Unbilled Project Costs and WIP Leakage
Definition
Tech firms must track billable cloud costs separately for T&M contracts; failure results in revenue leakage from unallocated project expenses.
Key Findings
- Financial Impact: AUD 300-500/month cloud costs per 10-person team if unbilled; typical 2-5% revenue leakage from WIP errors[1]
- Frequency: Per project/billing cycle
- Root Cause: Lack of specialised project costing charts and manual expense allocation
Why This Matters
The Pitch: IT System Custom Software firms in Australia lose 2-5% project revenue from unbilled cloud/WIP costs. Automation of cost allocation and milestone billing captures full reimbursables.
Affected Stakeholders
Bookkeepers, Project Leads, Finance Team
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Delayed Accounts Receivable Collections
GST and Superannuation Non-Compliance in Billing
Manual Billing Process Overheads
Unbilled Testing Services
Rework from Testing Defects
Overtime in Manual Testing
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