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Businesses owners must satisfy certain federal and provincial regulations when owning and operating a business. Business records — like invoices, deeds, receipts, tax returns, employee records, share certificates, and more — provide evidence that they have met these requirements. If you are ever in a situation where you need to show evidence of your business’ profit, expenses, or standing, it will be your responsibility to supply the documents that have this information. This legal obligation means maintaining records is an essential aspect of running any business.
For more information on what records are and why they are important, visit these pages from the Canada Revenue Agency:
While all businesses must keep some records, the exact records you are obligated to maintain is determined by several factors including:
- Business Structure
- Size
- Revenue
- Location or Geographic Spread
- Industry
These resources provide a starting place for understanding your records management obligations, but may not be comprehensive depending on your specific situation. Beyond meeting specific legal requirements (such as those set by the CRA), a more comprehensive approach would be to consider the concepts, principles, and guidelines outlined in ISO 15489 Information and documentation—the international standard for records management. Adopting these principles, along with industry-relevant best practices, can help establish a robust and compliant records management system that supports accountability and efficiency.
Business Structure
Before registering your business, you will need to determine which business structure best suits your needs. This is an important decision, as your business structure has great implications on tax liability, regulations, and your options to raise capital.
BC Registry Business Structure Wizard | This free self-paced quiz offered by BC Business Registry helps match you with the most appropriate business structure.
Choosing your business type | Created by the Government of British Columbia listing the top three business structures in the province as well as links and contact information to BC Registries.
Guide to Business Structures in Canada | This guide by Small Business Centres Ontario, lays out the four most common business structures in Canada and lists pros, cons, and potential risks for each.
Permits, licenses and regulations | Links to tools such as BizPal and the Federally Regulated Industry Sectors that help you identify the permits, licences, and regulations applicable to your business and sector.
Business Registry Documents
Registering a business allows business owners to secure a name, be officially recognized by the government, and to begin conducting affairs as a business entity.
BC Registries and Online Services | BC Registries handles all registration services for businesses, not-for-profit societies, cooperative associations, personal property and manufactured homes under one centralized account.
Businesses and incorporated companies | A centralized page upkept by the Government of British Columbia providing links to several registration resources for business owners. Access information on registration of specific business structures, business numbers, and out-of-province companies here.
Canadian Intellectual Property Office (CIPO) | You may have a logo, signature design, or product that you wish to protect through a trademark or copyright. CIPO offers several resources to learn about registering for intellectual property protection.
Tax Documents
Canada Revenue Agency | The Canada Revenue Agency is the federal government branch that oversees taxes, benefits, and related programs. As taxes are one of the only certain things in life, being prepared to provide accurate and authentic business records to the CRA is highly beneficial for claiming tax deductions, credits, and determining your tax obligation.
CRA Liaison Officer service | CRA also offers free tax help for small business owners and self-employed individuals. A visit from a Liaison Officer is 100% confidential: the information you choose to discuss with them will not be shared with other areas of the CRA, or anyone else.
Bookkeeping Essentials Canada | Bookkeeping refers to the management of documents specifically related to everyday financial operations. This website aims to provide free information to sole proprietors and home-based business owners about best bookkeeping practices.
WeBC Taxes | This collection of resources provides a range of information about business taxes, credits, and best practices for business owners with a focus on women entrepreneurs.
Tax Deductions and Credits
Business owners can reduce their tax obligation through tax deductions and credits. Tax deductions reduce a business’ overall taxable income whereas tax credits directly reduce a business’ tax liability. The Government of Canada stresses the importance of documentation when claiming deductions for business expenses:
“You have to support business expense claims with a sales invoice, an agreement of purchase and sale, a receipt, or some other voucher that supports the expenditure. If you pay cash for any business expenses, be sure to get receipts or other vouchers. Receipts should include the vendor's name and the date.”
For more on tax deductions and credits visit the pages below:
Failing to Maintain Records
Failure to maintain appropriate business records can potentially lead to consequences for you and your business. The dreaded audit is one example of how failing to maintain proper documentation can be a serious and costly mistake. Natural or human-made disasters can also lead to information loss that negatively impacts business operations. Proactively preparing for these events can help alleviate stress and data loss in these scenarios.
Government Audits
Canada Revenue Agency Business audits | Provides information about the business audit process and an owner’s rights and responsibilities during an audit. Check out the three part video series on the right hand-side of the page for a more visual learning experience.
Province of British Columbia Tax audits | A page for BC residents with information on the audit process, how to prepare for an audit, and the aftermath of an audit. Complete with a video providing insight into audits.
Ministry of Finance Tax Bulletin: Audits | A handout produced by the Government of BC which includes a helpful flowchart of the audit process and retention guidelines around specific documentation that may be asked for during an audit.
Emergency Preparedness
An Emergency Preparedness Plan is a written document detailing the appropriate course of action when dealing with an emergency or natural disaster. Once filled out, the plan is an important business record that needs to be managed and reviewed at regular intervals.
PreparedBC: Emergency Plan for Small Businesses | This resource provides several worksheets to help create an emergency plan, including identifying essential records and points of contact.
Developing your IT recovery plan | This page created by the Canadian Centre for Cyber Security focuses exclusively on digital records and storage. Being prepared for digital emergencies, like hard drive failures or cyberattacks, is increasingly important as more and more business records are produced digitally.
Institute for Business & Home Safety: Open for Business | IBHS is a U.S. based research organization that has created an open-source guide for business continuity after disaster. You will find several forms that can be used to create a business emergency plan.
Next: Retention Schedules