Record Keeping

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Written by: Peter Parker
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Why is it important
to keep records?

This is because it helps you identify the sources of your income and help you in deciding whether you should apply for a GST/HST. It can also sometimes help you get tax savings when your records are complete and organized. When the CRA audits your business, having an organized and complete record saves you time. Finally, your records will tell you what is happening in your business and why. It helps you keep track of your progress and how financially profitable your business is.

What you should know about: Retaining and Destroying Records

  1. Records must be kept for six years

  2. Time frame starts from the last year you used your records

Important:

You may request for early destruction from CRA, and they in turn will decide whether you can get a written permission to do so

BUT: Even if you have the written permission from CRA, it does not extend to other laws might still require you to keep records (such as federal, territorial, provincial, or municipal laws.

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