QuickBooks® for Contractors Bookkeeping Tips & Training
QuickBooks Add-On Trials
Request FREE 30-day Trials of QuickBooks add-ons for Certified Payroll, AIA Billing & Payroll Wage Management.
Free 30 day trials of QuickBooks integrated add-ons for certified payroll, aia billing and weighted-average overtime
Show Cart

WIP Calculator for Percentage of Completion Calculations

Print Friendly, PDF & Email

A WIP Calculator is a must for Percentage of Completion calculations.  Many times, business owners will create a simple Under/Over Billings report with Percent Complete calculations – and that’s fine for some businesses.

However, when the percentage-of-completion is the method of accounting that is required, the accounting principle of full disclosure requires the presentation of a work-in-process schedule in a company’s financial statements – and you also need to provide this information to your bonding company. This schedule should provide the details of each contracts or projects stage of completion and profitability to date as well as in the current period of reporting.  Its format varies, but at a minimum should include at least the following seven components.

wip calculatorSeven Components of a detailed WIP/Percentage of Completion Report

  1. Contract Totals
  2. Totals through the end of the prior year
  3. Actual accumulated contract totals through the end of the current year
  4. Over/Under billings
  5. Totals for the current year
  6. Percent complete on the job
  7. Balance to finish

You can easily create a detailed WIP/Percentage of Completion Schedule from QuickBooks IF:

  • You create an Estimate for EVERY job/project AND there is only one Estimate per job
  • You’ve modified the QuickBooks Estimate Template to include Cost and Markup columns and you utilize those columns when building your Estimate
  • All of your “Items” have been set-up to capture BOTH revenue and costs (double-sided items)
  • You enter ALL job related employee time and vendor costs using double-sided items
  • You create Job Types for WIP, Over/Under and Completed (with sub-types for years) and assign them correctly to your jobs

If all of these things currently exist in your QuickBooks company data file, you can easily create a detailed WIP/Percentage-of-Completion schedule by creating an Actual vs. Estimate Summary Report –> exporting it to QuickBooks and then plugging that data into our WIP Calculator – all WITHOUT spending hours performing manual calculations!

Don’t use QuickBooks, that’s ok too, you’ll just need to plug the following numbers for each job into our WIP Calculator:

  • Est. Cost
  • Act. Cost
  • Est. Revenue=Total Contract Value
  • Act. Revenue
  • Total Revenues Earned – Prior Year
  • Cost of Revenue – Prior Year

WIP Calculations can be Easy!

That’s right, I said EASY!  Watch the video to find out more:

Your privacy is protected. We will not sell, rent, or otherwise distribute your contact information! See our Privacy Policy for complete details.

Purchase the WIP Calculator, instructional video, and written documentation on how this Calculator was created for $50.00.

If you find this post to be helpful or of interest, please take a moment and share it on your favorite social networking site 🙂


2 Responses to WIP Calculator for Percentage of Completion Calculations

    Leave a Reply

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    About Your Host:
    Nancy Smyth, Certified QuickBooks ProAdvisor

    Nancy Smyth, Sunburst Software Solutions, Inc.
    QuickBooks Construction & Payroll Expert

    I've been using and supporting QuickBooks products since the early 1990's. I've worked with thousands of contractors, assisting them with QuickBooks setup, Certified Payroll Reporting requirements, AIA Billing and Weighted-Average Overtime.

    QuickBooks is a powerful product, but learning how to use it in your construction business can be difficult. I hope you find resources available here to be helpful.

    Get the latest news

    Sign up to receive information about our newest eBooks, live webinars, pre-recorded video's and free QuickBooks training via email:

    Enter your email address:

    Delivered by FeedBurner

    We promise not to sell, rent, or otherwise distribute your name and email address.

    QuickBooks Time Tracking:

    Save 10%/Free 14 day trial

    QuickBooks Time Tracker