What is work in progress in a law firm, and why track it by matter?
What work in progress (WIP) means for a law firm, how it relates to billed and outstanding fees, and why seeing it inside each matter helps.
- By
- Vanguard AI®
- Last updated
- Facts checked
Work in progress, usually shortened to WIP, is work a firm has done but not yet billed. It is one of the most useful numbers a firm can watch, and one of the easiest to lose sight of when fees are kept apart from the work itself.
What does work in progress mean?
WIP is the value of time and work recorded on a matter that has not yet been invoiced. It sits between doing the work and getting paid for it.
A matter's fee position can be read as a simple sequence:
| Stage | What it means |
|---|---|
| Work in progress | Work done, not yet billed |
| Billed | Invoiced to the client |
| Paid | Received from the client |
| Outstanding | Billed but not yet paid |
Each stage tells a different story. High WIP can mean billing is falling behind. High outstanding amounts can mean collection needs attention.
Why does WIP matter?
Unbilled work is not yet income. The longer it sits, the harder it can be to bill: details are forgotten, clients question older entries, and cash flow suffers. Watching WIP by matter shows where billing is due and which matters are building up value that has not been invoiced.
Why track fees inside each matter?
Many firms keep fees in an accounting system that is separate from where the legal work is managed. That works for the accounts, but it means the people running a matter often cannot see its fee position while they work on it.
Keeping billed, paid, outstanding and WIP figures inside the matter helps in three ways:
- Fee earners see the position as they work. They can raise billing before WIP builds up.
- Partners can compare work and fees. A busy matter with little billed stands out.
- Conversations with clients are easier. The current position is to hand when a client asks.
What should a firm look for in fee tracking?
- The four figures above, shown per matter
- A firm-wide view of WIP and outstanding amounts
- Clear ownership of each matter, so someone is responsible for billing it
- Fees kept alongside the matter's tasks and deadlines, not in a separate silo
How does Donna AI® show fees?
Donna AI® keeps fees inside each matter, showing what has been billed, paid and outstanding and what work is in progress, alongside the matter's tasks, deadlines and hearings. The firm also gets a view of outstanding work across every matter.
See the Donna AI® product page or pricing.
Frequently asked questions
Is WIP the same as unbilled time?
Broadly, yes. WIP usually refers to the value of time and work recorded on a matter that has not yet been invoiced, though firms may also include disbursements.
How often should a firm review WIP?
Many firms review it monthly, matter by matter, alongside outstanding invoices. The right rhythm depends on how the firm bills.
Does tracking WIP replace the firm's accounting system?
Not necessarily. Seeing fees inside each matter helps the people running the work, while the accounting system remains the firm's financial record.