Why Your MedSpa Feels Cash-Strapped Even When Revenue Looks Strong
In my work as an outsourced CFO, I speak with medspa owners every month who are doing everything right on paper. Busy schedules, strong monthly revenue, great patient demand, yet still feel constant pressure around cash.
The conversation usually starts the same way:
“My P&L says we’re profitable, so why does it always feel like I’m waiting on deposits to hit before payroll?”
If that sounds familiar, you are not alone. This disconnect between profitability and cash flow is one of the most common and most misunderstood financial challenges in medspas.
Until this gap is understood, growth often increases cash stress instead of relieving it.
Profit vs. Cash Flow in a MedSpa
Profit is an accounting concept.
Cash is what is actually in your bank account.
Your Profit and Loss statement may show healthy margins, but that does not mean cash is available when you need it. Timing and structure matter, especially in medspas.
Two things commonly cause profit and cash to move out of sync:
Timing of cash in versus cash out
Expenses that do not show up clearly on the P&L
A Common MedSpa Example
You sell a $3,000 laser package and recognize the revenue today. The cash is collected over six monthly payments.
Meanwhile, rent, payroll, and injector commissions still need to be paid now.
The revenue is real.
The cash is not.
This timing gap is structural, not a failure. But it must be understood to manage growth effectively.
What Changes When You Understand Cash Timing
Medspas that understand the difference between profit and cash stop making decisions based on assumptions.
They plan around when cash will arrive and when it will leave. Growth becomes more predictable. Financial decisions feel calmer and more intentional.
Profit still matters. Cash stops being a constant source of uncertainty.
