Industries

How much could you release this month without winning any new work?

Lock-up is work you have delivered but not invoiced, plus work you have invoiced but not collected. Most firms measure the second half and never the first, because unbilled time sits in a time recording system rather than on a balance sheet.

Agencies, consultancies, accountancy and law firms

What goes wrong

The WIP half is invisible

Every lock-up calculator asks for a work in progress figure, which is the one number a small firm cannot produce. It exists as unbilled hours in a system, not as a balance.

Chasing harder does not fix a billing lag

If more is stuck before the invoice goes out than after it, credit control is the wrong lever. Most firms reach for it anyway because debtors are the half they can see.

Client concentration hides in the locked up cash

One client can account for a third of everything tied up, which is a concentration risk as well as a cash problem, and it does not show in a revenue report.

The wrong person does the reporting

A partner on a high hourly rate rebuilding a spreadsheet costs considerably more than the same work done further down. Nobody calculates it because the time is not billed.

Being scoped

Practice Cash Manager

  • Lock-up split into work in progress and debtors, kept current
  • Which jobs to bill this week, ranked by what each releases
  • Which invoices to chase, with statutory interest calculated
  • Client concentration in the locked up cash
  • Connected to your time recording rather than typed in twice
How many people ask decides what we build next.