Comparisons
Calendar year or financial year for the accounts
An Italian condominium must close its financial statement every year, but the law does not require the management period to match the calendar year. The assembly can resolve a financial year with different start and end dates, for instance from July first to June thirtieth, as long as the period stays twelve months and the cycle is kept consistent over time. Choosing between the calendar year and a resolved financial year is not merely formal: it affects how budgets are planned, when accounts with suppliers close, and how the management software organizes line items, balances, and due dates. This guide compares the two periods to help administrators choose and keep that choice consistent over time.
Compared
| Criterion | Calendar year | Resolved financial year |
|---|---|---|
| Legal basis | No resolution needed, it is the default practice | Requires an explicit assembly resolution under article 1135 |
| Consistency with invoices and tax filings | Maximum, matches suppliers' civil year and tax deadlines | May require extra reconciliation for invoices spanning the period |
| Fit with cost seasonality | Splits winter heating costs across two calendar years | Can align the period with a technical season, for example October to September |
| Changing the period | Not applicable, it is the default | Produces a bridge period to document in the explanatory note |
| Historical comparability of statements | High if the building has never changed period | High if the period stays stable after the initial resolution |
| Handling in software | Default setting in AmministraPro | Configurable per building in AmministraPro with custom start and end dates |
Checklist to choose and maintain the accounting period
- Check whether the building bylaws already set an accounting period
- Assess whether the building's spending has marked seasonality, for example centralized heating
- If choosing a resolved financial year, bring an explicit resolution to the assembly under article 1135
- Document any bridge period in the explanatory note when changing periods
- Keep the same period in subsequent years to preserve comparability between statements
- Verify the correspondence between budget and actual line items required by article 1130 bis
- Configure the accounting period in the condominium software before opening the new financial year
- Check that installments and due dates generated by the software match the chosen period's dates
What Italian civil law says about the accounting period
Article 1130 bis of the Italian Civil Code requires an annual condominium financial statement, drawn up under the transparency criteria set out in the rule, including the accounting register, the financial summary, and the explanatory note. The text does not fix January first as the start date: it requires an annual period, not necessarily aligned with the calendar year.
The calendar year remains the most common practice, since it is easy to reconcile with invoices, tax filings, and deadlines that already run on a civil year basis. A shifted financial year, for example October to September, is a legitimate choice when the building needs to align its accounts with a recurring event, such as the heating season or maintenance of technical systems governed by standards like UNI 10801 for lifts.
How the period is resolved and changed
The accounting period is set by the assembly, typically in the building bylaws or through a resolution approving the first financial statement under the new period. Changing the period once management is underway requires an explicit resolution and produces a bridge period shorter or longer than twelve months, which must be clearly explained in the note so residents are not confused.
Once resolved, the period should be kept stable: changing it every year weakens the comparability of financial statements and complicates the budget to actuals comparison that article 1135 assigns to the assembly at approval time.
- Calendar year: implicit by default, no bridge period to manage
- Resolved financial year: requires an explicit resolution and, at change time, a documented bridge period
- In both cases the period stays annual, as required by article 1130 bis
Consistency of the accounts and supplier reconciliation
The calendar year simplifies reconciliation with suppliers, who almost always invoice on a civil year basis, and with the building's tax obligations as a withholding agent. A resolved financial year can instead make spending more readable when the building has marked seasonality, for instance centralized heating systems where costs concentrate in the cold months spanning two calendar years.
Whichever period is chosen, the financial statement must keep correspondence between the approved budget line items and the actual statement, as required by article 1130 bis: a stable accounting period helps residents compare the same expense categories year over year.
Managing the period in condominium software
In AmministraPro the accounting period is set at the building level, and the system automatically organizes installments, due dates, and cost allocation around the dates of the chosen period, whether the calendar year or a period resolved by the assembly. This keeps budget to actuals consistency verifiable even when the financial year does not match the civil year, because the software anchors every line item to the period stated in the resolution.
For a building that decides to change its period, handling the bridge period in software avoids duplicated installments or gaps between one financial statement and the next, something the administrator should check carefully in the transition year.
Frequently asked questions
Is a condominium required to use the calendar year for its financial statement?
No. Article 1130 bis of the Italian Civil Code requires an annual financial statement with precise transparency criteria, but does not require the period to match the calendar year. The assembly can resolve a different period, for example October to September, as long as it stays twelve months and is kept consistent in subsequent years.
How is the change from calendar year to a different financial year resolved?
It requires an explicit assembly resolution, typically when approving the financial statement, setting the new start and end dates of the period. The change almost always produces a bridge period, shorter or longer than the standard twelve months, which must be clearly explained in the note to avoid disputes from residents.
Is it a good idea to change the period every year to fit current needs?
No, this is discouraged. Year over year comparability of financial statements, useful for assessing spending trends, relies on a stable period. Frequently changing the accounting period complicates the budget to actuals comparison required by article 1130 bis and can confuse residents at approval time.
Does software like AmministraPro handle financial years that differ from the calendar year?
Yes. In AmministraPro the accounting period is configured at the individual building level with custom start and end dates: the system automatically organizes installments, due dates, and cost allocation around the chosen period, whether the calendar year or one resolved by the assembly, keeping budget to actuals correspondence verifiable.
What happens to supplier contracts if the financial year does not match the calendar year?
Suppliers continue invoicing under their own criteria, almost always on a civil year basis, while the building allocates each invoice to the correct period of the resolved financial year. This requires a bit more reconciliation than with the calendar year, but does not change the substance of contractual obligations toward suppliers.
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