Practical guide
Condominium cash journal: an operating guide to recording
The cash journal (prima nota) is the register where the manager records, in chronological order, every income and every expense of the condominium, with date, amount, description and reference to the document. It is the heart of the accounting register required by Article 1130, number 7, and Article 1130-bis of the Italian Civil Code, which shapes a mixed cash-accrual report. Keeping it updated and aligned with the current account is the condition for a verifiable report and for responding to owners' access requests. This guide explains, in operating terms, what to record, when and with which data.
What the cash journal is and what it is for
The cash journal is the chronological recording of financial movements: when an instalment comes in, when an invoice is paid, when money is withdrawn or deposited at the bank. Each line represents a fact that actually happened on the condominium's accounts and is the basis from which the annual report is built.
It should not be confused with the report: the cash journal records facts day by day, the report summarises and reclassifies them at year-end. Without a tidy cash journal, the report becomes imprecise and hard to justify in the event of a dispute.
What to write in each entry
Each movement must show at least the date of the transaction, the description, the amount with the correct income or expense sign, the account involved, cash or bank, and the reference to the supporting document, such as the invoice or receipt. It is good practice to also indicate the condominium or management to which the movement refers.
A clear description is essential: writing only payment is not enough, better to state the supplier and the nature of the expense. At report time, a well-described cash journal reclassifies in a few minutes; a vague one forces you to reconstruct the movements one by one.
- Actual date of the transaction on the account
- Clear description with supplier and nature of the movement
- Amount with the correct sign and cash or bank account
- Reference to the supporting document
When to record: the timeliness rule
The cash journal must be kept updated regularly, ideally recording movements as they happen or at a fixed, close cadence. Accumulating weeks of movements to enter increases the risk of errors, omissions and misalignments with the current account.
An effective practice is to link the recording to the arrival of the document: when you pay an invoice you record it at once, when you collect an instalment you record it on receipt. This way the cash journal remains a faithful mirror of the accounts at any moment of the year.
Frequent mistakes to avoid
The most common mistakes are double-recording the same movement, omitting small expenses paid in cash, using generic descriptions and confusing ordinary management with the works fund. Each of these mistakes translates into a report that does not match the account balance.
Another mistake is not distinguishing accruals: a year-end payment that covers expenses of the following year should be recorded as a financial movement, but correctly reclassified by accrual in the summary, consistently with the logic of Article 1130-bis of the Italian Civil Code.
- Double entries of the same movement
- Cash expenses not recorded
- Generic descriptions not traceable to a document
- Confusion between ordinary management and separate funds
From the cash journal to the report
At year-end the cash journal, reconciled with the bank statement, feeds the accounting register and the financial summary. If every movement has been recorded well and associated with the right account of the chart of accounts, reclassification is almost automatic and the report is immediately verifiable.
Management software such as AmministraPro lets you keep the cash journal linked to the chart of accounts and the current account, with integrated bank reconciliation, so that the report is built from the data already recorded. You will find the features on the /funzioni page and the plans on the /prezzi page.
Frequently asked questions
Is the cash journal mandatory for the condominium?
The manager is required to keep the accounting register under Article 1130, number 7, of the Italian Civil Code, and the cash journal is its operating tool. The report under Article 1130-bis is based precisely on the chronological entries of cash and bank movements.
What is the difference between the cash journal and the report?
The cash journal records financial movements day by day in chronological order. The report, at year-end, summarises and reclassifies those movements into the accounting register, the financial summary and the explanatory note. The first is the source, the second is the synthesis.
How often should the cash journal be updated?
As often as possible, ideally recording movements as they happen or at a fixed, close cadence. Accumulating many movements to enter at once increases errors and misalignments with the current account, then making reconciliation difficult.
What must each line of the cash journal contain?
At least the date of the transaction, a clear description with supplier and nature of the movement, the amount with the correct sign, the cash or bank account involved and the reference to the supporting document. These data make every movement verifiable and easily reclassifiable.
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