How to Manually Calculate WIP Without Job Software

Understand your project profitability without needing expensive tools

Introduction: Not every home builder wants to rely on job costing software to understand their Work in Progress (WIP) numbers. If you're looking for a hands-on way to assess profitability and billing status without jumping into tools like JobTread, Jon Markee, your Builder CPA, walks you through how to calculate WIP manually—using a simple spreadsheet template you can grab for free.

Why Go Manual?

While modern job software can handle WIP reporting automatically, not everyone is ready to invest in or adapt to a new system. That’s where the manual method comes in—giving you control and clarity using just a spreadsheet.

Download the Free Template

Head over to MyBuilderCPA.com and check out the Freebies section. You'll find a downloadable WIP template:

• Make a copy in your Google Drive or download for Excel

• Follow the built-in instructions on the first tab

• Customize it for your jobs, billing, and costs

How It Works

The template is designed for you to enter your job details and let the formulas do the math. Here’s what you’ll need:

• Job Details: Job name or ID, original contract amount, original estimated cost

• Change Orders: Enter signed change orders and their associated cost

• Actual Costs to Date: Pull these numbers after books are closed and reconciled

• Billing to Date: Enter how much you’ve invoiced

• Percent Complete: If you can’t get to the job site, use the calculated percent instead

What You’ll Learn From It

Once filled out, the spreadsheet tells you:

• Earned Profit to Date

• Overbilled or Underbilled Amounts

• Total Revised Contract and Costs

• Whether You Should Invoice More or Hold Off

Important Notes

If you decide to take this a step further and post the WIP adjustments in QuickBooks:

• You’ll need to enter monthly journal entries for over/under billings

• These should be reversed at the start of the next month

• Once you start, you’ll need to continue monthly entries to maintain consistency

Work With a Pro

If you're posting WIP entries in QuickBooks, it’s best to work with a qualified bookkeeper or accountant familiar with construction accounting. This helps avoid mistakes and keeps your records accurate.

Pro Tip

Always reconcile your books before calculating WIP. If your expenses aren’t up to date, your actual costs will be off—and that throws everything else off too.

Conclusion: Calculating WIP manually might feel old school, but it’s a powerful tool when done right. You’ll gain insight into how much profit you’ve earned, whether you’re over or underbilled, and what action to take next. Download the free template and try it out yourself—and stay tuned for Jon Markee’s next video where he walks through how to post WIP in QuickBooks.