Your records have to provide enough details to determine your tax obligations and entitlements. Also, your records have to be supported by original documents.
Records can be kept in various formats including ledgers, spreadsheets or bookkeeping/accounting software, such as Quickbooks or Simply Accounting.
Your records whether in paper or electronic format, have to:
• be reliable and complete;
• provide you with the correct information you need to assist in fulfilling your tax obligations and to calculate your entitlements;
• be supported by source documents to verify the information contained in the records; and
• include other documents, such as appointment books, logbooks, income tax and goods and services tax/harmonized sales tax (GST/HST) returns, scientific research and experimental development (SR&ED) vouchers and records, and certain accountants' working papers, that assist in determining your obligations and entitlements.
Note: Persons carrying on more than one business must keep separate records for each business.
Home-based businesses have special considerations for claiming business expenses. All businesses are encouraged to get professional advice from an accountant regarding business expense claims.