Master Project Financials with the Work in Progress Report by EVX Software

A Work in Progress (WIP) summary by project report is a financial tracking tool used to evaluate a project's current status in terms of both its progress and financials. It provides a snapshot of the amount of work completed, the revenue already billed, and the amount ready to be invoiced for a specific period. The WIP report helps users manage cash flow and project profitability by comparing the contracted amount (what was agreed upon with the client) against the work completed and invoiced to date.

The report includes several key elements:

• Project Number: A unique identifier for each project.
• Project Name: The title of the project as defined in the system.
• Contracted Amount: The total value of the project based on the contract.
• Estimated Revenue: The anticipated revenue based on the project scope.
• Total Invoiced Amount: The amount invoiced to the client so far.
• Amount Ready to Be Invoiced: The value of work completed but not yet invoiced.

The Work in Progress summary by project report in EVX Software allows users to run the report based on a selected date range. This flexibility helps project managers assess financial data over any period—whether it’s monthly, quarterly, or annually.

Here’s how the report works in the EVX Software system:

1. Project setup: The project is first defined within the system, with a clear contract amount and estimated revenue based on the project scope.
2. Date snterval selection: Users can select the date range for which they want the report to run. This allows for more precise insights into the project performance during a specific timeframe.
3. Calculation of amount ready to be invoiced: EVX Software automatically calculates the amount of work completed within the date interval that is ready to be invoiced. This figure is crucial for understanding how much revenue is ready to be recognized. This data is extracted from our Task Manager module.
4. Displaying key metrics: The system then displays key financial figures, including the contracted amount, total invoiced amount, and the amount of work yet to be billed.

The flexibility of the EVX Software WIP report helps project managers track financials accurately while also providing insights into the status of the project. The result is a comprehensive view of the project’s financial health, enabling better forecasting and decision-making.

A step-by-step guide to interpret the data in the report

1. Review the project information:
   
   • Project number: Ensure that the project number matches the one you are analyzing.
   • Project name: Verify the correct project to ensure accuracy in reporting.
2. Compare the contracted amount to estimated revenue:
   
   • This is the baseline for understanding the financial scope of the project. The contracted amount tells you what was agreed upon with the client, while the estimated revenue reflects the expected income from the project.
3. Examine the total invoiced amount:
   
   • This shows how much has been billed to the client thus far. Compare it with the amount ready to be invoiced to ensure you're billing the client appropriately for completed work.
4. Analyze the amount ready to be invoiced:
   
   • This is the crucial metric that tells you how much work has been completed but not yet invoiced. If this amount is significant, it indicates that revenue has been earned but not yet recognized.
5. Assess project health:
   
   • By comparing these figures, you can gauge whether the project is on track in terms of both budget and schedule. If the invoiced amount is too low compared to the work completed, you may need to address billing or revenue recognition to maintain cash flow.

Conclusion

The Work in Progress summary by project report is a vital tool for Environmental Consulting and Engineering firms that want to stay on top of their project finances. By providing clear insights into invoicing, revenue recognition, and overall project performance, this report helps users make more informed decisions and maintain financial control.

If you're ready to see how EVX Software can help simplify your project management processes, we invite you to book a demo and explore all of our powerful features designed to support your business.