DRE: what it is and how a facial harmonization clinic can read it
Quick facts
- Acronym
- Brazilian income statement for the period.
- What it is for
- Showing, over a period, how much the clinic billed, how much it spent, and how much was left.
- Basic structure
- Revenue, deductions, variable costs, fixed expenses, and result.
- Difference from cash flow
- The DRE shows the result for the period; cash flow shows money coming in and going out.
- Caution
- Support from an accountant or consultant to format and interpret it.
DRE is the Brazilian acronym for the income statement. It is a financial report that organizes, over a period (usually the month), everything the clinic billed and everything it spent to arrive at the result: profit or loss. For those who work in facial harmonization, it is the tool that answers the question "does my price actually cover what I spend?"
How is the DRE organized?
From top to bottom, the calculation usually follows this order:
| Line | What goes in |
|---|---|
| Gross revenue | Everything sold in the period |
| (-) Deductions | Taxes on sales and cancellations |
| (-) Variable costs | Supplies, disposables, and card terminal fees |
| = Contribution margin | What is left to pay fixed costs, the basis of the contribution margin |
| (-) Fixed expenses | Rent, staff, accountant, marketing |
| = Result | Profit or loss for the period |
How do you use it in pricing decisions?
With the DRE, it becomes clear how much each procedure needs to earn to pay for costs and the clinic hour. This supports setting the price per ml, the discount that fits a campaign, and the markup applied to supplies. It also shows whether the average ticket is paying for the clinic's structure.
The DRE is not cash
An installment sale enters the DRE's revenue in full, but the money arrives gradually. That is why the DRE needs to go hand in hand with cash control. The difference is explained in cash vs. accrual accounting.
In Harmy
Harmy generates PDF quotes with price per ml, discount, and validity, and stores the price table. It does not do accounting or calculate the clinic's DRE.
Also called: statement of results.
Frequently asked questions
Are the DRE and cash flow the same thing?
No. The DRE shows whether the period produced a profit or a loss, generally on an accrual basis. Cash flow shows when money actually came in and went out, and it can be quite different.
Do I need a DRE for a small clinic?
A simple version already helps you know whether the price you charge covers costs and leaves a profit. The format and accounting obligations depend on size and tax regime, and it is worth talking to your accountant.