Accounting for salons, spas & gyms
Packages sold today, services delivered over months, commissions on top and cash in the till — wellness businesses carry more deferred income and more leakage points than owners realise.
Wellness-business issues we handle
- Memberships and prepaid packages deferred and released as redeemed
- Stylist and therapist commissions computed from actual POS services
- Daily cash takings reconciled to POS and bank deposits
- Retail product vs service revenue split for honest margins
- Refunds, freezes and package cancellations handled cleanly
- Expired-package breakage recognised under a consistent policy
Deferred income is a liability, not a bonus
A big package-sales month feels great until the sessions must be delivered with no matching cash left. We hold packages as deferred income and release revenue as sessions are redeemed — so the P&L shows earning, not selling, and the VAT lands at the right tax point (usually upfront at payment, which surprises many owners).
Commission schemes get a monthly working per staff member straight from POS service data — ending the month-end disputes for good.
FAQs
How should prepaid packages be booked?
As deferred income at sale, recognised as each session is redeemed. Unredeemed balances are a liability, and expired-package breakage needs a documented, consistently applied policy.
When is VAT due on a package sale?
Generally at the earlier of invoice or payment — usually upfront on the full package — even though revenue is recognised over months. Cash intuition gets this wrong.
Can you manage staff commissions?
Yes — computed monthly from POS service records against each agreed scheme, with a transparent per-staff working paper.
How do you control cash-heavy takings?
Daily Z-reports tied to till counts and bank deposits, with variances logged and investigated weekly — small consistent shortages are found early instead of annually.
Run the numbers with people who know your industry
Free consultation. Bring your latest P&L — or your shoebox of invoices. Both are fine.