How to keep receipts and expenses organized for tax time

Why it matters

Every business expense you can prove lowers the profit you pay tax on. If you charge HST, the receipts are also what let you claim input tax credits. A missing receipt is money left on the table.

1. Separate business from personal

Use one card or account for business spending. It makes everything easier to sort and to explain to an accountant.

2. Capture receipts the moment you get them

Paper fades and gets lost in truck door pockets. Photograph each receipt on the spot and file it under the job it belongs to. Receipts you only "mean to deal with later" are the ones that disappear.

3. Record what each one was for

Note the supplier, date, total, the tax, and the job or category: materials, fuel, tools, vehicle, subcontractors, office, insurance. Job-by-job tracking also shows you which jobs actually made money.

4. Keep a mileage log if you drive for work

If you claim vehicle costs, the CRA expects a log of business kilometres. Writing the trip down the same day is far easier than reconstructing a year of driving.

5. Track hours for your crew

If you pay people by the hour, keep each person's hours by day and by job. It protects you and them, and makes payroll straightforward.

6. Do a five-minute weekly check

Once a week, look for receipts you forgot to log and payments you have not recorded. Small catch-ups beat big clean-ups.

7. Keep your records for six years

The CRA requires you to keep business records for six years from the end of the year they relate to. The CRA also has rules about keeping electronic copies of paper records, so check its guidance or ask your accountant how to store them.

How BrightenBooks helps

Snap a receipt and BrightenBooks reads the store, date, total and HST, checks the numbers add up, and files it under the right job. It has a mileage log, crew hours, a yearly income summary, and one-tap exports for your accountant.

CRA: Keeping records

This guide is general information for small businesses in Canada, not tax or legal advice. Rules and rates change and depend on your situation, so check with the Canada Revenue Agency (CRA) or your accountant.