Record Keeping:
Always keep adequate records of all your business transactions. This can help you save taxes.
For simple record keeping, you can use an excel spread sheet or an accounting program like Quick books or Simply accounting.
You must keep your records for minimum 7 years. If you need to destroy your records you will require a written permission from CRA to do so. You sill need to send form T137 to request permission to destroy records.
You must keep records of Sale and Purchase Invoices, Expense Receipts, Cancelled Cheques and copy of Bank Deposits.
If you do not get a receipt for a transaction, write in your records the date of transaction, item purchased, name and address of supplier and the money spent.
