Generating the year-end financial report with software

What the report must contain by law

Article 1130-bis of the Italian Civil Code, introduced by Law 220/2012, provides that the condominium financial report contains the items of income and expense and every other datum relating to the condominium's patrimonial situation, available funds and any reserves, expressed so as to allow immediate verification. The report is made up of three documents: the accounting register, the financial summary and an explanatory synthetic note on the management, including ongoing relations and pending matters.

The rationale of the provision is transparency: the owners must be able to check how the common money was managed. For this reason the report adopts a mixed system, cash and accrual, that holds together actual movements and the credits and debits accrued but not yet collected or paid. A report that ignores accrual, showing only cash, does not respect the required structure.

The accounting register

The accounting register is the chronological record of income and expense movements, with date and amount. It is the factual basis of the whole report: every payment by the owners, every payment to a supplier, every transfer between financial resources is recorded here in time order.

In a management system the register is not a document to compile at year-end but the result of daily activity: each time an inflow or an expense is recorded, the movement enters the register. At the close of the year the register is already complete and consistent with the cash and bank balances, without having to reconcile the entries with the statements by hand.

The financial summary and the patrimonial situation

The financial summary represents, on an accrual basis, the condominium's patrimonial situation: credits and debits, including those relating to earlier managements, available funds and reserves. It is the snapshot of the situation at the end of the year, showing how much the condominium still has to collect from defaulters, how much it still has to pay suppliers and which funds it holds.

The software builds this summary by combining the recorded movements with the positions of the individual owners and the balances of the financial resources. The consistency between financial summary, accounting register and allocation plan is what makes the report verifiable: the three views of the same management must tell the same story.

• Credits from defaulting owners at the end of the year
• Debts to suppliers not yet settled
• Available funds and reserves set up by the meeting
• Cash and bank balances reconciled with the movements

The explanatory synthetic note

The explanatory synthetic note is the narrative part of the report: it sets out the salient features of the management, ongoing relations and pending matters. It serves to explain what the numbers alone do not say, for example ongoing litigation, a supplier whose position is not closed, a fund set up for a future works.

A management system can pre-fill part of the note from the data (for example the list of open credits and debits), but the commentary remains the manager's responsibility, as they know the context of the management. The value of the software here is to provide, in an orderly way, the information the note is based on, so that no open position is forgotten.

Why automatic generation reduces errors

Drafting the report by hand at year-end means reconstructing twelve months of movements from statements and receipts, with a high risk of omissions and figures that do not square. A management system, fed during the year, produces the three documents consistently because they all derive from the same already recorded movements. The squaring between register, summary and allocation is guaranteed by construction.

In AmministraPro the year-end report is generated from the day-book movements and the owner positions recorded during the year, producing an accounting register, a financial summary and a basis for the synthetic note that are consistent with one another. The accounting and reporting features are described on the /funzioni page, while the plans by management volume can be compared on the /prezzi page.

Frequently asked questions