Audit-Proofing Your Growth: The 6-Year Rule

The CRA has the right to review your records for up to six years. If your current system involves a shoebox, an audit will be expensive and stressful. Audit-proofing starts with meticulous record-keeping using tools like Dext or Hubdoc to digitize every receipt the moment it’s issued.

The most common audit flag is "co-mingling"—mixing personal and business expenses. If you pay for personal items with your corporate card, you’re inviting a CRA business audit. Keeping a strict wall between your accounts is your first line of defense.

The Digital Accountant Method: We set up automated capture for all our clients to ensure your books are clean and defensible. By following the CRA’s record-keeping standards, you can grow your business with the confidence that you are "un-cancellable" by the tax authorities.