Debtors and Work in Progress Lock Up otherwise known as Lock Up is the amount of days taken to convert your WIP and your Debtors / Receivables into Cash.

It is calculated by combining the two measurements:
 

Debtors / Receviables (money owed to you)

http://www.mcnamaraandcompany.com.au/blog/the-importance-of-having-good-control-of-your-debtors

To improve Debtors / Receivables you could:

•      Have clear terms of trade.
•      Make Payments easier.
•      Issue statements property on overdue accounts.
•      Issue letters / followed by phone call advising the client / customer of the overdue account.

Work In Progress (WIP)

http://www.mcnamaraandcompany.com.au/blog/what-is-the-financial-measurement-work-in-progress-wip-days-or-stock-days-and-how-is-it-calculated

To improve your WIP you could:

•      Communicate to the client / customer what is required to complete the task / engagement.
•      Issue interim accounts.
•      Issue invoices promptly at the end of the engagement.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

Please refer to disclaimer at the bottom of the page.