Keeping accounting records is a legal obligation for all SMEs in Quebec. Whether you are self-employed, the owner of a business corporation or a partner in an ENC, your records must be accurate, complete and accessible at all times. This handy guide explains which records are mandatory, how long to keep them, and how to avoid costly mistakes during a tax audit.
An accounting register is a document - paper or digital - in which a company methodically records all its financial transactions. According to the Canada Revenue Agency, records include "accounts, agreements, books, charts, forms, invoices, letters, vouchers and any other evidence containing information."
For a Quebec SME, keeping its records properly is used to:
Every SME in Quebec, regardless of its legal form, must keep the following registers up to date. Rigorous bookkeeping is the basis of sound business accounting.
The general ledger is the central record of your company. It aggregates all transactions categorized by account : assets, liabilities, equity, income, and expenses. Each entry must include the date, amount, description, and reference to the source document (invoice, receipt, bank statement).
This record records every dollar your business earns. For each sale, you should note:
Symmetrical to the sales journal, this register documents all the money outflows. According to Revenu Québec, each expense must be supported by a supporting document including:
If you have employees, you must keep a detailed record that includes gross and net salaries, source deductions (federal and provincial tax), QPP, Employment Insurance and QPIP contributions, as well as taxable benefits. This register is essential for filing T4 and Relevé 1 slips at the end of the year.
All businesses registered for tax purposes must record the GST and QST collected on sales and paid on purchases. This register allows you to correctly calculate your rebates and claim your input tax credits (ITCs) and input tax refunds (ITRs).
This register lists all the company's durable assets (vehicles, equipment, furniture, computer equipment) with their acquisition cost, the date of purchase and the applicable depreciation rate according to the capital cost allowance (CCA) classes.
The obligations vary depending on your legal form. Here is a summary by type of company.
| Registry | Self-employed | Corporation (inc.) | SENC / General partnership |
|---|---|---|---|
| General ledger | Required | Required | Required |
| Sales Journal | Required | Required | Required |
| Purchase Log | Required | Required | Required |
| Payroll register | If used | Mandatory (even for the shareholder-manager) | If used |
| GST/QST Register | If registered (CA > $30,000) | Required | If registered (CA > $30,000) |
| Capital asset register | If depreciable property | Required | If depreciable property |
| Minute book | Not required | Mandatory (Board resolutions) | Not required |
| Register of shareholders | Not required | Required | Not required |
| Tax Returns | Q1 / TP-1 (April 30) | Q2 / CO-17 (6 months after year-end) | T5013 / TP-600 |
Business corporations have additional obligations: minute book (resolutions, decisions of the board of directors), register of shareholders and register of directors. These documents are separate from accounting records but just as important in the event of an audit or business transaction.
According to Revenu Québec and the CRA, you must keep your records and supporting documents for a minimum of 6 years after the end of the last tax year to which they relate. To learn more, see our article on keeping accounting records.
Here are the durations to be respected:
Failure to have adequate books and records can lead to serious consequences: penalties of up to 50% of the balance owing in taxes, interest on arrears, thorough 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 it costs to hire an accountant in Quebec.
Bankeo matches your SME with a specialized accountant from among 1,500+ firms in Quebec for free. More than 12,000 entrepreneurs have already found their ideal accountant.
Find my accountantBoth methods are accepted by Revenu Québec and the CRA. However, most SMEs benefit from using accounting software to automate record keeping. Here's a detailed comparison to help you choose.
| Criterion | Manual Records (Excel/Paper) | Accounting software |
|---|---|---|
| Cost | Free to Low (spreadsheet) | $20 to $100/month depending on the software |
| Risk of error | High (manual entry) | Low (automation, validation rules) |
| Time required | 4 to 8 hours/week for an average SME | 1 to 3 hours/week |
| Bank reconciliation | Manual and tedious | Automatic (bank connection) |
| Tax Reports | To be created manually | Automatically generated (GST/QST, T2, etc.) |
| Compliance | Risk if the structure is unsuitable | Meets Canadian standards |
| Accounting collaboration | Sending files by email | Real-time shared access |
| Best for | Très petites entreprises (< 10 transactions/mois) | Any SME with regular activity |
To discover the options available, see our comparison of the best accounting software in Quebec in 2026. Solutions such as QuickBooks, Sage and Wave offer features tailored to Quebec SMEs, including GST/QST management and compliant reporting.
