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Cloud bookkeeping means your books live online instead of in a spreadsheet on one laptop, and the CRA accepts electronic records. It still wants them kept for six years from the end of the last tax year they relate to. That’s the number that should shape how you set one up.
What does cloud bookkeeping change for a Canadian business?
Less than the ads suggest. The tax rules stay the same. You still record sales, expenses, payroll and GST/HST, and you still answer to the same deadlines. What changes is where the records sit and who can reach them, so your bookkeeper, your accountant and you can all look at the same numbers.
We haven’t tested or ranked any product, and we can’t speak to prices or features of any named service. QuickBooks Online is one example of the category, and that’s all this page says about it. Pick on how well it matches your work.
What does the CRA say about electronic records?
The CRA’s pages say records can be kept on paper or in electronic form. You may convert paper documents into electronic files, and destroy the paper after imaging, if you follow its rules. Backups of electronic files are part of the deal. The detailed rules sit in Information Circular IC05-1, so read it before you shred a drawer of receipts.
| Item | Figure |
|---|---|
| How long to keep records | 6 years from the end of the last tax year they relate to |
| GST/HST small supplier threshold | $30,000 of taxable sales |
| Corporate T2 return due | 6 months after the tax year end |
| Ontario HST rate | 13% |
What should your online books get right?
Sales tax first. Say you invoice $2,500 in Ontario. The GST/HST calculator shows $325 of HST, so the customer pays $2,825. Your books should split that $325 from your revenue, because it’s not yours. Miss that split and your income looks $325 higher than it is.
Payroll next. If you pay staff, the payroll remittance calculator estimates what you send the CRA each period. Good software adds the employer share and shows the amount owing. A tool that doesn’t is a spreadsheet with a login.
Then profit. If you run a corporation, the books feed your T2. Try a $100,000 profit in Ontario in the corporate tax calculator: about $11,696 for a calendar 2026 year, with Ontario’s small business rate changing on 1 July 2026.
How do you choose one without trusting a sales page?
Try it with a month of your own transactions. Can you import your bank feed and match a payment to an invoice in under a minute? Can you get every record out if you leave? Where is your data stored, and who is the contact when it fails?
Ask your accountant which system they can work in, because that one question can save you a year of re-keying numbers by hand after you’ve already paid for a subscription you then have to abandon.
Also look at what’s included in the price on the day you sign, then again on the renewal date. We couldn’t confirm any prices, so we can’t tell you which plan is cheap.
Where cloud bookkeeping goes wrong
Automation makes errors faster. Bank feeds categorise a rent payment as a supplies purchase, and nobody notices until year end. Someone still has to look each month. A bookkeeper or you, it doesn’t matter, but pick one.
Keep your own copy of the records. If a subscription lapses, you still owe six years of access. Export a full set each year and store it where you can find it.
Check the tools’ tax settings too. A tax rate set for one province will misstate sales in another, which matters when you sell across provinces. Our own calculators have limits in this area, so treat their numbers as estimates and compare to your return.
Where the numbers come from
Record keeping rules come from the Canada Revenue Agency’s keeping records pages. The small supplier threshold comes from the CRA’s GST/HST registration page, and rates from the CRA’s corporation tax pages, all for 2026.
Frequently asked questions
Does the CRA accept electronic records?
Yes. Its pages accept paper and electronic formats, and allow converting paper to electronic files under its rules. Details are in Information Circular IC05-1.
How long must I keep my books?
Six years from the end of the last tax year they relate to, unless the CRA gives permission to destroy them earlier.
Which cloud bookkeeping software is best?
We haven't tested or ranked any, so we can't say. Try a month of your own transactions and ask your accountant what they can work in.
When do I have to charge GST/HST?
Once your taxable sales pass the small supplier threshold of $30,000. Read the CRA registration page for how the threshold is measured.
What happens to my records if I cancel?
That depends on the provider. Export a full copy each year, since you must keep the records for six years.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.