What are the mandatory deadlines for keeping accounting documents and invoices in Quebec?

It's difficult to keep track of archives overflowing with illegible invoices and old accounting documents from your company.
There are documents that are important to the Quebec tax administration and must be kept carefully. But how long should they be kept and why?

Accounting documents to keep for at least 6 years?
For many years, Canadian businesses have been required to keep certain accounting records for a period of at least 6 years. The Income Tax Act allows these documents to be kept in paper or electronic form. You can use tax and accounting software for this purpose.
Here are some examples of accounting records that you must keep:
• Daily income statements with invoices and cash register tapes.
• Daily expense statements with void or cancelled cheques, as well as expense receipts.
• A record of travel and expenses related to the company's vehicles, with supporting documents.
• Corporate credit card bills.
• Records containing employees' names, wages, and payroll deductions.
It is therefore necessary to keep all these documents for a period of 6 years. The calculation of this period begins at the end of the tax year to which the documents relate. For example, tax returns for the year 2022 must be kept up to and including 2028.
Why keep your accounting records for six years?
During this period, businesses must be able to provide all the information and documents requested by the Canada Revenue Agency (CRA) for the federal part or by Revenu Québec for the provincial part. In the event of an audit of your corporate tax return or tax return, these tax bodies may need supporting documents.
It is also mandatory to keep all supporting documents to verify the information in your records, such as business invoices (income and expenses).

Are there accounting documents to be kept indefinitely for companies?
Although the usual retention period for corporate documents, whether accounting or tax, is 6 years, it is recommended that certain other documents be kept for the entire life of the company.
Here are some examples of business documents that you should keep indefinitely:
• Notarial deeds.

• Minutes of board meetings.

• Share certificates and share transfers.

• Any other document justifying an entry in the general ledger.
Finally, if your company is going to be dissolved, it is essential to keep the originals of these documents for at least two years after the dissolution.

Are there any records to keep upon request by government entities?
There are exceptional situations where the Canada Revenue Agency (CRA) or Revenu Québec may advise you to keep certain business documents beyond the legal period of 6 years.
If this applies to you, a representative of the tax authority will contact you directly or send you a letter by registered mail to inform you of this requirement. During this communication, the nature of the company document and the retention period requested will be specified to you.

How to find an accountant to help you manage your accounting documents?
The retention of corporate documents is a major concern for Quebec companies looking to comply with administrative requirements.
In general, it is recommended to keep corporate documents for at least 6 years, but there are exceptions that require them to be kept for a longer period of time, or even indefinitely.
Knowing your tax obligations allows you to meet the needs of the Canada Revenue Agency (CRA) and Revenu Québec in terms of records. However, it may be wise to have accountants accompany you to help you better understand all of your business obligations.
If you have any questions about tax laws and regulations in Quebec and Canada, do not hesitate to contact us if you want to find an accountant adapted to your reality as an entrepreneur to help you in this process. https://www.bankeo.ca/