A receipt can feel unimportant after a purchase is entered into a spreadsheet. Months later, it may be the clearest evidence of what the business bought, when it was bought, how much was paid and which taxes appeared on the transaction.

For Canadian owners, keeping receipts is part of maintaining complete supporting records—not simply a year-end cleanup task.

The general six-year rule

The Canada Revenue Agency generally says required records and supporting documents must be kept for six years from the end of the last tax year they relate to.

The starting point matters. It is not normally six years from the purchase date. For an individual, the tax year is generally the calendar year. For a corporation, it is the corporation's fiscal period.

There are exceptions. Some records may need to be kept longer or indefinitely, including certain documents connected with long-term property or ownership history. Late-filed returns can also affect the retention period.

Review the CRA's current retention guidance for your situation.

What counts as a record?

Supporting information may include:

• supplier and sales invoices;
• receipts;
• contracts;
• bank and credit-card statements;
• proof of payment;
• expense reports;
• mileage logs;
• payroll and contractor records;
• correspondence explaining a transaction; and
• documents supporting GST/HST reporting.

A bank transaction proves that money moved. It may not explain what was purchased, why it was a business cost or whether the invoice contained the information needed for a claim.

Can receipts be stored digitally?

The CRA recognizes electronic records, but they must remain readable, reliable and available when required. Scanning is useful only if the image is complete and retrievable years later.

A dependable digital record should show the merchant, transaction date, amount, currency, tax details, what was purchased and the business purpose when it is not obvious.

Do not crop away the supplier name, date, total or tax information.

Do not rely on one device

A phone can be lost and a laptop can fail. A reliable process should include:

1. prompt capture;

2. connection to the related expense;

3. private, access-controlled storage;

4. appropriate backups; and

5. periodic retrieval and export tests.

Database backups may protect expense metadata without independently preserving every stored image. Confirm what your provider protects.

Organize receipts so they remain useful

Link each document to structured details:

• business;
• supplier;
• date;
• amount;
• category;
• payment account;
• business purpose; and
• related bank transaction.

Owners with several companies should never rely on one undifferentiated receipt folder.

What if a receipt is missing?

Do not invent one. Record the issue while the transaction is familiar. Collect available evidence such as an invoice copy, order confirmation, bank record or correspondence, then ask your accountant how the item should be handled.

A practical routine

• Capture receipts during the week.
• Review unreadable images every Friday.
• Match receipts to transactions monthly.
• Keep uncertain items on a follow-up list.
• Confirm retention and backup policies annually.

SilaTrail helps connect receipts, expenses, bank review and monthly follow-up. It organizes supporting information but does not decide whether an expense is deductible.

Explore receipt capture or start a 14-day trial.