Work in progress (WIP)
also known as WIP · unbilled work
Work an agency has started but not yet billed - effort already spent that has not turned into an invoice or cash.
For example, two weeks into a month-long project, the team has done substantial work but not yet invoiced it. That unbilled effort is WIP - real value created, but not yet money in the door.
Why it matters to agencies: tracking work in progress shows how much value is tied up unbilled, which is vital for cash-flow and profitability visibility. A large or ageing WIP balance is a warning that invoicing is lagging delivery - effort that could quietly turn into a write-off if not billed.
- Letting WIP age before billing it.
- No visibility, so unbilled work piles up.
- Treating WIP as revenue before it is invoiced.
What is work in progress (WIP)?
Work an agency has started but not yet billed - effort already spent that has not turned into an invoice or cash.
What does work in progress mean for an agency?
Work that has been done but not yet billed - value created that has not become an invoice or cash.
Why track work in progress?
It reveals how much unbilled value is tied up, flags lagging invoicing, and gives a truer picture of profitability and cash flow.
What is the risk of high WIP?
Unbilled work can age and become hard to invoice, drifting into write-offs and a lower realization rate.