General Requirements for Books and Records
Are you unsure of what documents you are required by the CRA to keep and for how long? At Reschke Fritz LLP, we're here to help you stay organized and confident in your accounting and tax responsibilities. Contact our office if you have questions about your records or bookkeeping requirements. In the meantime, here are some tips, facts and regulations regarding record keeping.
Record-keeping requirements
Under section 286, the following persons are required to maintain all records that are necessary to enable the determination of the person's liabilities and obligations under the GST/HST or the amount of any rebate or refund to which the person is entitled:
every person who carries on a business or is engaged in a commercial activity in Canada
every person who is required to file a GST/HST return
every person who makes an application for a rebate or refund
What Records Should You Keep?
Business records can be maintained in paper or electronic form and may include:
Invoices and receipts
Bank and financial records
Agreements and statements
Electronic accounting records
Supporting documents and accounting working papers
Electronic records should be stored in an accessible format and supported by reliable backup procedures.
How Long Should You Keep Your Records?
Generally, GST/HST records must be kept for six years after the end of the year they relate to. Electronic records must remain accessible and readable throughout the required retention period. Certain records may need to be kept longer if they relate to an objection, appeal, or a specific CRA requirement.
Going Digital? Keep It Secure.
Using accounting software and cloud-based systems can make record keeping easier, but businesses are still responsible for ensuring their records are accessible, backed up, and available if requested by the CRA. Using a third-party bookkeeper, accountant, or cloud provider does not remove the business owner's responsibility for maintaining proper records.
The Bottom Line
Good record keeping isn't just about staying organized—it helps ensure your GST/HST obligations and ITC claims can be properly supported. Taking the time to maintain complete, secure, and accessible records can make tax filing and potential CRA reviews much smoother.
Read more about general record keeping requirements here.