It’s an important question — keeping records too short a time can get you in trouble with the CRA, but keeping everything forever can create unnecessary clutter. I’ve helped countless Ottawa business owners organize their books and stay compliant, so let me break down what the CRA expects.
CRA Rules for Record Retention
The Canada Revenue Agency (CRA) requires businesses to keep records for six years from the end of the last tax year they relate to. This includes:
- Invoices and receipts
- Bank statements
- Payroll records
- Tax returns
- Accounting ledgers
- HST/GST filings
For example, if your fiscal year ends on December 31, 2025, you must keep records until at least December 31, 2031.
Why Proper Record-Keeping Matters
Keeping organized records isn’t just about avoiding penalties — it’s about running your business more efficiently. Proper bookkeeping:
- Makes audits and CRA reviews smoother
- Helps track cash flow and profits
- Simplifies tax filing year after year
- Supports loan or grant applications
I work with Ottawa businesses to ensure all records are properly stored, categorized, and easy to access — whether digitally or on paper.
Tips for Ottawa Business Owners
1. Use Cloud-Based Storage
Digital copies of receipts, invoices, and statements reduce clutter and are often easier to retrieve than paper records.
2. Keep Originals for Important Documents
For legal or tax purposes, keep original contracts, property documents, and any paper that may be required in an audit.
3. Organize by Year and Type
Separate records by tax year and type (income, expenses, payroll) to make it quick to find what you need.
4. Plan for Disaster Recovery
Ensure you have backups for digital records, so they’re safe from theft, loss, or computer failure.
How I Can Help
Keeping records for six years might sound simple, but I’ve seen small mistakes lead to CRA penalties and missed deductions. As a local bookkeeper in Ottawa, I help businesses stay organized, compliant, and audit-ready — all while freeing owners to focus on growing their business.
Take Control of Your Records Today
Don’t wait until tax season or a CRA review to get your records in order. I can help Ottawa business owners create an organized, compliant system that makes bookkeeping simple and stress-free.
