Like it or not, accounting is an integral part of running a business . And with it comes a whole host of documents to sort, classify, store, scan, and understand . This is what we call "accounting paperwork." For an entrepreneur, a buyer, or a self-employed person, knowing how to manage this documentation effectively is essential to staying compliant, avoiding tax errors... and sleeping peacefully.
Here is a clear guide to organizing your accounting paperwork , avoiding oversights, and implementing sustainable best practices .
Why accounting management is crucial
Poor paperwork management can lead to:
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Delays or errors in tax returns
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Loss of money due to improperly claimed or undocumented expenses
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Adjustments in the event of a tax audit
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A lack of clear vision of your real profitability
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Delays or blockages in a business sale
On the contrary, rigorous management allows you to:
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Track your performance
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Save time when producing financial statements
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Optimize your deductions
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Meet legal obligations (Revenu Québec, ARC, REQ)
What accounting documents should be kept?
|
Document type |
Examples |
Retention period |
|---|---|---|
|
Sales invoices |
Customer invoices, delivery notes |
6 years minimum |
|
Purchase invoices |
Suppliers, subscriptions, miscellaneous costs |
6 years minimum |
|
Bank statements and credit cards |
Monthly statements, transfer confirmations |
6 years minimum |
|
Tax returns |
GST/QST, DAS, corporate tax, notice of assessment |
6 years minimum |
|
Contracts |
Location, suppliers, employees, consultants |
As long as the contract is in force + 6 years |
|
Payroll and employees |
Timesheets, T4s, statement 1s, vacation records |
6 years minimum |
|
Legal documents |
NEQ, statutes, shareholders' agreement, minutes |
Permanently |
In Quebec, Revenu Québec requires that documents be kept for at least 6 full years following the year to which they relate.
Paper or digital support?
For several years, governments have accepted digital documents , provided that:
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The document is legible, complete and faithful
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It should be archived in a standard format (PDF, JPG, PNG, etc.)
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It is organized in a logical manner and accessible when requested
Use a secure cloud storage service (Google Drive, OneDrive, Dropbox Pro) or accounting software with integrated archiving (QuickBooks, Zoho Books, Sage).
Best practices for efficiently managing your accounting paperwork
1. Centralize everything in one place
Avoid receipts in your pockets, photos on your phone, and forgotten emails. Use a central digital file by month or expense type.
2. Scan your receipts upon receipt
Get into the habit of scanning or photographing your receipts as you receive them, especially if you still use paper formats.
3. Sort by month AND by type
Example :
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2025 > February > Expenses > Suppliers
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2025 > February > Revenue > Customer invoices
4. Use accounting software
It simplifies management, automates invoicing, connects your bank accounts, and lets you consolidate everything.
5. Work with an accountant or accounting technician
Even if you run a small business, monthly or quarterly support will save you time… and penalties .
Recommended Frequency of Accounting Tasks
|
Stain |
Suggested frequency |
|---|---|
|
Sort and scan invoices |
Weekly |
|
Reconcile bank accounts |
Monthly |
|
Produce tax reports |
Quarterly (or monthly depending on threshold) |
|
Prepare payroll |
Weekly or bi-monthly |
|
Prepare financial statements |
Quarterly or annually |
|
Review with the accountant |
Quarterly or annually |
Frequently Asked Questions – Accounting Paperwork
Can I keep everything digitally only?
Yes. As long as the documents are legible, complete, and accessible, paper is no longer required. Be sure to make backup copies .
Can I use a simple Google Drive folder to organize everything?
Yes, provided the tree structure is clear and the files are well named. E.g.: 2025-03-Invoice-Telus.pdf
How long should I keep tax returns (QST/GST)?
6 years after the end of the fiscal year in question.
What if I lose my documents?
You could be penalized if you are audited . This is why backup, organization and consistency are the 3 pillars of good management.
Should I keep receipts for small expenses (e.g. $5)?
Yes, if you claim a tax deduction. Without proof, the expense may be denied .
Conclusion: Good paperwork management is a healthy business
Accounting management should never be a hasty task. Organized from the start, it allows you to track your profitability, stay compliant, better plan your decisions, and prepare for a sale or financing more easily .
At trnsfr , we support entrepreneurs and buyers in structuring their business , with management and evaluation tools and professional document templates.
