Work in progress makes up the bulk of daily operations in any company, but it’s often the hardest to keep track of. From ongoing, large-scale projects to task assignments that got started recently, approaching WIP strategically is a key part of any manager’s job.
This guide will explain what work in progress means–in accounting, manufacturing, and more. it also lists down best practices so you can set up an organized system and manage it more effectively.
What is a work in progress?
Work in progress (WIP) is any product, process, or task that has already been started but isn’t finished yet. It’s right in the middle of your workflow, between “To Do” and “Done”:
It’s used widely across different industries, from partially assembled goods on a factory floor to an inspection form that’s been opened but not submitted. In accounting, it also means goods that are still being produced, which are listed as assets on a balance sheet.
WIP is a constant part of any business–but it requires proper management and tracking to avoid delays and hidden costs.
Types of work in progress (WIP)
Here are some examples of how WIP might manifest in a company:
- Manufacturing – Unfinished goods. These are physical goods that are still in production, such as items waiting for inspection or products still on the line. You’ll often track these as inventory, and they affect scheduling as well as costing.
- Software – Features or tickets in progress. In software teams, WIP usually refers to development tasks that have been started but aren’t shipped yet. This could be a feature in the middle of coding, a bug fix waiting for QA, or a user story that’s still being scoped.
- Creative – Drafts and iterations. In design, marketing, or content teams, WIP includes anything that’s mid-production or still being reviewed. Drafts of blog posts or mockups in Figma that haven’t been finalized all count. Because creative work often moves in cycles, it’s easy for WIP to pile up.
- Service – Ongoing client requests. In service industries, WIP covers active work on customer issues or requests, like open support tickets or pending maintenance jobs. This needs thorough tracking so no request gets missed and teams can prioritize based on urgency or status.
Work in progress in finance
Work in progress is also an important term in accounting and finance. These are partially completed goods that are a key part of inventory accounting, especially in manufacturing or construction. In these industries, projects have to go through several stages before they’re finished.
WIP is recorded on the balance sheet as an asset, alongside raw materials and finished goods. It represents costs that are already incurred on items that aren’t yet ready to sell. Because these items have value, but aren’t generating revenue yet, you’ll track them separately until they’re completed and can move to finished inventory.
A financial WIP would typically include:
- Direct materials already used
- Labor costs for work done so far
- Allocated overhead (indirect costs) tied to production
For example, if a company is building 100 units of a product and 40 are halfway done, you’d record the costs tied to those in-progress units as WIP. If WIP is too high, it might mean there are problems in production–the workflow might be getting stuck somewhere, or resources are being used too inefficiently. But then if it’s too low, it could mean underutilized capacity.
Easily confused terms with WIP
It’s easy to confuse “work in progress” with similar terms that are also often used organizationally:
Work in progress vs. work in process
These two terms are actually almost used identically–and sometimes they’re even interchangeable! But they do have subtle differences.
Work in progress (WIP) is more commonly used in industries like construction, creative work, and services—where the “product” might be a project or report still being completed.
Work in process shows up more in manufacturing, where it refers specifically to goods moving through a standardized production line. It also often implies short-term production, within a faster timeframe.
Work in progress vs. backlog
A backlog is work that needs to be done—but hasn’t been started yet. It’s still waiting in the queue for someone to pick it up.
On the other hand, WIP is work that has already been started. A task leaves the backlog and then becomes a WIP once it enters your active process. Clearly separating your backlog and your WIP is crucial for effective workflow management.
Work in progress vs. work order
A work order is a request to perform a specific task—like an equipment repair, maintenance check, or custom job. It’s the instruction or assignment that tells you what you need to do.
Once you start working on it, the task becomes WIP. As soon as a technician starts the repair, the job moves from “assigned” to “work in progress.” A work order can contain WIP, but the two aren’t the same.
The impact of managing work in progress
Work in progress is a normal part of any workflow, but it’s also prone to causing miscommunication and slowdowns. These are some risks to not managing WIP effectively:
- Unclear ownership. WIP can often fall into this in-between area where ownership and responsibility become unclear. Without proper tracking and management, WIP tasks can get stuck in limbo, with team members unsure of who is supposed to be working on what, or where a particular task currently stands.
- Delays and multitasking overload. If WIPs get too chaotic, team members are forced to constantly switch between them, which fragments attention and makes it harder to maintain focus. This can lead to mistakes, burnout, and reduced quality of work.
- Hidden costs. Every unfinished task has a cost—whether it’s tied-up materials or hours already spent. In manufacturing or construction, high WIP levels can also distort inventory values and delay when a company can report revenue.
With a proper tracking and management system, you can streamline your WIPs and even spot slowdowns early, so you can fix anything in your process that isn’t working.
How to track work in progress
To monitor work in progress effectively, start with status clarity. What counts as “in progress”–is it when someone picks up a task or when materials are pulled?
Once you know when something enters WIP, the next step is to use visual tools. There are many options for these, but what they have in common is organizing tasks into clear stages, like:
To Do → In Progress → Blocked → Done
You might use Kanban boards, digital checklists on Lumiform, or mobile dashboards to make it easy to see what’s being worked on, who’s responsible, and how long something has been in one stage. At Lumiform, we’ve curated these work in progress templates to help you get started.
All throughout, track useful WIP metrics, like:
- Number of tasks currently in progress
- Average time spent in WIP
- Blocked or overdue items
- Completion rates per team or location
These serve as feedback loops so you can manage capacity and improve how work moves through your system.
Best practices for managing work in progress
No matter the industry, most workflow issues tend to show up in the same place: the “in progress” stage. But here are a few best practices that can make a big difference.
Set clear WIP limits
The more tasks one person or team is juggling at once, the more likely something gets dropped. Set WIP limits to prevent overload. For example, you might limit the number of jobs assigned or the number of open forms in a checklist flow.
After all, people have a limited capacity for much information they can juggle at once before their performance starts to suffer. There’s also the Zeigarnik effect, where people naturally remember incomplete tasks better than completed ones, which leads to less focus.
Standardize your workflows
One of the most straightforward ways to manage WIP is by making sure everyone follows consistent processes. That means using defined steps and clear task instructions.
Lumiform’s software helps you automate your workflows, with reusable checklists and inspection forms. You can assign tasks, add instructions, and make follow-ups easy—so once a task is in motion, it follows a predictable path.
It also allows for mobile access and gives you a dashboard with your analytics, keeping everyone on the same page. This speeds up the process, reduces errors, and allows you to track where each task stands.
Review stalled items regularly
Even in the best workflows, tasks can still get stuck. Build in time to review anything that’s been “in progress” for longer than expected. With these quick check-ins, you can spot and clear blockers early and make space for higher-priority tasks.
You can use flags or alerts to mark items that have been inactive for too long, or even conduct weekly reviews or status audits. If the same kinds of tasks keep stalling, it’s also a sign–maybe a step is too vague, or a certain role doesn’t have enough capacity.
Create feedback loops
Feedback loops can be formal, like a quick retrospective at the end of a job, or informal, like a team check-in when you notice a pattern. Either way, you can ask these questions:
- Where are we consistently getting stuck?
- Are we starting too many things at once?
- Are handoffs working, or are they where the process falls apart?
Small insights from these reviews often lead to big process wins. For example, if it turns out design specs are unclear, you can implement stronger requirements and improve handoff.
Work in progress can be tricky to manage, especially as it grows in scope, but by implementing these best practices, you can have better control of WIP. This drives efficiency so you can deliver better results, all across your organization.