After matching more than 12,000 entrepreneurs with accountants since 2023, Bankeo has identified the mistakes that come up most often. Here they are, along with tips on how to avoid them. For a complete list, see our article on the most common accounting errors.
Using a single bank account for personal and business expenses makes record-keeping extremely complex. Open a dedicated business account as soon as you start your business.
Postponing the entry of transactions until the end of the month (or worse, at the end of the year) multiplies the risk of forgetfulness and error. Record your transactions at least weekly.
A register without supporting documents has no value during a tax audit. Scan your receipts as soon as you receive them and categorize them.
Expenses paid in cash (parking, supplies, business meals) are often forgotten. Use an expense tracking app or a dedicated notebook.
Monthly bank reconciliation can detect errors, forgotten transactions, or fraud. Without this step, your records may diverge from reality.
Even small purchases include GST/QST recoverable. Every unclaimed tax credit is money lost to your business.
A poorly structured chart of accounts makes the classification of transactions confusing and complicates your accountant's job. Have it set up by a professional from the start.
Keeping your own records is possible for a self-employed worker with few transactions. But there are several signs that it's time to outsource this task to a qualified bookkeeping professional or accountant :
The Ordre des CPA du Québec recommends consulting a professional as soon as the complexity of your operations exceeds your accounting skills. A good accountant doesn't just keep your records: they use them to optimize your taxes and advise you in your business decisions.
An accounting clerk charges between $45 and $75/hour, an accounting technician between $75 and $125/hour for bookkeeping, while a CPA charges between $125 and $300/hour for a mandate that includes record keeping, tax filing and strategic advice. For an average SME, plan a budget of $200 to $800 per month depending on the complexity. Find out the details in our guide to accounting records for SMEs.
Bankeo matches you free of charge with an accountant specialized in your industry. You choose the number of accountants you want to meet.
Find my accountantHere are the steps to set up an effective accounting records system for your SME:
All SMEs in Quebec must keep at least one general ledger, a sales journal, a purchase journal, a payroll register (if employed), a GST/QST register (if registered) and a capital asset register. Corporations must also keep a minute book and a register of shareholders.
Records and supporting documents must be kept for a minimum of 6 years after the end of the last taxation year to which they relate. In the event of a tax dispute, the retention period must be extended until the case has been fully resolved.
Yes. Revenu Québec and the CRA accept records in electronic format, as long as they are legible, accessible, and printable upon request. Recognized accounting software (QuickBooks, Sage, Wave) produces records that comply with legal requirements.
Penalties can be up to 50% of the balance of tax owing, plus accrued interest. The CRA may also deny deductions or credits claimed if the supporting documents are missing. In serious cases, criminal proceedings are possible.
It is not mandatory, but strongly recommended as soon as your turnover exceeds $100,000, you have employees or capital assets. An accounting technician or CPA ensures compliance and maximizes your tax deductions.
The two terms are often used interchangeably. Bookkeeping refers to the daily recording of transactions, while accounting records encompass all financial records kept by the company (books, invoices, contracts, declarations).
Organize your documents by fiscal year, then by category (income, expenses, payroll, taxes, fixed assets). Keep digital originals in a secure system with backup. In the event of an audit, an accountant can accompany you to present your records in an organized manner.
The basic obligations are the same (general ledger, sales and purchase journals), but the self-employed person does not have to keep a minute book or a shareholder register. He reports his income on the T1/TP-1 form rather than the T2/CO-17.
The software most used by Quebec SMEs are QuickBooks (the most popular), Sage (ideal for payroll), Wave (free for invoicing) and Acomba (designed in Quebec). The choice depends on your size, budget and specific needs.
An accounting clerk charges between $45 and $75/hour, an accounting technician between $75 and $125/hour for bookkeeping. A CPA charges between $125 and $300/hour for a full mandate. For an SME, the monthly budget varies from $200 to $800 depending on the volume of transactions and complexity.
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