Maintaining accounting records is a legal requirement for all small and medium-sized businesses in Quebec. Whether you are self-employed, the owner of a corporation, or a partner in a general partnership, your records must be accurate, complete, and accessible at all times. This practical guide explains which records are required, how long you must keep them, and how to avoid costly mistakes during a tax audit.
An accounting record is a document—whether paper or digital—in which a business systematically records all of its financial transactions. According tothe Canada Revenue Agency, records include “accounts, agreements, books, charts, forms, invoices, letters, supporting documents, and any other evidence containing information.”
For a Quebec-based small or medium-sized business, keeping accurate records serves to:
Every small and medium-sized business in Quebec, regardless of its legal structure, must maintain the following records. Rigorous record-keeping is the foundation of sound business accounting.
The general ledger is your company’s central record. It contains all transactions categorized by account: assets, liabilities, equity, revenue, and expenses. Each entry must include the date, amount, description, and reference to the source document (invoice, receipt, bank statement).
This ledger records every dollar your business earns. For each sale, you must record:
Mirroring the sales journal, this ledger records all cash outflows. According to Revenu Québec, each expense must be supported by a supporting document that includes:
If you have employees, you must maintain detailed records that include gross and net wages, payroll deductions (federal and provincial income tax), contributions to the RRQ, Employment Insurance, and the RQAP, as well as taxable benefits. These records are essential for preparing T4 slips and Relevé 1 forms at the end of the year.
Every business registered for tax purposes must keep a record of the GST and QST collected on sales and paid on purchases. This record allows you to accurately calculate your rebates and claim your input tax credits (ITCs) and input tax refunds (ITRs).
This inventory lists all of the company's durable assets (vehicles, equipment, furniture, and computer hardware) along with their acquisition cost, purchase date, and the applicable depreciation rate based on the categories of the capital cost allowance (CCA).
Requirements vary depending on your legal structure. Here is a summary by business type.
| Register | Self-employed person | Corporation (Inc.) | SENC / General Partnership |
|---|---|---|---|
| General Ledger | Required | Required | Required |
| Sales Journal | Required | Required | Required |
| Purchasing Log | Required | Required | Required |
| Payroll Record | If employees | Required (even for the shareholder-manager) | If employees |
| GST/QST Registry | If registered (revenue > $30,000) | Required | If registered (revenue > $30,000) |
| Fixed Assets Register | If depreciable assets | Required | If depreciable assets |
| Minutes Book | Not required | Required (Board resolutions) | Not required |
| Shareholder Register | Not required | Required | Not required |
| Tax returns | T1 / TP-1 (April 30) | Q2 / FY2017 (6 months after the end of the fiscal year) | T5013 / TP-600 |
Corporations have additional obligations: a book of minutes (resolutions, board decisions), a shareholder register, and a directors’ register. These documents are separate from the accounting records but are just as important in the event of an audit or a corporate transaction.
According to Revenu Québec andthe CRA, you must keep your records and supporting documents for at least six years after the end of the last tax year to which they relate. For more information, see our article on retaining accounting records.
Here are the time limits to follow:
The lack of proper accounting records can have serious consequences: penalties of up to 50% of the outstanding tax balance, interest on overdue payments, in-depth tax audits, and even criminal prosecution in the most serious cases. A professional accountant can help you get your records in order and avoid these situations. Find out how much an accountant’s services cost in Quebec.
Bankeo connects your small business with a specialized accountant from among 1,500+ firms in Quebec—free of charge. Over 12,000 entrepreneurs have already found their ideal accountant.
Find my accountantBoth methods are accepted by Revenu Québec and the CRA. However, most small and medium-sized businesses benefit from using accounting software to automate their record-keeping. Here is a detailed comparison to help you choose.
| Criterion | Manual records (Excel / paper) | Accounting software |
|---|---|---|
| Cost | Free to low-cost (spreadsheet) | $20 to $100 per month, depending on the software |
| Risk of error | High (manual entry) | Low (automation, validation rules) |
| Time required | 4 to 8 hours per week for an average small business | 1 to 3 hours per week |
| Bank reconciliation | Manual and tedious | Automatic (bank connection) |
| Tax reports | To be created manually | Generated automatically (TPS/TVQ, T2, etc.) |
| Compliance | Risk if the structure is unsuitable | Complies with Canadian standards |
| Accounting Services | Sending files via email | Real-time shared access |
| Ideal for | Très petites entreprises (< 10 transactions/mois) | Any small or medium-sized business with regular operations |
To explore your options, check out our comparison of the best accounting software in Quebec for 2026. Solutions like QuickBooks, Sage, and Wave offer features tailored to Quebec SMEs, including GST/QST management and compliant reporting.
