WIP vs. Job Costing:
What’s the Difference?

Two essential tools, one big difference: timing and visibility. This is Part II of a contractor’s 8-part guide to tracking job progress, profitability, and financial health while the work is still underway.

• Part I: What is WIP Reporting and Why it Matters
• Part II: WIP vs. Job Cost: What’s the Difference?
• Part III: How to Get Started with WIP
• Part IV: Understanding Key WIP Metrics (Earned Revenue, Over/Under Billings, FCAC)
• Part V: The Role of Project Managers in Accurate WIP Reporting
• Part VI: What to Look for in a WIP Reporting Solution
• Part VII: How Sage Intacct Automates WIP Reporting and Saves You Time
• Part VIII: How to Transition from Excel to Sage Intacct WIP Reporting

If you manage construction projects, you’ve likely heard both terms: job costing and WIP reporting. And while they’re closely related—and sometimes even use the same data—they serve very different purposes.

Think of job costing as the foundation. It’s where you track how much money you’re spending. WIP reporting builds on that foundation to show what those costs mean in terms of progress, revenue, and profitability—while the job is still in motion.

Let’s break it down.

What Is Job Costing?

Job costing is all about tracking the actual costs of a project—down to the penny.

Every labor hour, piece of material, equipment rental, and subcontractor expense gets logged and assigned to a specific job, and often to a specific cost code within that job. The goal is to know exactly where your money is going, and how closely those costs align with your estimate or budget.

With job costing, you can answer questions like:

• How much have we spent on concrete for Job 104?
• Are we exceeding our labor budget for the framing phase?
• What’s the total cost of this project so far?

This level of detail is critical for managing day-to-day project expenses. But while job costing tells you what you’ve spent, it doesn’t automatically tell you how far along the project is or whether you’ve earned the revenue to match those costs. That’s where WIP comes in.

What Is WIP Reporting?

WIP stands for Work in Progress, and WIP reporting takes job costing to the next level.

Instead of just showing what’s been spent, a WIP report measures job performance over time. It compares actual costs to forecasted costs to determine how much of the job is complete—and how much revenue you’ve earned to date, based on that progress.

WIP reports help you spot:

• Overbilling (you’ve billed more than you've earned)
• Underbilling (you’ve earned more than you've billed)
• Potential profit fade
• Jobs running behind (or ahead of) schedule or budget

WIP reporting also gives you a clearer financial picture for your company as a whole. Instead of waiting until a job wraps to measure profitability, WIP lets you recognize revenue as work gets done—month by month.

The Key Difference: Timing and Insight

The big difference between job costing and WIP reporting comes down to timing and visibility.

In short:

• Job costing tells you what’s happened.
• WIP reporting tells you where you’re headed.

Why You Need Both

If you’re only using job costing, you might know that you’ve spent $500,000—but have no idea if that’s 50% of the job or 80%. Without context, it’s hard to know what to do next. WIP provides that context.

Together, these tools help you:

• Forecast final project costs
• Recognize revenue more accurately
• Identify issues early (before they hit your bottom line)
• Build trust with financial stakeholders through consistent, transparent reporting

And when they’re integrated—especially within a modern system like Sage Intacct Construction—you can stop chasing spreadsheets and start managing with confidence.

Turn Your Numbers into Insight

At Alliance Solutions Group, we help construction companies move beyond basic job costing and manual spreadsheets. With Sage Intacct Construction, we’ll show you how to connect your cost data to real-time forecasts and generate accurate WIP reports with ease. If you’re ready to see where your jobs really stand, contact us for a personalized demo.

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Stop drowning in data. Start tracking the numbers that actually matter.

If you run a construction company, you’ve probably been told you should “track your KPIs.” The problem? There are hundreds of potential Key Performance Indicators you could measure. From labor productivity, safety incidents, backlog, equipment utilization, margins by job phase . . . the list goes on.

But here’s the truth: top-performing contractors don’t track everything. They track the right things. Here are the KPIs that separate the leaders from the laggards, and why you should be paying attention to them.

1. Work in Progress (WIP) Metrics

Yes, we’re talking about WIP again. That’s because it’s the heartbeat of financial visibility in construction.

Top contractors don’t just track costs and billings — they track earned revenue, percent complete, and over/under billings every single month. Why? Because that’s how you stop profit fade before it eats your margins.

Pro tip: If you’re still relying on spreadsheets, WIP metrics can feel messy. With a system like Sage Intacct Construction, the math happens automatically—so you’re not chasing formulas, you’re tracking profitability in real time.

2. Cash Flow Forecast

Cash is king in construction. You might have profitable projects on paper, but if billing lags behind or receivables pile up, you’ll feel the squeeze.

Top contractors forecast cash flow at least 90 days out. They want to know if overbillings today will cover payroll next month — or if a big receivable delay could create a crunch.

