How long should you keep your business records?

Short answer: In Canada, keep your business records and supporting documents for six years from the end of the last tax year they relate to (the CRA’s general rule). Some situations extend that, and you generally need the CRA’s permission to destroy records early. Good record-keeping isn’t just tidiness — it’s what stands behind every number on your return if the CRA ever asks.

The general rule: six years

As a general rule, keep your business records and supporting documents for six years from the end of the last tax year they relate to. That covers your books, statements, invoices, receipts, and the documents that back up what you filed.

Why it matters

If the CRA reviews or audits a return, the burden is on you to support the figures. Organised records turn a stressful review into a straightforward one — and disorganised records can turn a simple question into a costly problem.

A few nuances

Some situations change the timeline — for example, records tied to the purchase of long-term assets, or if you file a return late. Certain permissions are needed before destroying records early. When in doubt, keep them, and confirm the specifics with the CRA’s official tax guidance for businesses.

Practical tips

Store records securely, keep digital backups, and keep business and personal records separate. If you use cloud accounting, much of this is handled for you — statements and source documents stay attached to the transactions.

Want a record-keeping setup that’s audit-ready without extra effort? Talk to Avora.