WIP in a Consultancy Partnership
I work for a Project management company (a ltd partnership) which has been informed that we could account for WIP in our Balance Sheet. There are no salaries in the company only the main partner who receives drawings each month. It would be his cost that we would transfer to WIP if viable. The other alternative I have seen is to to not account for WIP, but instead merely accrue unbilled hours completed but not yet billed on projects. Can anyone advise?