How should we book prepaid packages and memberships?

As deferred revenue, recognized session by session as clients redeem them — with the unredeemed balance tracked as a liability on your balance sheet, not as income you’ve already earned.

Can you help structure injector compensation?

Yes — we build commission structures around net margin (service revenue less product cost), so injector pay reflects what a procedure actually earns the practice, not just gross revenue.

Do you track product inventory separately from services?

Yes. Injectables and retail skincare get their own cost tracking — including shrinkage and expiration — so service margin and product margin are both visible, not blended together.

We’re opening a second location. What changes?

We build location-level reporting from the start, so each spa’s revenue, injector costs, and margin are visible on their own — not averaged into a single number that hides which one is actually profitable.

Cash-Pay Medical → Medical Spas

Accounting for Medical Spa Practices.

Medical spas run on packages, not single visits — sessions sold upfront, earned month by month, not the day they're purchased. Most bookkeeping never tracks that as a real liability. Add injector commissions, inventory, and often multiple locations, and it gets complicated fast. We recognize package revenue as it's delivered, and track injector pay against true margin, not gross revenue.

Book a discovery call See med-spa-specific problems

Medical spa esthetician performing a facial treatment

Where med spa accounting goes wrong

The problems specific to this model.

Package revenue recognized on sale, not delivery

A $2,000 package of six laser sessions isn’t $2,000 of revenue the day it’s purchased. It’s earned as each session is delivered — booked wrong, revenue is overstated up front and your true liability (sessions owed) goes untracked.

Injector compensation tied to revenue that isn’t clean

Commission-based injector pay calculated off gross service revenue, without separating product cost, overstates true margin and can overpay injectors on procedures that barely break even.

Product inventory blended with service revenue

Injectables and retail skincare carry real COGS that a service-based chart of accounts wasn’t built to track — margins look healthy until inventory shrinkage or expired product shows up as a surprise write-off.

Multi-location margins that don’t compare

Each location has a different service mix, injector roster, and lease — rolled into one P&L, you can’t tell which location is actually profitable.

How we help

What that looks like in practice.

Package revenue recognized per session delivered

Deferred revenue tracked at the package level, recognized as each session is used — with the unearned liability visible on your balance sheet.

Injector comp calculated on true margin

Commission structures built on service revenue net of product cost, so injector pay reflects what a procedure actually nets the practice.

Inventory tracked separately from services

Product costs, shrinkage, and expiration tracked in their own chart of accounts, so service margin and product margin are both visible — not blended into one number.