Work in Process – Law Firm Accounting
Work in Process (WIP): Who knew you could rely on an 80’s rock band to impart such inspiration for law firm accounting? A WIP report is something you can find in LeanLaw reports, and it stands for “Work In Progress”! The WIP report is a valuable commodity that can be used as collateral to obtain financing – just what every cashflow challenged business needs.
On a single page within the LeanLaw WIP report, you can review pertinent information on unbilled attorney time or ready to bill hours, unbilled expenses, or fixed fees, recent payments, and funds held in trust. Law firms benefit from having this information at their fingertips within the LeanLaw software, and those firms managing financials with QuickBooks Online benefit further with data syncing between the two online platforms. Genius! If you ask me.
“Now whip it. Into shape. Shape it up. Get straight…”
If you’re having trouble running a WIP report or managing your QuickBooks data effectively, your business may struggle to produce the necessary information to acquire the financing it needs. Can you imagine!? All that Work In Progress and an attorney that doesn’t know how the matter is progressing? Yikes! I have seen some pretty creative ways a solo practitioner can set up their firm to manually track their data, but it is a painful process. For some firms, they may need to apply for a loan to keep their firm afloat. It might be something that is ‘make or break’ for a business. The idea of that scenario is so painful for a company trying to get to the next level. If you or someone you know is struggling with their reports, that is a great time to seek additional expertise. We hope you’ll solicit Artesani Bookkeeping to help you…
“Go forward. Move ahead. Try to detect it. It’s not too late…”
You can think of a WIP report as one of the most essential reports for your law practice. It is used to track the upfront costs paid by the law firm on a client’s behalf. You know, the fees that will eventually be billed back. What is so cool about using LeanLaw to track this is that it happens automagically. Just enter a bill from a vendor or a check for a fee that the law firm paid on a client’s behalf and code it to Advanced Client Costs asset account. It becomes even more powerful when you add the app Hubdoc to this workflow! (See this video on my app stack and workflow.)
“To whip it. Whip it good.”
For those of you who are still on the fence about LeanLaw’s WIP report, read How Work in Progress (WIP) Works on LeanLaw’s Software. There’s an example report shown in the article that you may find helpful to review before conversations with an accountant or doing the bookkeeping yourself. If you have any questions, feel free to contact us. If you love the song Whip it good by Devo, and need to get your groove on while keeping your books, here’s your opportunity to karaoke.
Join me on Social Media: Use #WIPReportsAreGood in QB Community Live! A public group on Facebook, where you can find me and a lot of other geniuses too. QB Community Live! is fun and friendly. Please, invite your bookkeeper too!