Today we’ve released a WIP ledger in Practice Manager. This will make it much easier for accounting firms that prepare timesheets to keep track of their jobs and billable hours.
The challenge with releasing a WIP ledger was to do it without reducing the invoicing flexibility that Practice Manager users currently enjoy. So you’ll be delighted to know you can keep track of the exact amount of unbilled time and costs on each job no matter what types or combinations of invoices you use – even quote-based invoices and invoices prepared in Xero.
The introduction of the WIP ledger makes it much easier for all practices to calculate the true profitability of these services, even those that send regular fixed-fee invoices. You can also see the exact amount written on or off as each invoice is approved.
What’s in the WIP ledger release:
All invoice types (except miscellaneous) will now reduce the value of unbilled time and costs (WIP)
Actuals-based invoices will automatically calculate and record the difference between the recorded amount and the invoiced amount of time and costs against every WIP entry associated with that invoice. This applies to calculated and fixed price invoices. Not having to drill down and amend individual entries should make actuals-based invoicing much quicker.
Quote-based final invoices will also calculate and record detailed write-ons and write-offs.
Invoices from Xero will appear in WIP as deposit invoices allowing you to absorb them and calculate the correct write-on at a later date.
Before approving an ‘actuals’ invoice, you’ll be able to see the exact impact on current WIP position the invoice will have – i.e. how much will be written off, how much will be carried forward, etc.
The Job WIP balances report is a new report that shows the amount of unbilled time and costs and the value of unabsorbed interim fees for all jobs. It is subtotalled by client and can be run for selected account managers (partners) if required. It can also be run as at ANY date.
The new WIP control report shows a summary of the WIP movements and position for ANY date range.
The Estimated billings report now runs a lot faster due to the introduction of the WIP ledger.
Lock dates. The introduction of optional lock dates let you decide which periods’ transactions can be edited. With flexible lock dates the administrator can always release the lock on a period if they have a legitimate prior period change to make. There are two lock dates:
- WIP lock date prevents users changing timesheets or editing costs from prior months.
- Period lock date prevents invoices being amended or added in prior periods.
Still to come
While there are some handy features in this release, it is just the tip of the iceberg. The WIP ledger gives us with the ability to measure and report on so much more in future releases.
For instance, we’ll be adding one or two new report builder views in the near future so you can create your own WIP, production and write-on reports.
And when the revamped Practice Manager is released next year with a new reporting engine included, there’ll be a whole lot of new, fast, and flexible reports and dashboards with drill-down functionality. Many of these reports will make use of the new WIP ledger.
Sign up now for Practice Manager – it’s free for Xero Silver Partners and up as part of the Xero Partner Program.
Upcoming Workpapers update
On top of this, our latest Workpapers update goes live on December 5. This update features a number of user-requested tweaks and enhancements. We’re also providing a new workpaper – Borrowing Costs – for our Australian Partners.
We’re already working on our first release for 2014, so thanks to the 400+ firms and thousands of individual accountants and bookkeepers now using Workpapers. Your positive feedback and useful suggestions make our job that much easier.
If you’re in New Zealand, Australia or the United Kingdom you can sign up now for Workpapers – it’s free for Xero Silver Partners and up as part of the Xero Partner Program.