Losing accounting records can be a nightmare as any business that has suffered through it can attest. The result of such a loss includes potential conflicts with the Canada Revenue Agency, which requires physical proof of business income and expenses. Fortunately, these documents can be either in paper or electronic form, which gives your company two methods of storing important business data.
Retaining paper copies requires extra space, preferably offsite, and protection from hazards such as fire or water damage. Electronic documents stored in QuickBooks Online can be easily backed up in the cloud, where retrieval is a few clicks away. With most all Canadian businesses using some form of computer-based operations, you want to make creating duplicate invoices and payment records a mandated process in your own organization.
Some storage methods involve paper files or performing physical computer backups each day, storing that data on a portable hard drive, and taking that drive home or locking it in a safe. Cloud-based accounting software stores copies of all vital business data on remote servers. These servers are highly secure and much less prone to hackers or physical damage, ensuring your documents can be produced in the event of a CRA audit. Retaining multiple copies of accounting files in the cloud for tax purposes saves time and gives you peace of mind. Remember to retain all business records, regardless of format, for six years from the date your tax return was filed, in case the CRA comes calling.