How long do I need to keep my receipts?

If audited, you need proof of purchase and payment.

Although we don’t need to see every receipt you keep, you need to keep every business expense receipt for seven years. A physical copy is OK, but we recommend making a digital counterpart (more on digitizing below). 

If you’re audited, the CRA will request two things: 

1. Proof of purchase (receipt) 
2. Proof of payment (bank or credit card statement)

So make sure you have both. Oftentimes, they’ll ask for your bank statement and request 10 receipts from your list of expenses. 

We will need to see receipts for anything that will be considered an asset of the company: equipment, vehicles, computers, etc. We’ll also need to see any transactions that are unusual, significant, or paid by cash or personally.