Скачать или смотреть CashFlow Tip 10 - Work in Progress [Cash Flow 101]

Work in progress (WIP) is kind of like inventory, but not the same. WIP represents money you have invested in partially completed jobs. What can you do about managing your WIP?

We talk a lot about the Cash Conversion Cycle. As it relates to Work in Progress, it is about taking your investment in raw materials and wages and turning it back into cash for your business.

The faster you can deliver your end product and get back the cash, the better for your cash conversion cycle!

As with most things cash, you have to know your numbers. Monitoring your Work in Progress is crucial because you can have a lot of potential cash flow tied up in your WIP. So regular tracking of this key number will be essential.

The method you choose to calculate cost will impact on how you value your closing Work in Progress. Given that it is an inventory type of item, so has a closing value - this directly relates to overall profitability. But it really is accounting trickery and this is a perfect example of profit isn’t cash flow – and you can go broke making a profit.

We want to help small business owners build better businesses through improving money management and creating positive cash flow.

Mastering your cash flow is critical to having your business fund the lifestyle that you want. So stop working so hard for your business – instead get your business to work harder for you!

To get access to the resources mentioned in the video – check out our Facebook Group or reach out to us and ask.

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TIMESTAMPS:

[ 1:03 ] Raw Materials + Labour
[ 1:49 ] Money Meter
[ 3:07 ] YouTube Extra – 3 Things

If you haven’t seen Video 9 around Inventory, check it out here    • CashFlow Tip 9 - Inventory [Cash Flow 101]  

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Sheree is an Accountant and founder of Bee Group Accountants and sixty:forty. She has operated her own accounting and advisory firm since 2005, holds long term memberships with CPA Australia and the Taxation Institute which includes the prestigious Chartered Tax Advisor designation.

Here at Bee Group we are passionate about helping small business owners to navigate the complex tax and compliance requirements in Australia. We do this by providing access to information that you need to help start, build, manage and grow your business.

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