WIP Report Explained for Law Firms

WIP stands for Work In Progress—and a WIP Report shows all billable work your firm has done but hasn’t yet invoiced. It’s one of the most important financial tools for managing law firm cash flow and revenue.

✅ What a WIP Report Includes:

• Client or Matter Name

• Timekeeper (lawyer/staff responsible)

• Date of work done

• Billable hours recorded

• Hourly rate or fixed fee value

• Total unbilled amount per matter

• Age of the work (how long since the work was done)

🎯 Why It’s Crucial for Law Firm Cash Flow:

1. Forecasts Future Income – WIP is potential revenue.

2. Highlights Billing Delays – Aged WIP = delayed invoicing = delayed cash.

3. Improves Accountability – Identifies who is logging time, and who isn’t.

4. Supports Lockup Calculations – WIP + Debtors = Total lockup days.

5. Drives Better Billing Habits – Encourages regular time entry and faster billing cycles.

   
   
   
   

🔍 How to Use a WIP Report Effectively:

• Review weekly or fortnightly to stay on top of billables.

• Sort by age to flag stale or forgotten time.

• Discuss in team meetings to reduce aged WIP and improve cash conversion.

• Bill progressively instead of waiting for matter completion.

💡 WIP Tip:

If your WIP is consistently high, you might have:

• Time not getting billed

• Bottlenecks in your billing process

• Clients unaware of accruing fees

• Scope creep with no additional invoicing

📊 WIP Report + Cash Flow = Power Combo

Use your WIP report alongside your Aged Receivables and Payments Received reports to monitor:✔ What’s been worked✔ What’s been billed✔ What’s been paid

Book a FREE call with us if you wish to free up your time doing accounting tasks and focus on what truly matters.

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