Developing a WIP (work-in-progress) is probably the most important financial responsibility when determining the stated profitability factor of a construction company. If the work-in-progress is not accurately valuated, any financial results will be meaningless.
Most business financial decisions are based on profitability. If the financial information available is incorrect, there is no telling what the consequences of those decisions will be. Even so, many small and medium businesses are not familiar with the procedures or putting together an accurate WIP report.