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The right accounting package for a Canadian business is the one that keeps your records for six years after the year they belong to, in a format the CRA can read, and calculates GST/HST correctly. Everything else is convenience. SAP is a name you will meet in this search, and we assumed you mean the business software company; we make no claim about any product.
What does the CRA require from accounting software?
The CRA’s rules on electronic records are short, and they bind you whichever package you pick. Records kept electronically must stay in an electronically readable format for six years after the end of the year they relate to. They must be in a common data interchange format that works with the CRA’s software.
Backups count too. You have to be able to restore them to a usable format, write them accurately to storage and test that they can be recovered from time to time. And if you change packages, you must keep the ability to get at the old data. Losing it is your problem, not the vendor’s.
The CRA says the same about a bookkeeper or a cloud provider. You can hand the work over. You can’t hand over the responsibility.
Which questions should you ask before you buy?
We couldn’t verify prices, discounts, features or rankings for any package, so none appear here. What we can give you is a list of questions that matter and the reason each one does.
| Ask this | Why it matters |
|---|---|
| Can I export all my data in a common format? | The CRA expects a common data interchange format |
| What happens to my records if I stop paying? | You must keep six years of readable records |
| Can I restore a backup and test it? | The CRA wants backups that can be restored |
| Does it handle GST/HST and provincial sales tax? | Your rate depends on the province |
| Does it track who changed a transaction? | The CRA expects controls and a record of changes |
The last row reflects the CRA’s call for controls such as access limits, input checks and documentation of any changes to transactions.
Is a big system worth it for a small business?
Usually not. A large enterprise package is built for companies with many departments, and it comes with setup work and a bill to match. We can’t quote that bill. A sole proprietor with a few invoices a month doesn’t need it, and a simple package that passes the questions above is enough.
The test is what you’d do if the vendor vanished next year. Could you pull out your books and keep going? If the answer is yes, the choice isn’t fatal, whichever one you make.
How do you check the tax numbers the software gives you?
Don’t take the software’s word for it in the first month. Pick one invoice and run it by hand. Say you bill $10,000 in Ontario. The GST/HST calculator shows 13% HST, $1,300, for a total of $11,300. If your package shows something else, find out why before you send a hundred invoices.
Do the same for payroll. Enter one employee’s pay period into the payroll remittance calculator and compare its total with the remittance your software prepares. Small gaps can come from rounding, so look at the size of the difference, not the cents.
For a view of profit after the books are in order, the profit margin calculator is a quick cross-check. Corporations can test their tax with the corporate tax calculator.
What goes wrong most often?
People switch packages in the middle of a year and lose the old file. Then someone asks for the records, and they’re in a format nobody can open. Export a full copy before you cancel, and store it with the six-year clock in mind.
The other one is trusting a package to file for you. Software records and calculates. You still sign the return, and the CRA still holds you to its rules.
Where the numbers come from
The record-keeping rules come from the CRA publication on electronic records, on Canada.ca. The examples use our 2026 tax data: Ontario HST of 13% and the federal payroll rates in our calculators. We didn’t confirm any software vendor’s features or prices, so ask the vendor and check the CRA page. This website has no connection with the CRA or any other government body.
Frequently asked questions
How long must I keep electronic accounting records?
The CRA says six years after the end of the year they relate to, in an electronically readable format.
Can my bookkeeper or cloud provider take over record keeping?
They can do the work, but you stay responsible for records being accessible, readable and retained.
What if I switch to a different accounting package?
You must keep the ability to access and retrieve your old data. Export a full copy before you cancel.
Does a big enterprise system give me better tax results?
We could not confirm that for any product. Tax results depend on correct inputs, not on the size of the system.
How can I test that my software calculates HST correctly?
Run one invoice by hand. A $10,000 sale in Ontario carries $1,300 of HST at 13%, for a total of $11,300.
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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.