What records to keep, and for how long

A surprising number of bookkeeping problems come down to one question asked too late: where is the paper behind this entry? The Canada Revenue Agency's rules on records are short and specific. This is what they require, with each point linked to the CRA page that states it, and what it means for how a small business should keep its books.

Who has to keep records

The obligation is broader than most owners assume. It applies to anyone who has to file a tax return and anyone carrying on a business or engaged in commercial activity, along with trusts, non-profit organisations and registered charities, among others [1]. A sole proprietor with a side business is covered. So is a holding company that does nothing but own shares.

What counts as a record

The CRA's list is long on purpose. It includes ledgers, journals, books, charts, tables, financial statements, statements of account, and income tax and GST/HST returns, together with the documents that support them: sales invoices, purchase receipts, vouchers, contracts, guarantees, bank deposit slips, bank statements, cancelled cheques, cash register slips, credit card receipts, work orders, delivery slips, working papers, logbooks and emails [1].

In practice this means the ledger is not enough on its own. Each entry needs the document that explains it. A bank feed line that says "e-transfer, $2,400" is a record of a payment, not of what it was for.

How long to keep them

Generally, all required records and supporting documents must be kept for six years from the end of the last tax year they relate to [2]. For a corporation with a December 31 year-end, the 2026 records must be kept until the end of 2032.

Two exceptions extend that period. If you file an income tax return late, the six years run from the date you file that return [2]. And if you have filed an objection or an appeal, records must be kept until the latest of the date the matter is resolved, the date for any further appeal has passed, and the end of the normal six-year period [2].

Where to keep them

Records must be kept at your place of business or your residence in Canada, unless the CRA gives you written permission to keep them elsewhere [2]. That matters for businesses that store everything with a cloud provider whose servers are outside the country: the permission is something to ask for, not assume.

Paper, electronic, or both

Electronic records are acceptable. The CRA accepts records produced and kept in paper format, in paper format later converted to an accessible and readable electronic format, or in an electronic readable format from the start [3].

Paper documents can be imaged and the paper destroyed, provided the image is an accurate reproduction intended to take the place of the paper document and gives the same information [3]. Once imaged to the applicable standard, the images become the permanent records [3].

Electronic files need backups. The CRA's guidance is to make backup copies of business information recorded on rewritable media and to store the backups away from hazards such as magnetic fields, direct light, excessive moisture and temperature extremes [3]. For most small businesses today that means the accounting system's own storage plus a second copy the business controls.

Destroying records early

Records cannot be destroyed before the retention period ends without permission. To ask for it, complete Form T137, Request for Destruction of Records, or write to your tax services office. The CRA notes that destroying paper or electronic records without its permission can lead to prosecution [2].

What this means for the books

Three habits keep a business on the right side of these rules with little effort.

Attach the document to the entry. Most accounting systems accept an image or PDF against each transaction. A receipt attached the week it arrives is a record; a receipt in a drawer is a search.

Reconcile monthly. A reconciled ledger is the index to the records. When the CRA asks about a year, the answer starts with a trial balance that ties to the bank, not with a box of statements.

Keep the year-end file whole. The working papers, schedules and reconciliations behind each year's return are records too [1]. Keep them with the return, in one place, for the six years.

Sources

Checked against the linked pages on 3 September 2026. Rules change; confirm before acting.

1. Canada Revenue Agency, What records to keep and who has to keep them.
2. Canada Revenue Agency, Where to keep your records, for how long and how to request permission to destroy them early.
3. Canada Revenue Agency, Acceptable format, imaging paper documents and backing up electronic files.

This article describes general rules and is not advice for any particular situation.