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Accounting software in Canada is worth choosing on one test: can it hand you your books in a readable file when the CRA asks, years from now? A package such as QuickBooks Online (named here as one example, and we make no claim about it) can do the adding, but the record-keeping duty stays with you.
What does the CRA expect from accounting software?
The rule is older than the software. Business records have to be kept for six years from the end of the last tax year they relate to, and if they live on a computer, they have to stay in a form the CRA can actually read and use. That covers the data inside your accounting program, your point of sale and your online shop, along with the PDFs.
Here’s the part people miss. The CRA says a software fault doesn’t relieve you of the duty. If a product has weak backups, you have to add your own. And if you store records outside Canada, you need the Minister’s written permission, and copies still have to be available in Canada in a usable format.
| Question for any product | Why the CRA angle matters |
|---|---|
| Can I export everything in a common file format? | Records must be readable and usable, in commonly used formats |
| Where does the data sit? | Records kept outside Canada need written permission |
| What happens to my data if I stop paying? | You must keep six years of records anyway |
| Can I back it up myself? | Weak backups don’t excuse missing records |
Can the software get Canadian sales tax right?
It can, but check it once with a number you know. In Ontario, HST is 13%, so a $1,000 invoice carries $130 of HST and totals $1,130. In Alberta, only 5% GST applies, so the same invoice totals $1,050. The GST and HST calculator gives you those figures in seconds, and you can compare them against what your software puts on a test invoice.
Be careful with provinces that have a separate provincial sales tax on top of GST. Set up each product or service with the correct tax code, and don’t assume one default is right for everything. If you sell into Quebec, the GST and QST calculator shows how the two taxes stack.
Does payroll inside the software work out?
Many packages offer payroll as an extra. We couldn’t confirm what any of them cost or exactly what they calculate, so treat that as a question for the vendor. What you can do is test the output. Say you pay one Ontario employee $3,000 every two weeks. Our payroll remittance calculator puts the employer’s total bill to the CRA at about $961.03 per pay period: $732.62 from the employee’s pay (income tax, CPP and EI) plus $228.41 of employer CPP and EI.
If your software shows something far from that, find out why before the first pay day. The payroll deductions calculator breaks the employee side down line by line.
What should you ask before you pay for anything?
Ask the boring questions first.
Can you export your data? Can you get it after you cancel? How long is it kept? Who else can see your files, and can your bookkeeper log in without sharing your password? Does it handle the tax setup for your province? None of this needs a demo. A trial account and an hour will answer most of it.
And what about price? We can’t tell you. We didn’t verify any plan prices or feature lists, and they change often, so read the vendor’s page on the day you buy.
Where do software mistakes usually start?
Usually at setup. The wrong province, the wrong tax code on a product, a bank feed that skips a month, a personal expense left in the business file. The software will add it all up neatly, and neatly wrong is still wrong.
Reconcile the bank account every month, even if it takes ten minutes. Keep the receipts that back up expenses, since the export may show a total but the CRA wants the source. And once a year, download a full copy of your books and store it somewhere you control. To see whether the business is actually making money, the profit margin calculator is a quick sanity check on the figures your software reports.
Where do these numbers come from?
The retention period and electronic-record rules come from the Canada Revenue Agency’s publications on keeping records and electronic record keeping, the latter dated 24 February 2020. Tax rates and payroll figures come from our 2026 data, which we rechecked on 29 September 2026. This website has no connection with the CRA, Intuit or any other company or government body.
Frequently asked questions
Does the CRA accept records kept in accounting software?
Yes, if they stay readable and usable in a commonly used format. You must keep them for six years from the end of the last tax year they relate to.
Can I store my books outside Canada?
Only with the Minister's written permission, and copies must still be available in Canada in a usable format.
How do I check the HST is right?
Run a test invoice. In Ontario, $1,000 should carry $130 of HST, and in Alberta $50 of GST.
Who is responsible if the software backs up badly?
You are. The CRA says software shortcomings don't relieve you of the record-keeping duty, so add your own backup.
Should I trust the payroll figures without checking?
Test them first. One Ontario employee at $3,000 every two weeks should give a remittance near $961.03 per pay period on our calculator.
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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.