What happens if you lost all your documents for transactions and balances for this period?

Stuff happens and as it happens, there’s no reason to think why and how bad it is, but rather just move on. Obviously you should (if needed and possible for the situation) come up with actions to take so this doesn’t happen again, but more importantly, you now need to sort out your statements for the period! 

So how do you come about sorting them out? Here are some ideas by financial statement line items:

  • Cash and cash equivalents – count your physical cash and agree with bank statement your bank account (also, check the movements);
  • Receivables – see further down for revenue (nothing more to do here than just estimate an sum unfortunately);
  • Inventory – go count the items for quantity and surely the prices should be known from the agreed price listings with suppliers;
  • Property, plant and equipment – you still got the asset? If you haven’t yet accounted for it into your PPE ledger, surely you can just ask for the price again from the supplier;
  • Payables – confirm (in this case, ask) the balances with your suppliers;
  • Payroll – normally a monthly charge anyway;
  • Revenues – you know your last period’s stock count? Know how many you bought from confirming payables? Should be easy math to find out how many you sold. Customers you sold the items to? Nothing else to hope here that they actually pay up. Unless you keep some sort of sales ledger or listing for your sales by names and items with prices obviously;
  • Expenses – can be picked up from the payables balances your confirming.

Remember, cash movement on your bank accounts also gives a pretty good idea of your transactions. Oh, and if you’re unable to account for some transactions or balances, let them just be the balances from your prior period or just no transactions for this line item. Things will come around at some point.