How quickly should time be recorded after work is performed?

Same-day recording is the standard worth aiming for. Time recorded days or weeks later is far less accurate and more likely to be underestimated.

What's the difference between WIP and billed revenue?

WIP represents work done but not yet invoiced. It only becomes revenue once an invoice is issued, and only becomes cash once that invoice is paid.

How often should WIP be reviewed?

Monthly at minimum, ideally as part of a billing cycle that catches matters sitting in WIP too long without being invoiced.

WIP and Time Billing for Law Firms: Getting It Accurate

Q: Why is WIP so often inaccurate in law firms?

WIP relies entirely on accurate time recording. Delayed entry, vague narrative descriptions, and inconsistent recording habits across staff all distort the figure.

Published June 2026By True Tally Bookkeeping6 min read

WIP Is Only as Good as the Time Recording Behind It

Work in progress is meant to represent the value of work done but not yet invoiced. In practice, it's only as accurate as the time entries feeding it, and delayed entry, vague narrative descriptions, and inconsistent habits across staff all distort the figure.

Same-Day Recording Matters More Than It Seems

Time recorded the same day it's performed is consistently more accurate than time reconstructed days or weeks later. Memory fades, and reconstructed time almost always skews toward underestimating actual hours worked.

        Common pattern: a fee earner who records time weekly, from memory, will typically under-record by a meaningful margin compared to one who records contemporaneously.
      

WIP, Revenue and Cash Are Three Different Things

WIP is work done but not yet invoiced. It becomes revenue once an invoice is issued, and becomes cash only once that invoice is actually paid. Confusing these three stages leads to overly optimistic views of the firm's financial position.

Why Regular WIP Review Matters

Reviewing WIP monthly, as part of the billing cycle, catches matters that have been sitting unbilled too long, whether because of an oversight, a difficult client conversation being avoided, or genuine ambiguity about scope.

Practical Steps to Improve Accuracy

Same-day time entry as the cultural norm, not the exception.
Specific narratives rather than vague descriptions that are hard to justify if challenged.
Monthly WIP review built into the billing cycle, not left to year-end.

True Tally, bookkeeping for Mornington Peninsula law firms

We help Mornington Peninsula law firms track WIP accurately and build a regular review rhythm into the billing cycle. Book a free call to review your current process.

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WIP and Time Billing for Law Firms