Business Recordkeeping Requirements
What business records CRA expects, how long to keep them, GST/HST receipt rules and a simple weekly system.
The short version
- Every business must keep books and records that let CRA check its income, expenses and GST/HST: sales records, receipts and invoices, bank statements, payroll records and the documents behind them.
- Keep them for six years from the end of the last tax year they relate to. Records about assets you still own, share registers and some corporate records are kept longer, and a late-filed return restarts the six years from the filing date.
- Records must be kept at your place of business or home in Canada, unless CRA gives you written permission otherwise. Electronic records are fine if they're complete and readable.
- To claim GST/HST input tax credits, your receipts must show certain details, and more details are needed as the purchase gets bigger ($100 and $500 thresholds).
- Without records, CRA can estimate your income and deny your expenses. Destroying records early without permission is an offence.
Business Recordkeeping Requirements
Recordkeeping is the least exciting part of running a business and the most expensive one to skip. In a CRA review, a deduction you can't prove is usually a deduction you lose, and income you can't explain is income CRA estimates for you. Good records are also the cheapest way to cut your accountant's bill. Here's what CRA expects, how long to keep it, and a system that takes ten minutes a week.
What to Keep
| Record | Examples |
|---|---|
| Sales and income | Invoices issued, sales receipts, cash register tapes, platform and payment processor reports, deposit records |
| Expenses | Supplier invoices and receipts, contracts, leases, credit card and bank statements |
| Vehicle | A logbook of business kilometres, odometer readings, fuel and repair receipts; see the mileage log guide |
| Assets | Purchase and sale documents for equipment, vehicles and buildings, for capital cost allowance |
| Inventory | Year-end counts and how you valued them |
| Payroll | Timesheets, pay records, TD1 forms, remittance records, T4s |
| GST/HST | Returns, sales broken out by tax rate, input tax credit documents |
| Corporations | Minute book, share register, resolutions, shareholder loan records, and the working papers behind each T2 return |
Bank and card statements prove that you paid; they don't prove what you bought. Keep the receipt or invoice too.
How Long to Keep Them
| Situation | Keep until |
|---|---|
| Most records | Six years from the end of the last tax year they relate to |
| A return filed late | Six years from the date you filed it |
| An objection or appeal is under way | Until it's resolved and the appeal time is over, if that's later |
| Assets you still own (cost, improvements, CCA) | Until six years after the year you sell them |
| Share registers, corporate minutes, records of buying and selling property, wind-up records | Generally permanently, or until two years after a corporation is dissolved |
| Loss carryforwards | Until six years after the last year you use the loss |
To destroy records early, you need CRA's written permission (form T137). The personal side of the rule is on how long to keep tax records, and the receipts list for individuals is on what receipts to keep.
Do I have the records CRA will want?
Describe your business and how you keep records now. The assistant tells you what's missing, how long to keep each item, and the gaps a CRA reviewer would ask about first.
GST/HST Receipts: The Three Thresholds
To claim an input tax credit, the document must show more as the purchase gets bigger:
| Total purchase (including tax) | The document must show |
|---|---|
| Under $100 | Supplier's name, the date, the total paid |
| $100 to $499.99 | All of the above, plus the GST/HST charged (or that it's included), whether the item is taxable, and the supplier's GST/HST number |
| $500 or more | All of the above, plus your name (or business name), a description of what you bought, and the payment terms |
A debit slip with just a total isn't enough for a $300 purchase. Ask for the itemized receipt. Input tax credits can generally be claimed up to four years later, so a missed one isn't lost right away. See the GST/HST guide.
Paper or Electronic?
Electronic records are accepted if they're complete, readable and can be produced when CRA asks. A phone photo of a receipt is fine if you can read the details; a faded thermal receipt in a shoebox often isn't. If you use cloud software, you must be able to get the records out in a readable form. Keep backups. CRA also expects your records to be kept in Canada, or accessible from Canada.
A Ten-Minute-a-Week System
- One business bank account and one business card. Nothing personal goes through them.
- Photograph every receipt the day you get it, into one folder or app, named with the date and supplier.
- Write the purpose on anything that could look personal: meals, travel, gifts, phone. See meals and entertainment.
- Reconcile weekly: match bank and card transactions to receipts or invoices.
- Download platform reports every January, and save last year's year-end package as a single PDF.
Bookkeeping software is deductible, and so is a bookkeeper; see accounting and legal fees.
What Happens Without Records
- Expenses denied. In an audit, unsupported expenses are routinely disallowed.
- Income estimated. CRA can use bank deposits or a net worth calculation; see cash income and taxes.
- Requirements to keep records. CRA can formally require you to keep proper records, and failing to comply is an offence.
- Penalties for destroying records or failing to provide them can apply, and a court can order you to produce them.
If your records have gaps, rebuild what you can from bank statements, supplier accounts and emails, and write down how you did it. A reasonable reconstruction beats nothing. Records are also the backbone of family payroll; see paying your spouse and paying your children.
When CRA asks for documents, upload the letter to the document analyzer to see exactly what's requested and the deadline. Everything else about running a small business is on small business taxes.
Recordkeeping Questions
How long do businesses have to keep records in Canada?
Generally six years from the end of the last tax year the records relate to. Some records, such as those about assets you still own and corporate share registers, must be kept longer.
Can I keep my business records electronically?
Yes. Electronic records are acceptable if they are complete, readable and can be produced when CRA asks. Keep backups.
Can I throw out records before six years?
Only with written permission from CRA, requested on form T137 or in writing to your tax services office.
What does a receipt need to show to claim GST/HST input tax credits?
Under $100: supplier name, date and total. From $100: also the GST/HST charged and the supplier’s registration number. From $500: also your name, a description and the payment terms.
What happens if I don’t keep records?
CRA can deny expenses, estimate your income, require you to keep records, and charge penalties. Destroying records without permission can lead to prosecution.
Sources: CRA, Where to keep your records, how long to keep them; Input tax credits; GST/HST Memorandum 15-1, General requirements for books and records. Checked October 2026. The asset and loss-carryforward retention rows are our reading of the general rule; confirm with your accountant for long-held assets.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.