The medical spa industry is booming. Appointments are booked, and revenue is up… so why does cash feel tight, profits feel inconsistent, and decision-making feel unsure?
Your numbers are supposed to guide you, but you’re out of luck if they’re not current, accurate, and easy to decipher. You’re not ready for an in-house accountant, so what do you do? Outsource monthly accounting for year-round insights.
CSI Accounting & Payroll has provided monthly accounting services to the salon and spa industry and many niche industries for 60 years. We understand your challenges and how to overcome them. In this article, I’ll address:
- What is monthly accounting?
- How does monthly accounting help competitive industries, like med spas?
- Is my med spa a good candidate for monthly accounting?
What Is Monthly Accounting?
The easiest way to describe monthly accounting is to say it’s a bookkeeping, tax, and consulting service all in one. (If you want to outsource these services anyway, monthly accounting is objectively a much better deal.)
So, with monthly accounting, you always know what’s happening with your finances, and you see the trends of what’s coming next.
But it’s more than that. Because monthly accounting is a hands-on, year-round service normally offered by small providers, you also get these benefits that the other services can’t provide:
- A dedicated expert with longevity in the company. Lower turnover means this professional has more time to really get to know you and your business.
- Long-term tax strategy. This can span over months or even year-over-year for maximum benefit, which is very different from an annual tax preparer just recording your financial data.
- Monthly financial statements. (Okay, some bookkeeping services may provide these. However, those don’t include having your dedicated expert break down what your numbers mean.)
How Monthly Accounting Helps Med Spas
You know what monthly accounting is, but how is it specifically beneficial to the medical spa industry?
First, let’s focus on your industry’s rapid growth. Because of the increased client base and increased competition, you’re facing these unique challenges:
- Higher marketing costs. As your market becomes more saturated with competitors, you need to stand out. Expect to pay more for advertising, time spent managing social media and your website, or outsourcing marketing strategies.
- Expanding service offerings. If you’re not the one-stop shop for facials, filler, Botox, and the latest med spa trends, your customers will go to a competitor who offers everything they’re looking for. Expect higher inventory and payroll costs.
- Increased hiring and payroll costs. To provide more services and handle more things in-house, you need to hire more staff. If payroll wasn’t already your largest expense, it likely will be as you grow.
It’s not all challenges. You can also expect higher revenue. But you can’t balance everything and turn it to profit if you don’t know your numbers beyond just looking at your bank accounts and tax returns.
That’s where monthly accounting comes in handy for the med spa industry. With the accurate, current numbers and insights it provides, you’ll be able to track and improve your:
- Cash flow and other trends.
- Profitability of each treatment.
- Efficiency and productivity of each provider.
- Retail margins.
- And other KPIs.
Monthly accounting is a key aspect of running a mature business. But how do you know if that applies to you? The next section will cover whether or not monthly accounting is the right fit for your med spa.
Does Your Med Spa Need Monthly Accounting?
Is your med spa ready for monthly accounting services? It depends. It’s time to consider monthly accounting if any of the following are true:
- Your bookkeeping is becoming too time-consuming or too confusing to handle in-house.
- You don’t fully trust your numbers.
- You need professional insights beyond one conversation at tax time.
- You have no idea what your tax liability will be, and you’re not doing anything to minimize it.
- You’re wasting money by outsourcing multiple other financial services.
Different levels of experience mean different levels of accounting solutions, such as:
- Startups and very small businesses often fully DIY or partially outsource. They may not have the capital or business activity yet to justify a strategic accounting method. The most common example is when a staff member handles bookkeeping on the side, and you outsource tax filing to an annual tax preparer.
- Small and midsized businesses aim for monthly accounting. As you grow in revenue and activity, you can (and should) expand your investment to a more comprehensive and accurate accounting experience.
- Large businesses hire an in-house accountant or an accounting team. This allows them to have full control if they don’t want to outsource.
Not sure which is best for you? Try this free quiz and get your answer within minutes!
Know Your Med Spa’s Numbers!
Now that you know what monthly accounting is, how it helps med spas, and whether your med spa is a good fit for it, are you ready to see if CSI can be the right provider?
If so, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about what your monthly investment may look like.
