A Chart of Accounts Built for a Med Spa

Your chart of accounts decides what your financial reports can tell you. If revenue is a single "Sales" line and product is a single "Supplies" line, no report can show profit by service. A med spa needs a structure built around how the business really earns money.

Revenue by service line

Create separate income accounts for your main service lines, for example:

• Neuromodulators
• Dermal fillers
• Laser and energy treatments
• Skin treatments, facials and peels
• Body treatments
• Retail products
• Membership dues earned

Keep discounts and refunds visible, either as separate contra-revenue accounts or as a consistent part of each line.

Cost of services by matching category

Mirror the revenue lines with product cost accounts:

• Neuromodulator product
• Filler product
• Device consumables and tips
• Skin treatment supplies
• Retail cost of goods sold

Matching categories let you calculate gross margin for each service line.

Payroll split by role

• Provider wages and commission
• Support staff wages: front desk, coordinators, managers
• Payroll taxes and benefits, ideally split the same way

This shows how much of payroll scales with treatments and how much is overhead.

Liability accounts for prepaid services

• Deferred revenue for packages
• Prepaid membership credits
• Gift card liability
• Client deposits
• Sales tax payable

These keep cash collected for future services off your income statement until earned.

Operating expenses that make decisions easier

Group overhead into meaningful buckets: rent and occupancy, marketing, software and technology, equipment leases and maintenance, professional fees, insurance, merchant and financing fees, and training and licensing.

Keep it simple

More accounts are not always better. Aim for a structure that answers your key questions in a monthly review. Agree it with your bookkeeper or CPA, map your POS categories to it, and resist adding new accounts without a reason.