Start by mastering your Work in Progress (WIP) and Stock.
Most businesses track them…

But very few can predict the cash flow and profit tied up inside them.

And that’s where the real power lies.

1. Predicting Cash Flow
Your WIP and stock are holding more cash than you think.
Every material purchase, every hour of labour, every unfinished job — it’s all money waiting to return.
When you can forecast:
•     How long stock sits before being used
•     How long jobs stay in WIP before being invoiced
•     When customers actually pay
…you stop reacting and start planning.
Predictable WIP = predictable cash flow.

2. Predicting Profit
Profit isn’t created when you invoice.
It’s created as work is completed.
When you track:
•     Actual costs
•     Percentage of completion
•     Expected final margin
•     Variances and overruns
…you can see your profit before month‑end, not after.
No more surprises. No more “where did the margin go?”

The takeaway
If you want control of your business, you need control of your WIP and stock.
Not just counting it — predicting it.
The businesses that master this don’t just survive.
They scale with confidence

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au/contact-us
 Phone +61 3 9428 1062
Email admin@mcnamaraandco.au

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