Multi-Entity & MSA Accounting
Bookkeeping and accounting built for med spas and medical businesses that operate through management service agreements and sponsoring physician arrangements. Hunter Green CPA keeps separate, clean books for the clinical and management entities, handles the intercompany activity, and keeps your records aligned with how your business is actually structured.
The Structure
In many states, a non-physician cannot directly own a med spa or aesthetic clinic that delivers medical treatments. So you work through a management service agreement with a sponsoring physician or a physician-owned clinical entity. Your management company handles the business operations. The physician’s entity handles the medical side. Revenue flows through the clinical entity, and a management fee flows to your company for running the operation.
This is the reality for thousands of med spas across the country. It is legal. It is common. But it means you are running two separate businesses on paper. Two entities, two bank accounts, two sets of financial records. Each one needs to be accurate on its own, and they need to line up with each other and with the terms of your MSA.
The Clinical Entity
The Clinical Entity
The physician-owned practice. Patient revenue comes in here. Clinical payroll and medical supplies are expenses. The management fee to your company is the main outflow. The books need to show a medical practice that receives services from a management company.
The Management Company
The Management Company
Your business. The management fee is your revenue. Staff payroll, rent, marketing, equipment, and operations are your expenses. The books need to show a services company being compensated for running a medical practice.
Two Sets of Books
Both entities need complete, separate accounting. The clinical entity has its own chart of accounts, its own bank reconciliation, its own profit and loss statement. Your management company has the same. You cannot combine them into one set of books and assume it all works out.
The transactions between the two entities add a layer of complexity. The management fee is the biggest one, but there are others. Shared expenses. Equipment purchases. Supply costs. Provider compensation that spans both sides. How these are recorded determines whether your financial records actually support the structure your attorney created.
Separate Books for Each Entity
Separate Books for Each Entity
Every transaction categorized to the right company. Every bank account reconciled under the correct entity. Every expense recorded exactly where it belongs in your structure.
Intercompany Transactions
Intercompany Transactions
Management fees, expense allocations, and any other amounts flowing between entities. Recorded on both sides, at the right amounts, in the right periods, consistent with your MSA. If the numbers on one side do not match the other, something is wrong.
The Accounting
Hunter Green CPA maintains the books for both entities in your structure. We categorize transactions correctly, reconcile accounts, and record intercompany activity according to your agreement. Each month you get financial statements that show both businesses clearly, and the numbers tie together the way they should.
We handle the accounting and bookkeeping side of your MSA structure. Legal advice on corporate practice of medicine rules and MSA drafting comes from your attorney, and we coordinate with them directly when they need financial documentation or have questions about how the numbers are flowing. If you are running a med spa with an MSA structure and want to talk through how we would handle your books, reach out for a consultation.
Records That Hold Up
Records That Hold Up
Financial statements clean enough for your attorney to review, your sponsoring physician to sign off on, or a buyer to examine if you ever sell. The kind of records that make everyone’s job easier and that you are comfortable handing over.
Built on Full-Service Bookkeeping
Built on Full-Service Bookkeeping
This work layers onto our Full-Service Bookkeeping, with added attention to entity separation and intercompany entries. For med spas with product inventory, we pair it with Inventory and Cost Tracking. And our Tax Strategy work plans across both entities to find the real opportunities.
Your Trusted CPA
Next Step:
A Short Conversation
Tell us about your business and what you need help with. We'll ask a few questions, explain how we can help, and tell you exactly what it will cost.