At a Glance
While keeping all business records is important, dealing with your receipts professionally may require you to figure out which ones to keep and which to discard.
Businesses may want to maintain receipts that they can claim against their incomes and taxes. Individuals, on the other hand, might want to retain receipts for items return but rarely for record-keeping.
In today’s tech-controlled business environment, consider shunning old-school modes of storing receipts in bins and envelopes. You want to back them up digitally to ensure that your data remains intact indefinitely. There are several apps to help you with that - your accountant may also recommend suitable receipt-tracking tools depending on your type of business.
What dealing with receipts means for your business
Receipts represent proof of financial transactions.
And these financial transactions help you monitor the progress of your business, file your tax returns, track deductible expenses, and prepare financial statements for decision-making.
On top of that, the CRA requires that businesses maintain receipts for at least six years after filing tax returns. Failure to follow such government requirements can lead to penalties or a CRA audit.