Record Keeping
How Long Should a Canadian Business Keep Receipts and Records?
Most Canadian businesses should keep receipts and supporting records for at least six years from the end of the tax year they relate to.
Most Canadian businesses should keep receipts and supporting records for at least six years from the end of the last tax year they relate to. This general CRA rule applies to records used to support business income, expenses and tax reporting. Some documents may need to be kept longer, and the right retention period depends on your business structure, the type of record and whether the document could still be relevant to a tax calculation. CRA business records guidance
For a self-employed Canadian, that usually means keeping more than just paper receipts. Invoices, bank statements, contracts, mileage logs, deposit records, credit card statements, tax returns, GST/HST documents and other supporting information may all form part of your business records. The goal is to preserve enough detail for the Canada Revenue Agency (CRA) to understand and verify your transactions if requested. CRA guidance on records and supporting documents
The general CRA rule: keep business records for six years
The usual retention period is six years from the end of the last tax year to which the records relate. This is a minimum period, not a recommendation to discard documents as soon as six years have passed. The CRA may ask for records during a review or audit, and the relevant period can depend on when a record may be needed rather than only when the transaction occurred. CRA Information Circular on books and records retention
The tax year used for this calculation can depend on the taxpayer. For many unincorporated businesses, the relevant tax year is the calendar year. A corporation generally uses its fiscal period. That distinction matters when you decide when the six-year period begins. CRA retention-period guidance
What does “from the end of the tax year” mean?
Suppose a sole proprietor has receipts and expense records relating to the 2024 calendar tax year. The six-year period is measured from the end of 2024, rather than from the date of each individual purchase. As a practical planning approach, the business owner should not destroy those records before the end of 2030 unless the CRA has approved earlier disposal.
This example is only a general illustration. Your actual retention period may be different if the records relate to capital property, GST/HST, a corporation, a dispute, an audit or another ongoing tax matter.
Which receipts and records should a business keep?
A business record can be much broader than a receipt. CRA guidance describes records as documents or other information that help establish what happened in a transaction and how it affected the business. Your records should be organized so that income, expenses and tax-related amounts can be understood and supported.
Income records
- Sales invoices and receipts
- Contracts and agreements
- Cash register records or point-of-sale reports
- Bank deposit slips and statements
- Fee statements and platform reports
- Records of income received as cash, property or services
Income records should make it possible to identify the date, amount and source of business income. Keeping only a bank deposit may not explain which customer, contract or invoice generated the amount, so related documents should be retained together. CRA business records guidance
Expense records
- Purchase receipts and invoices
- Credit card statements
- Cancelled cheques and payment confirmations
- Bank statements
- Supplier agreements and work orders
- Business expense reports and supporting notes
A receipt is more useful when it clearly identifies the seller, the date, the goods or services purchased and the amount paid. If a receipt is incomplete, add a clear business description to the receipt or your expense records while the transaction is still easy to remember. Whether an expense is eligible for a particular tax treatment depends on the facts and the supporting records available. CRA expense-record guidance
Property and larger-purchase records
Keep documents for property that the business buys, sells or uses in its operations. These may include purchase invoices, closing documents, improvement costs, financing records, trade-in details and sale documents. Property records can remain relevant after the original purchase because they may be needed to determine information connected with the property in a later year. CRA property-record guidance
GST/HST records may need special attention
If you are registered for GST/HST, keep the sales and purchase invoices and other records connected with your commercial activities and GST/HST reporting. The usual GST/HST retention period is six years from the end of the year to which the records relate, but the CRA may ask for invoices to be retained longer. CRA GST/HST records guidance
GST/HST records should contain enough information to support the amounts reported and any input tax credit claim. The exact documentation needed depends on the transaction and the nature of the claim. Keeping the invoice alone may not be enough if the business cannot connect it to the underlying purchase, payment or business activity.
Capital property and improvements deserve extra care. CRA guidance notes that invoices for capital property may need to be kept longer when they could support future GST/HST calculations or amounts connected with a later change in use. CRA GST/HST registrant guidance
Can you keep receipts electronically?
Yes. CRA guidance allows businesses to use electronic record-keeping systems, provided the records remain clear, readable, secure and available in an appropriate format. Electronic records are not automatically sufficient simply because they exist in an app or cloud account. The system should preserve the information needed to understand the transaction and support the business records.
When scanning paper receipts, keep the complete image and make sure important details are readable. A useful digital filing system can include the transaction date, supplier, category, amount, tax information where relevant and a short business-purpose note. Keep related documents together rather than storing an image with no connection to the accounting entry.
Businesses using electronic systems should also protect their records against loss, accidental deletion and system changes. CRA electronic record-keeping guidance discusses maintaining readable records, preserving audit trails and keeping backups that can be restored and used if requested. CRA electronic record-keeping guidance
What if you change bookkeeping software?
Before changing software, export or preserve the historical records you may still need. Retain source documents, transaction details and enough system information to explain how reports were created. Do not assume that cancelling a subscription or closing an account preserves access to the records.
A practical approach is to maintain at least two secure copies of important electronic records, test that files can be opened and review the backup process periodically. The best method depends on your systems, the type of data and the level of detail required for your business.
When should you keep records longer than six years?
The six-year period is a general minimum. A longer period may be appropriate when a record can still affect a later tax year or when the CRA has requested that it be retained. This can arise with capital property, long-running transactions, unresolved reviews, objections, appeals or records connected with a business structure that has not completed its relevant obligations.
The CRA may require specific records to be kept for an additional period. If you want to destroy records before the required period has passed, you generally need written CRA permission rather than relying on your own decision. CRA keeping-records guidance
Eligibility and record requirements depend on your facts and the records you have. A sole proprietor, partnership and corporation may have different administrative and tax records, and a GST/HST registrant may need documents that another business does not. When in doubt, keep the record and confirm the appropriate period with the CRA or a qualified tax professional.
Record-keeping checklist for Canadian businesses
Use this checklist to review your system:
- Keep business income records, including invoices, contracts and deposit support.
- Keep receipts and other evidence for business purchases and expenses.
- Keep bank statements, credit card statements and payment confirmations.
- Keep records for property purchases, improvements, disposals and trade-ins.
- Keep mileage logs and other records that support vehicle-related business activity.
- Keep GST/HST invoices, working copies of returns and related business records if registered.
- Keep copies of filed tax returns, notices and important CRA correspondence.
- Record the business purpose when it is not obvious from the receipt.
- Scan documents clearly and check that electronic copies are readable.
- Back up digital records and test that they can be restored.
- Organize records by tax year, business or account so they can be found quickly.
- Do not destroy records early without confirming that CRA permission is required and has been received.
A simple next step
Choose one tax year and create a retention date for each record group. Then gather receipts, invoices, statements and supporting notes into a consistent digital filing system. TiKi Tax can help you scan receipts, organize expenses, track mileage and prepare reports for your own review or discussion with a tax professional.
Start by reviewing your current receipts and asking three questions: What tax year does this document relate to? What transaction does it support? Could it still affect a later calculation? If the answer is unclear, keep the document until you have confirmed the correct treatment.
This article is for general educational information only. CRA requirements depend on your circumstances and records; it is not tax, accounting or legal advice.