The Ultimate Bookkeeping Checklist for Canadian Small Businesses (CRA-Compliant)
Keeping accurate financial records isn’t just good practice—it’s a legal requirement under the Canada Revenue Agency (CRA). Whether you’re a solo entrepreneur, a growing small business, or managing corporate bookkeeping, staying organized year-round ensures smoother tax filing, better financial decisions, and peace of mind during audits.
This checklist walks you through the essentials of CRA-compliant bookkeeping for 2026 and beyond.
📂 1. Documents You Must Keep Year-Round
- Invoices and receipts (sales and purchases)
- Bank statements and credit card statements
- Payroll records (T4 slips, employee contracts, remittance proofs)
- GST/HST returns and supporting documents
- Loan agreements and financing records
- Expense documentation (travel, meals, home office, vehicle logs)
👉 CRA requires businesses to keep records for at least six years after the end of the tax year.
🧾 2. CRA Record-Keeping Requirements
- Maintain records in English or French.
- Keep both paper and electronic records accessible.
- Ensure records are complete, reliable, and backed up.
- Retain original source documents (not just summaries).
- If using accounting software, ensure it meets CRA audit-trail requirements.
💰 3. GST/HST Documentation
For businesses registered for GST/HST, keep:
- Invoices showing GST/HST collected
- Receipts for input tax credits (ITCs)
- Filed GST/HST returns
- Adjustments, rebates, and refunds
👉 Missing GST/HST support documents is one of the most common audit triggers.
🧾 4. Business Expenses to Track
- Office supplies and equipment
- Utilities and rent
- Professional fees (legal, accounting, consulting)
- Marketing and advertising costs
- Travel and meals (with detailed receipts)
- Vehicle expenses (logbook required)
- Home office expenses (square footage calculation)
🛡️ 5. Tips to Stay Audit-Ready
- Reconcile bank accounts monthly.
- Digitize receipts and store them securely in the cloud.
- Separate personal and business expenses.
- Use a consistent chart of accounts for categorization.
- Review financial statements quarterly.
- Work with a professional bookkeeper to ensure compliance.
✅ Why This Checklist Matters
- Evergreen resource: Useful year after year.
- Supports DIY bookkeeping and helps small business owners stay organized.
- Supports full-service clients: Shows RGB Accounting’s expertise in corporate bookkeeping.
- Audit protection: Reduces risk of penalties and reassessments.
Bookkeeping is the backbone of every successful business. By following this CRA-compliant checklist, Canadian small businesses can stay organized, maximize deductions, and file with confidence.
At RGB Accounting, we help entrepreneurs and corporations simplify bookkeeping, stay compliant, and focus on growth.
Source: CRA
Newsletters
e-Newsletter – January 2018
NewslettersEvents & SponsorshipArticles & Publications
Events & Sponsorship
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Articles & Publications
Moving to the U.S. for more affordable Real Estate
Moving to the U.S. for more affordable Real Estate? Home prices have run-up in the U.S. but are mostly more affordable than major Canadian markets. Like many real estate markets worldwide, U.S. home prices have run up during the pandemic to the point of some saying...
New Goods and Services/Harmonized Sales Tax Rules
This article intends to illustrate how the new proposed Goods and Services/Harmonized Sales Tax (GST/HST) rules are to apply to the sale of goods made on July 1, 2021, or later, by a retailer that is a non-resident of Canada and not registered for GST/HST purposes,...
When withdrawing funds early from your RRSP makes sense
Most Canadians spend their working lives socking away as much money as they can in their registered retirement savings plans (RRSPs) — often feeling guilty if they’re not maxing out the contribution limits set by the federal government. Once retirement rolls around,...
Understanding the CRA Notice of Assessment
Understanding the CRA Notice of Assessment How to object if you think the CRA is wrong Most of us have received our Notice of Assessment from the CRA for our 2020 tax returns. Mostly it is pretty much as you expected – a refund or no balance owing. But sometimes, the...
A Guide to Bank Reconciliations
One of the most overlooked steps in the accounting process is completing a bank reconciliation. We'll take you step-by-step through the process of completing bank reconciliations for your business. In this day of electronic banking, many people believe completing a...