WIP (work in progress) is work you’ve done but not billed yet. Someone logs six hours; that is WIP. You bill it; the WIP goes away.
WIP can go below zero
WIP is one number:
- Positive WIP: work done, not billed yet.
- Negative WIP: you billed ahead of the work. This is normal with fixed fees, retainers, and pre-bills. Many firms want to sit here.
When WIP comes off
Each engagement uses the firm default or picks one:
- On invoice: when the invoice is issued.
- On cash settlement: when the client’s money actually settles.
The setting in force is locked onto each invoice when it’s issued. Changing the setting later doesn’t change old invoices.
Budgets
A budget is the money ceiling for a project.
Budgets are a hard limit. If a line would go past the budget, Flows trims it or holds it back and tells you on the Billing review tab.
Budgeted hours are different. They’re an estimate for planning and never
stop billing.
Pre-billing
Pre-billing is billing before the work is done. Each project can allow it up to a Pre-bill cap, a percentage of the budget. For example, 100% for a fixed-fee tax return but only 50% for open-ended advisory.
Where to see it
The billing group’s Services tab has a WIP, budgets & adjustments section. It shows each project’s budget, what’s been used, and the WIP posted, plus write-ups and write-downs.
Two different questions
