Keeping daycare records

You have to record your income and expenses, and keep bills, receipts, bank statements, and cancelled cheques that relate to your daycare. Your records should be complete, organized, and filed by year.

Good records will help reduce the time you spend preparing your income tax return. They can remind you of expenses you can deduct which you might otherwise overlook. Good records can also prevent problems you may have if we audit your returns.

Monthly credit card statements are good reminders of expenses, although you have to support them with individual invoices. In the same way, a personal chequing account may be convenient because you may get a monthly statement from your financial institution. Regardless of what kind of account you have, we suggest you mark the date, amount, and purpose on all cheque stubs when you write the cheques.

Do not send us your records with your income tax return. However, keep them in case we ask to see them later. For more information on keeping records, see Guide RC4409, Keeping Records, or Keeping records.

Retention period and early destruction of records

You must keep your records for at least six years from the end of the tax year to which they relate. There are some exceptions to this rule; for more information, see Guide RC4409, Keeping Records. If you want to destroy your records before the end of the six year period, you have to get written permission from your tax services office. To do this, either use, Form T137, Request for Destruction of Records or prepare your own written request. For more information, see Information Circular IC78-10R5, Books and Records Retention/Destruction.

Forms and publications

• Guide RC4409, Keeping Records
• Guide T4002, Business and Professional Income
• Booklet P134, Using Your Home for Daycare
• Form T137, Request for Destruction of Records
• Information Circular IC05-1R1, Electronic Record Keeping
• Information Circular IC78-10R5, Books and Records Retention/Destruction

Related topics

• Business records
• Keeping records