3. Backlog Gross Profit

It’s not enough to know how many jobs you have lined up. You need to know what those jobs are actually worth.

High-performing contractors track backlog gross profit—the projected profit locked into the jobs in your pipeline. It tells you whether you’re building future profitability or just stacking up low-margin work.

4. Labor Productivity

With labor shortages hitting everyone, you can’t afford to fly blind on productivity. Top firms measure labor hours earned versus labor hours spent.

That way, they know exactly which crews are outperforming (and why) and where projects are slipping. It’s not about micromanaging—it’s about making sure the right resources are in the right place at the right time.

5. Change Order Impact

Change orders can make or break profitability. Top contractors don’t just track how many change orders they’ve issued—they track how those changes affect margin, billing, and cash flow.

Unapproved change orders sitting in limbo? That’s risk you can’t afford to ignore.

6. Customer & Subcontractor Scorecards

This one’s often overlooked. Top contractors track the reliability of their subs (on-time, on-budget) and the payment history of their customers.

Why? Because you want to know which partners help your margins—and which ones drain them.

Why These KPIs Work

Notice what’s missing? You don’t see vanity metrics here. These aren’t “nice to know” numbers—they’re make-or-break indicators that give contractors the insight to:

• Protect margins
• Improve cash flow
• Strengthen forecasting
• Build healthier project pipelines

The best part: once you have the right KPIs in place, they actually make reporting easier. You’re not buried in noise. You’re focused on the signals that drive results.

Smarter KPIs, Smarter ERP

The challenge isn’t knowing what to track. It’s tracking it consistently. That’s why so many top contractors are turning to Sage Intacct Construction, implemented by Alliance Solutions Group.

With Intacct, your WIP reports, cash flow forecasts, backlog gross profit, and more can be automated and updated in real time. No more manual number-crunching—just clear, actionable insights that keep your jobs (and your business) on track.

Ready to Track What Actually Matters?

Alliance Solutions Group helps contractors cut through the clutter and focus on KPIs that move the needle. Want to see how Sage Intacct Construction can put the right numbers at your fingertips? Contact us for a personalized demo.

How to evaluate ERP systems for construction. Discover what features matter most and what questions to ask.

If you’re running a growing construction business using spreadsheets, disconnected systems, or accounting software that isn’t built for construction, you already know the challenges. Things get messy fast—missed deadlines, cost overruns, and confusion about which version of the budget is actually correct. That’s where ERP (Enterprise Resource Planning) systems come in.

But with so many ERP systems out there, how do you know which one is right for your construction business? Let’s break it down.

What Is an ERP System?

An ERP system brings all your core business functions—like accounting, project management, purchasing, billing, and payroll—into one connected platform. For construction companies, this means tighter control over job costs, better visibility into projects, and less time wasted jumping between systems.

Think of ERP as the digital job trailer for your business. It gives everyone from field teams to finance the information they need, when they need it.

What Makes a Construction ERP Different?

Not all ERP systems are created equal. Some are designed for retail. Some for manufacturing. Others, like Sage Intacct for Construction, are purpose-built for the unique demands of construction.

A good construction ERP should include:

• Project-based accounting – Track costs and revenue by job, phase, or task
• Real-time reporting – Know your financial position and project status without waiting for month-end reports
• Integration with field tools – Connect with systems your field teams use to minimize double entry
• Multi-entity support – Handle joint ventures, real estate subsidiaries, and multiple business units with ease
• Compliance-ready tools – Manage change orders, retainage, and union requirements with confidence

Key Questions to Ask When Evaluating ERP Options

Before choosing a system, take time to understand what your business needs now—and what it might need a few years down the road. Here are some questions to guide your decision:

Can it grow with us?

Look for a system that supports multiple entities, locations, and job types so you don’t outgrow it.

Does it speak construction?

You need more than generic accounting. Look for software that understands job cost coding, AIA billing, and WIP reporting.

How easy is it to get answers?

Can your team pull real-time reports without needing IT? Visibility is key to staying profitable.

What’s the total cost of ownership?

Don’t just compare software license fees. Ask about implementation, training, updates, and support.

Is it cloud-based?

A cloud ERP gives your team secure access from anywhere, typically includes automatic updates and backups, and supports easy integration with other tools.

Why Sage Intacct for Construction?

Sage Intacct for Construction is a modern, cloud-based ERP solution designed specifically for construction companies. It combines powerful financial management with project visibility and automation tools that save time and reduce risk.

Because it’s built for the cloud, it supports remote teams, integrates easily with field operations, and keeps your information safe and accessible.

See It in Action

Alliance Solutions Group has helped hundreds of construction companies streamline operations and gain better financial control with Sage Intacct for Construction. If you’re ready to explore whether it’s the right fit for your business, contact us for a personalized demo. We’ll walk you through what the system can do and how it can be tailored to your needs—no hard sell, just helpful answers.