challenge, contractors must have robust record-keeping systems in place. All job-related costs, like labor, materials, etc., must be recorded and reconciled accurately and in real time.
2. Dealing With Change Orders
Construction change orders are common. They impact project budgets and timelines, making it hard to keep the WIP report up to date. Contractors must handle change orders well to succeed.
If change orders aren't tracked nicely, they can lead to