Every December, medical spas see a surge in sales. The phones don’t stop ringing, the treatment rooms stay full, and gift cards fly off the shelves. For owners, it’s a delicate balance between showing appreciation and keeping enough cash on hand to start the new year strong.
Dear Dangerously in Love with Finance,
December is starting to get intense. I own an aesthetic medical practice, and we’ve already brought in around $280,000 in revenue this month. My staff is exhausted from back-to-back appointments and holiday stress. I want to give them bonuses because they’ve earned it, and I don’t want to lose anyone to burnout. But I’m cautious.
A lot of that $280,000 came from gift cards people bought for the holidays, and I know January and February will be packed with redemptions. How do I know if I can afford the bonuses without putting pressure on cash flow when those gift cards start getting used?
Signed,
—Burned Out Boss
Dear Burned Out Boss,
Your instinct to reward your team is right, and your awareness about the money is even better. That $280,000 can be misleading. It looks like available cash, but much of it represents services you haven’t yet delivered. When your medical spa sells gift cards, that money becomes deferred revenue. It’s considered a liability until those treatments are performed.
The cash is sitting in your account, but it’s not profit yet.
How Deferred Revenue Impacts Cash Flow Management
Before you hand out bonuses, you need to separate what’s truly earned from what’s still owed.
How much of that $280,000 came from completed services? And how much came from prepaid packages or gift cards?
If $150,000 of it came from gift cards, that portion needs to stay in your account. You’ll need it to cover January payroll, product orders, and treatment costs when clients redeem them.
Planning Bonuses Without Hurting Your January Cash Flow
Start by calculating your actual earned revenue for December and then project your January expenses, especially payroll. Once you know those numbers, you’ll see what’s safe to use for bonuses.
This is what strong cash flow management for aesthetic practices looks like.
It means knowing when money is truly available to spend and when it’s still committed to future services.
Leading With Financial Clarity and Confidence
Your team earned those bonuses, but timing matters. Cash flow management for medical spas is about understanding when cash is available and when it needs to stay put. You can absolutely reward your staff. Just make sure you have a plan that keeps your business strong through January and beyond.
Run your numbers. Check your revenue mix. Forecast your January obligations. Then make your decision with clarity. That’s what real financial leadership looks like: grounded, informed, and built to last.
Lots of Love, Coffee and Chocolate,
Dangerously in Love with Finance
Mindful Thoughts
You’re looking at $280K and seeing abundance, and that’s real. But that money is also a promise to deliver something in January. The kindest thing you can do for your burned-out team is to understand what you truly have to give so you can care for them without creating new stress.
If you want to reward your team without worrying about how you’ll cover January’s bills, specialized fractional CFO services for medical spas can give you the clarity you need.
You deserve to celebrate your success with confidence, not caution.
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This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at info@healthybodiesoffinance.com