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Work in progress (WIP) is not properly on the balance sheet.

For projects across a year-end, WIP belongs on the balance sheet, based on hours worked versus already invoiced. Skipping it means profit volatility and accountant questions.

Try this first

  1. 1Determine per project at month-end: hours worked plus direct costs minus already invoiced.
  2. 2Positive balance (more delivered than invoiced) is 'WIP asset' on the balance sheet, negative (over-invoiced) is 'deferred revenue liability'.
  3. 3Use the project admin of your time tracker (Yoobi, Simplicate, Tijdpro) to export this monthly to bookkeeping.
  4. 4Run a fixed monthly routine: WIP calculated and booked at month-end, not just at year-end.
  5. 5Agree the valuation method (hours-based or percentage-of-completion) with your accountant and stay consistent.

When to bring us in

For larger projects or fixed-price contracts with risk, a structured WIP flow with your accountant helps.

See also

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