Keeping Your Business Records

You are required by law to keep records of all your transactions to back up your income and expenses.

If you do not keep the required information and do not have supporting documents or proof:

■ The Canada Revenue Agency may determine your income using other methods; and
■ The Canada Revenue Agency might not allow the expenses you deducted.

There are penalties for not keeping proper records and not providing CRA information or access to your records when asked.