What it is
For a time-and-materials practice, unbilled work in process is often the largest asset after receivables and the least tested. Hours are priced at standard, billed at a negotiated amount and written off when the client pushes back, so the balance depends on judgment about what will be collected.
This workbook computes standard value, billed, write-offs and write-ups for each engagement, derives unbilled WIP and billing realization, applies a reserve by age, and compares chargeable hours by person with target utilization.
When to use it
- At year end, to support unbilled WIP and the reserve for unrecoverable amounts.
- Each month, to review realization and aging with the engagement partners.
- To reconcile time recorded by engagement with time recorded by person.
What’s inside
- Engagements tab with 30 rows: standard value, billing realization, aging reserve and net unbilled WIP
- Reserve tab with four aging buckets, aged summary and realization target
- Utilization tab with 24 rows and a below-target flag
- Tie-outs of WIP, reserve and hours to the ledger and between tabs
Standard cited
This template follows ASC 606. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
How is unbilled WIP calculated?
Standard value (hours times standard rate) less billed, less write-offs, plus write-ups. A negative result means billings exceed standard value and is flagged for review.
Where do the reserve percentages come from?
From your collection and write-off history by age. The workbook has no default percentages.
Does this cover fixed-fee engagements?
It covers time-based WIP. Fixed-fee and milestone engagements are measured by progress under ASC 606, with the contract asset or liability recorded separately.
Related templates
- Audit Program: Professional Services Firm
- ASC 606 Revenue Recognition Schedule
- Accounts Receivable Aging and Allowance Workpaper
- Staff Utilization and Realization Tracker (Excel)
Last updated 11/05/2026. All free templates.