You are required by law to keep records of all your transactions to support your income and expenses.
On this page:
Keep a daily record of your income and expenses. We do not issue record books or suggest any type of book or set of books. There are many record books and bookkeeping systems available. For example, you can use a book that has columns and separate pages for income and expenses.
Keep separate records for each business you run. If you want to keep computerized records, make sure they are clear and easy to read.
Do not send your records with your income tax return. However, keep them in case we ask to see them later.
Keep track of the gross income your business earns.
Gross income is your total income before you deduct the any expenses, including those associated with the goods sold.
Your income records should show all the following information concerning your income:
- the amount and date received
- the source of the income
Record the income whether you received cash, property, or services.
Support all income entries with original documents. Original documents include:
- sales invoices
- cash register tapes
- bank deposit slips
- patient cards
- fee statements
For an example of how to record your income see : Sales Journal - Month of July
Always get receipts or other vouchers when you buy something for your business.
The receipt or other voucher should show:
- the date of the purchase;
- the name and address of the seller or supplier;
- the name and address of the buyer; and
- a full description of the goods or services; and
- the vendor's business number if they are a GST/HST registrant.
Make sure the seller or supplier describes the goods or services on the receipt. However, sometimes that is not possible, as with a cash register tape. In such a case, you should write a description of the goods or services on the receipt or other voucher, or in your expense journal.
It is also possible that a seller or supplier may not provide you with a receipt. In such a case, write the name and address of the seller or supplier, the amount paid for the goods or services, the date you made the payment and the details of the transaction in your expense journal.
For an example of how to record your expenses, see Expense Journal - Month of July
Keep a record of the properties you bought and sold. This record should show who sold you the property, how much you paid for it, and the date you bought it. This information will help you calculate your claim for capital cost allowance and other amounts.
If you sell or trade a property, show the date you sold or traded it and the amount of the payment or credit from the sale or trade in.
Forms and publications
- Guide T4002, Business and Professional Income
- Form T137, Request for Destruction of Records
- Information Circular IC78-10, Books and Records Retention/Destruction
- Information Circular IC05-1, Electronic Record Keeping
- Guide RC4022, General Information for GST/HST Registrants
- Date modified: