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Record keeping is the least interesting part of running a business and the one most likely to cost you money — not through penalties, but through deductions and tax credits you were entitled to and cannot prove. This page covers what to keep, how long, and what a document actually has to show to be worth keeping.
What counts as a record
More than receipts. Records are anything supporting the numbers you report:
- Sales invoices you issued, including ones that were cancelled or written off
- Purchase receipts and supplier invoices
- Bank and credit card statements
- Contracts and agreements
- Mileage logs, if you claim vehicle expenses
- Payroll records, if you have employees
- Your general ledger and the reports built from it
The six-year rule, and when the clock starts
The general requirement is to keep records for six years. The part that catches people is what six years counts from: it runs from the end of the last tax year the records relate to, not from the date on the document.
A receipt from March 2026, for a December-year-end business, relates to the 2026 tax year, which ends 31 December 2026. Six years from that point means keeping it until the end of 2032 — nearly seven years after you spent the money.
What a receipt has to show
A bank statement line proves money left your account. It does not prove what you bought, and that distinction is what separates a supported claim from an unsupported one. To claim an input tax credit, the documentation you need scales with the size of the purchase:
| Purchase amount | What the document must show |
|---|---|
| Under $100 | Supplier name, date, and the amount of tax paid |
| $100 to $499.99 | The above, plus the supplier's GST/HST registration number |
| $500 and over | The above, plus your name, the terms of payment, and a description of what was supplied |
These thresholds were raised from $30 and $150 by an amendment that took effect for purchases on or after 20 April 2021. Guidance published before that date — and a fair amount published since — still quotes the old figures.
Paper, digital, or both
Electronic records are acceptable, and a scan or photo of a paper receipt is fine, provided it is readable and you keep it as long as the original would have been kept. Thermal receipts fade to blank within a couple of years, so photographing them at the point of purchase is not fussiness — it is the difference between having the record and having a grey rectangle.
Records need to be accessible on request. Data locked inside a subscription you have cancelled, or a format nothing can open, is not accessible.
What happens when records are missing
The practical consequence is rarely a penalty. It is that an expense you genuinely incurred gets disallowed because you cannot substantiate it, and you pay tax on income you did not keep. The burden of proof sits with you, not with the reviewer.
A system that survives a year
The realistic failure is not choosing the wrong system — it is choosing one that requires discipline you will not sustain in month eight. What tends to work:
- Capture at the moment of spending. Photograph the receipt when you receive it. Anything relying on a shoebox and a January afternoon does not survive contact with a real year.
- Attach the record to the transaction, not to a folder. A receipt filed by date is findable only if you remember the date.
- Reconcile monthly. Twenty minutes a month beats two days in April, and catches missing records while you can still remember what they were.
- Keep the invoices you issued, not just the ones you paid. Both sides of the ledger are records.
iBill stores receipts attached to the expense they belong to, keeps every invoice you have issued including cancelled ones, and holds the underlying ledger — so the records stay together with the transactions they support.
Keep the records with the transactions
Attach receipts to expenses, keep every invoice you have issued, and export the lot when your accountant asks. Free to use, no credit card required.
Create a free accountFrequently asked questions
How long do I have to keep business records in Canada?
Six years, counted from the end of the last tax year the records relate to — not from the date on the document. For a December year-end, a receipt from March 2026 needs keeping until the end of 2032.
Is a bank statement enough, or do I need the receipt?
A statement shows money moved; it does not show what was purchased or how much tax was paid. For an input tax credit you need documentation showing the supplier, the date and the tax amount, with more detail required above $100 and above $500.
Are photos of receipts acceptable?
Yes, provided they are legible and kept for the full retention period. Photographing thermal receipts early is sensible, since they commonly fade to blank within a couple of years.
Do I need to keep invoices I cancelled or wrote off?
Yes. A cancelled invoice is part of the record, and an unexplained gap in your invoice numbering raises more questions than a documented cancellation.
What happens if I have lost a receipt?
The expense may be disallowed if you cannot substantiate it, meaning you pay tax on income you did not keep. Ask the supplier for a duplicate where you can — the burden of proof rests with you.