The Importance of Work-In-Progress Reporting
Join Zak Krauss and Brandon Manning as they explore the intricacies of estimating costs for construction businesses. Their main focus is the importance of work-in-progress (WIP) reporting.
Any seasoned construction business owner will tell you that understanding project budgets and estimated cost of completion is crucial. It’s more than just numbers; it determines the success of a construction project. When managing the process of estimating, a business owner has to address costs, contingencies, and change orders which can shift at a moment’s notice. It is imperative for construction businesses to be both agile and informed.
This is where WIP reporting comes into play.
WIP reporting provides a comprehensive understanding of what the final cost of a project will be. This includes all the change orders, the gains or shortfalls in estimating, and the remaining contingencies as the project moves closer to the finish line. WIP reporting is not just a tool for retrospective analysis. It’s forward-looking. With the insights drawn from this reporting method, businesses can make strategic adjustments, refining their estimating processes. It’s about learning from past projects and making informed decisions for the future. After all, every construction project is an opportunity to improve efficiency, and accuracy, and create better forecasting.
For construction businesses to thrive, they need more than just skilled labor and quality materials. They need the power of data and insights from tools like WIP reporting. As Krauss and Manning highlight, understanding your numbers today will set the stage for improved estimating and project management tomorrow.
Reach out to Zak and Brandon to see how the team at Signature Analytics can help your construction business to improve profitability and streamline operations through outsourced accounting and CFO business advisory services.