Understanding Work-in-Progress (WIP): Definitions and Examples
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Do you calculate your Work In Progress Accounting Adjustment Figure? If you are leaving the Work In Progress calculation to your accountant then chances are you are paying too much tax and you are going to experience severe cashflow problems as soon as your sales stop growing. A building company that does not calculate its WIPAA, which is the Work In Progress Accounting Adjustment figure each month, is nothing more than a giant ponzi scheme. And when the music stops, and it will stop, those guys
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