Keeping receipts might not be the most exciting part of running a business, but good recordkeeping can save you a lot of trouble later.
If you are self-employed or running a small business in Canada, your receipts help support the income and expenses you report on your tax return.
So how long should you actually keep them?
The General Six-Year Rule
In most cases, the Canada Revenue Agency requires businesses and self-employed individuals to keep their records and supporting documents for at least six years from the end of the last tax year they relate to.
For example, if you are self-employed and a receipt relates to the 2026 calendar tax year, you would generally keep the record through the end of 2032.
For corporations, the tax year is the corporation's fiscal period, so the calculation may be different from the calendar-year example above.
There are also circumstances where records need to be kept longer. For example, CRA identifies special rules for certain long-term property records, late-filed returns, objections or appeals, and situations where CRA specifically requires records to be retained for longer.
What Records Should You Keep?
Your records may include more than just paper receipts.
Depending on your business, you may need to keep documents such as:
- Purchase receipts
- Sales invoices
- Bank statements
- Credit card statements
- Expense records
- Contracts
- Deposit information
- Payroll records
- Tax documents
The important thing is being able to support the information you report if the CRA ever asks for documentation.
Can You Keep Digital Receipts?
You don't necessarily need a filing cabinet full of paper.
Electronic records can make it much easier to organize and retrieve business documents, provided they are maintained properly and remain accessible and readable.
Instead of allowing receipts to accumulate in drawers, bags or email inboxes, consider creating a consistent system for storing them as you receive them.
Create a Simple Recordkeeping Routine
Good recordkeeping is easier when it becomes part of your regular routine.
Try setting aside a few minutes each week to:
- Collect your receipts.
- Record your expenses.
- Categorize transactions.
- Match receipts with the appropriate expenses.
- Check that important documents are stored safely.
Small, regular updates can be much easier than trying to reconstruct months of financial activity at tax time.
Don't Rely Only on Your Bank Statement
A bank or credit card statement can show that a transaction occurred, but it may not contain all the information needed to explain what was purchased or why it was a business expense.
Keeping the actual receipt or supporting document gives you a more complete record.
Make Your Records Easy to Find
Keeping records is only useful if you can find them when you need them.
Use clear categories, consistent file names and a system that allows you to locate documents by date, vendor or expense type.
The goal isn't simply to save documents. It's to create a recordkeeping system you can actually use.
A Little Organization Goes a Long Way
You don't have to wait until tax season to organize your business finances.
A simple habit of recording expenses and storing receipts throughout the year can make bookkeeping easier and help you maintain better financial records.
CACHE Tip: Keeping your receipts and expenses together can make it easier to understand where your business money is going and find supporting documents when you need them.
