sboghossian WIP Aging Report
When to use this
Use this skill to:
- Run the monthly or weekly WIP review to identify stale unbilled time before it becomes uncollectable.
- Prepare the partner billing meeting — each partner sees their matter list sorted by WIP age.
- Identify matters where an interim bill is overdue (WIP exceeds agreed billing cadence or credit limit).
- Flag likely write-off candidates before year-end so provisions can be made.
- Monitor whether fee-capped matters are approaching their cap (remaining fee capacity vs. remaining WIP).
WIP left unbilled degrades over time: clients forget the work, dispute the descriptions, or face their own budget pressure. The longer WIP ages, the more likely it is to be written down or off.
Core concepts
What is WIP?
Work-in-progress (WIP) is time entered and expenses recorded against a matter that has not yet been invoiced. It sits on the firm's balance sheet as an asset until billed (when it becomes accounts receivable) or written off (when it becomes a loss).
Age buckets
| Bucket | Days since entry | Risk level |
|---|---|---|
| Current | 0–30 | Low — normal billing pipeline |
| Aging | 31–60 | Moderate — follow up with billing partner |
| Old | 61–90 | High — requires reason; consider interim bill |
| Stale | 91–180 | Very high — write-off candidate unless justified |
| Critical | 180+ | Near-certain write-off territory; escalate to managing partner |
Firms set their own thresholds; the above are common defaults. Adjust to firm billing policy.
Required inputs
| Input | Source |
|---|---|
| WIP extract from billing system (all unbilled entries) | Billing system (Clio, Elite, Aderant, etc.) |
| Matter details (client, practice area, responsible partner) | Matter database |
| Billing policy thresholds (WIP credit limit, billing cadence) | Firm policy document |
| Fee-cap / budget amount per matter (if applicable) | Engagement letter or fee quote |
| Prior WIP report (optional, for trend comparison) | Prior period file |
Report structure
Summary dashboard
WIP AGING REPORT — [Firm] — [Report Date]
AGE BUCKET | # Matters | WIP $ Value | % of Total WIP
─────────────────────────────────────────────────────────
0–30 days | | |
31–60 days | | |
61–90 days | | |
91–180 days | | |
180+ days | | |
─────────────────────────────────────────────────────────
TOTAL | | | 100%
FLAGS: [count of matters in each flag category — see below]
Detail: by matter (drill-down)
For each matter in the 61+ day buckets:
Matter: [ID / Short Title]
Client: [Name]
Practice: [Group]
Responsible: [Partner]
Total WIP: $X
— Time: $T (Y hrs × avg rate $R)
— Expenses: $E
Oldest entry: [Date] ([N days ago])
Fee cap remaining: $F (or N/A)
Billing cadence: [Monthly / Milestone / On demand]
Last invoice: [Date]
FLAG: [See flag types below]
By partner
Summarize total WIP by responsible partner, sorted descending, with their oldest WIP date highlighted. This is the input to partner billing meetings.
By client
Aggregate WIP across matters per client. Flag clients whose aggregate WIP exceeds any agreed credit limit.
Flags
| Flag | Trigger | Action |
|---|---|---|
| WIP exceeds billing cadence | WIP age > agreed billing cycle (e.g., >30 days for monthly-billing matter) | Generate interim bill |
| WIP > client credit limit | Aggregate client WIP > firm's defined credit limit for client | Hold new work until bill issued + paid; or get partner authorization |
| Stale WIP — write-off candidate | Any WIP entry >90 days (default threshold) | Partner review; write-off or produce explanation + billing plan |
| Fee-cap at risk | WIP + billed fees > 85% of matter cap | Alert responsible partner immediately; scope discussion needed |
| Inactive matter with WIP | No time entries for >60 days but WIP outstanding | Matter may be on hold or closed without billing — investigate |
| Expenses aging | Expense entries >60 days unbilled | Disburse to client ASAP; aging expenses signal billing process failure |
Partner action email
For each partner with flagged WIP, the skill generates a draft email:
Subject: WIP Review Action Required — [Partner Name] — [Month]
Dear [Partner],
Your current WIP summary as of [Date]:
Total WIP: $X
WIP in 60+ buckets: $Y ([Z]% of your total)
Matters requiring action:
1. [Matter 001] — $A WIP — [Flag: Stale / Cap risk / Credit limit]
Suggested action: [Issue interim invoice / write off $B / partner note required]
2. [Matter 002] — $B WIP — [Flag]
Suggested action: [...]
Please confirm actions by [Date]. Finance will process approved write-offs and bills
in the [Month] billing cycle.
[Finance Team]
Year-end considerations
- WIP provision: Stale WIP (90+ days) should be provisioned at a discount (commonly 50–100% depending on age and client history) for financial reporting purposes.
- Revenue recognition (US GAAP / IFRS 15): Law firms must assess whether WIP is realizable; firms using cash-basis accounting write off WIP when it is determined not collectible.
- Tax: Write-offs must be documented with partner sign-off to support tax deduction in most jurisdictions.
Jurisdictional notes
- MENA practices: Year-end timing varies across the GCC (Hijri year vs. Gregorian). Run WIP aging using Gregorian calendar for international billing, but align internal review with firm's fiscal year.
- Lebanon: Currency considerations require WIP denominated in USD vs. LBP to be tracked separately; assess collectibility in functional currency.
- UK SRA: Firms using the SRA-compliant billing ledger must ensure WIP descriptions are sufficiently detailed to support the invoice narrative requirements.
Related skills
- [[efirm-finance-realization-rate-tracker]]
- [[efirm-finance-utilization-dashboard]]
- [[efirm-finance-trust-account-reconciliation]]
- [[efirm-matter-summary-for-billing]]
- [[efirm-finance-partner-comp-allocator]]