Accounting Built for
How Med Spas Actually Run
Industry-specific accounting for medical spas, structured to improve financial visibility and support strategic growth.
Med spa revenue is complicated. Generic bookkeeping does not keep up.
A med spa is not a standard service business. You have treatment revenue, retail sales, membership income, prepaid packages, and injectable supply costs that vary by treatment. Most bookkeepers lump it all together and call it a day.
When revenue streams are not tracked separately, you lose visibility into what is actually profitable and what is not.
- No clear split between services and retail on the P&L
- Injectable costs not matched to the treatments that used them
- Prepaid packages and gift cards recorded as revenue when sold
- Provider comp tracked incorrectly, making margins look wrong
- No reliable numbers to evaluate adding a provider or a new service
Your books should reflect how your business actually works.
We set up your chart of accounts to match how a med spa generates revenue and incurs costs. Treatments, retail, injectables, and provider comp are tracked in a way that produces a P&L you can actually use.
When your financials are structured correctly, you can see margin by revenue stream, understand what a new provider adds to the bottom line, and hand clean numbers to your accountant or lender without a cleanup project first.
Accounting structured around how a med spa runs
Every item below is something generic bookkeepers get wrong. We get it right from the start.
Monthly Bookkeeping
Every account reconciled each month. Transactions categorized correctly, books closed on time. No backlog, no scramble at year-end.
Revenue Stream Separation
Treatment revenue, retail product sales, memberships, and prepaid packages tracked as separate lines so your P&L tells the full story.
Cost of Goods for Injectables
Botox, fillers, and other injectables tracked as cost of goods, not miscellaneous expenses, so your service margins are accurate.
Package and Gift Card Liability
Prepaid packages and gift cards recorded as liabilities until services are delivered, so your revenue is recognized when it is actually earned.
Provider Payroll and Compensation
Provider comp tracked correctly whether salaried, hourly, or commission-based, so labor costs flow to the right place on your financials.
Most med spas have three distinct revenue streams
Each one has different margins and different accounting treatment. Lumping them together hides what is actually driving your business.
Treatment Services
Injectables, laser treatments, facials, and body services. Tracked against injectable and supply costs to show true service margin. This is usually your highest-margin line.
Retail Product Sales
Skincare products, supplements, and take-home items. Tracked against product cost of goods separately from services. Margins here are typically lower and need their own visibility.
Memberships and Packages
Monthly membership fees and prepaid service bundles. Recognized as revenue only when services are delivered, not when cash is collected. Requires a deferred revenue liability account.
The accounting varies by how your providers are paid
Most med spas have a mix of providers: W-2 employees, 1099 contractors, or both. Each one is accounted for differently, and getting it wrong distorts your margins and creates problems at tax time.
We make sure provider compensation flows to the right accounts based on how each person is actually engaged, so your financials reflect real labor costs.
Employed Providers
Wages, employer payroll taxes, and benefits tracked as separate labor cost line items. Integrated with payroll so nothing falls through the gap between payroll and the books.
Independent Contractors
Contractor payments tracked as a distinct expense category. Annual 1099 filings supported. No mixing of contractor costs into employee payroll lines.
Commission-Based Pay
Commission structures calculated and recorded against the revenue they generated, giving you a clearer picture of net margin per provider or per service type.
For med spa owners who want financials that actually make sense
Whether you are a single-provider practice or a multi-room operation, the accounting needs are specific. A general bookkeeper who has never seen a med spa P&L will not set this up correctly.
- New med spas that want clean books from day one
- Established practices where the books have never been structured correctly
- Owners adding providers or services who need better visibility into margins
- Med spas preparing for a loan or evaluating a second location
- Owners whose current bookkeeper has no experience with aesthetics businesses
Also Worth Knowing
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A free consultation to walk through your current setup and show you how we would structure it differently.
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