How should unfinished work be reflected in my accounts?

Unfinished work may need recognition in your accounts even if the customer has not been invoiced. The treatment depends on the contract, work completed and accounting basis. Invoice dates alone do not always show when income or costs belong in the results.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

Keep job records current

Track the work completed, costs incurred, amounts invoiced and what remains to be done. Reliable project records make the period-end assessment much easier.

Check the contract

Milestones, customer acceptance and rights to payment can affect the treatment. Work in progress and income earned but not yet billed are related ideas, but are not always the same accounting entry.

Use the correct basis

The applicable accounting framework determines how revenue and costs are recognised. A sole trader using cash basis can have a different treatment from a company preparing accrual accounts.

Review before reporting

Give CASS contract details and job updates before the accounts are finalised. Avoid adding an estimated profit figure without evidence or recognising the same income twice.