Having connected more than 12,000 entrepreneurs with accountants since 2023, Bankeo has identified the most common mistakes. Here they are, along with tips on how to avoid them. For a complete list, check out our article on the most common accounting mistakes.
Using a single bank account for both personal and business expenses makes bookkeeping extremely complicated. Open a dedicated business account as soon as you start your business.
Putting off entering transactions until the end of the month (or worse, the end of the year) increases the risk of forgetting things or making mistakes. Make sure to record your transactions at least once a week.
A record without supporting documentation is worthless during a tax audit. Scan your receipts as soon as you receive them and file them by category.
Expenses paid in cash (parking, supplies, business meals) are often overlooked. Use an expense tracking app or a dedicated notebook.
Monthly bank reconciliation helps identify errors, missed transactions, or fraud. Without this step, your records may not reflect the actual situation.
Even small purchases include recoverable GST/QST. Every unclaimed tax credit is money lost to your business.
A poorly structured chart of accounts makes it difficult to classify transactions and complicates your accountant’s work. Have a professional set it up from the start.
Self-employed individuals with few transactions can manage their own records. However, there are several signs that indicate it’s time to entrust this task to a professional bookkeeper or a qualified accountant:
The Ordre des CPA du Québec recommends consulting a professional as soon as the complexity of your operations exceeds your accounting expertise. A good accountant does more than just maintain your records: they use them to optimize your tax situation and advise you on your business decisions.
An accounting clerk charges between $45 and $75 per hour, an accounting technician between $75 and $125 per hour for bookkeeping, while a CPA charges between $125 and $300 per hour for services that include record-keeping, preparing tax returns, and providing strategic advice. For an average small business, budget $200 to $800 per month, depending on complexity. Find out more in our guide to accounting records for small businesses.
Bankeo connects you for free with an accountant who specializes in your industry. You choose how many accountants you’d like to meet.
Find my accountantHere are the steps to set up an effective accounting system for your small business:
Every small and medium-sized business in Quebec must maintain, at a minimum, a general ledger, a sales journal, a purchases journal, a payroll register (if there are employees), a GST/QST register (if registered), and a fixed assets register. Corporations must also maintain a minutes book and a register of shareholders.
Records and supporting documents must be retained for at least six years after the end of the last tax year to which they relate. In the event of a tax dispute, the retention period must be extended until the matter is fully resolved.
Yes. Revenu Québec and the CRA accept electronic records, provided they are legible, accessible, and printable upon request. Recognized accounting software (QuickBooks, Sage, Wave) generates records that meet legal requirements.
Penalties can amount to as much as 50% of the tax balance owed, plus accrued interest. The CRA may also deny claimed deductions or credits if supporting documentation is missing. In serious cases, criminal prosecution is possible.
It’s not mandatory, but it’s strongly recommended once your revenue exceeds $100,000, or if you have employees or fixed assets. An accounting technician or CPA ensures compliance and helps you maximize your tax deductions.
The two terms are often used interchangeably. Bookkeeping refers to the daily recording of transactions, while accounting records encompass all the financial documents maintained by the company (ledgers, invoices, contracts, and tax returns).
Organize your documents by tax year, then by category (income, expenses, payroll, taxes, fixed assets). Store the digital originals in a secure system with backups. In the event of an audit, an accountant can assist you in presenting your records in an organized manner.
The basic requirements are the same (general ledger, sales and purchase journals), but self-employed individuals are not required to maintain minutes or a shareholder register. They report their income on Form T1/TP-1 rather than Form T2/CO-17.
The most commonly used software among Quebec SMEs is QuickBooks (the most popular), Sage (ideal for payroll), Wave (free for invoicing), and Acomba (developed in Quebec). The choice depends on your company’s size, your budget, and your specific needs.
An accounting clerk charges between $45 and $75 per hour, while an accounting technician charges between $75 and $125 per hour for bookkeeping services. A CPA charges between $125 and $300 per hour for a full-service engagement. For an SME, the monthly budget ranges from $200 to $800 depending on the volume of transactions and the complexity of the work.
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