Did you know there is a legal requirement for keeping your accounting records?
Advice from the CRA is that all records such as paper documents and those stored in an electronic format, must be kept in Canada.
Whichever accounting or record-keeping method you use, your records must be permanent and contain a systematic account of your income, deductions, credits, and other information you need to report.
The CRA also advise that businesses must retain records for six years from the end of the last tax year to which they relate. However, as a general rule of thumb, most businesses keep their records for 7 years – just to be on the safe side!