Updated Checked by the Tax-Services.ca editorial team How we check
The accounting tools a Canadian business can trust most are the free ones the CRA publishes: a payroll deductions calculator, a GST/HST calculator, a My Business Account login and the record lists it says you must keep. Templates and software are a personal pick, and we can’t verify any product’s claims.
Which official tools do you need first?
The CRA’s small business resources page lists two calculators that matter on day one. The payroll deductions calculator works out what to withhold from an employee. The GST/HST calculator sits under the CRA pages on which rate to charge. Both are free and both sit on canada.ca.
Then there’s My Business Account. The CRA describes it as the secure portal for managing GST/HST, payroll and corporation tax, with online mail so your notices don’t arrive on paper. It’s also where an officer may contact you during an examination, since the CRA says its officers can’t reach you directly by email.
Set it up before you need it. A new business owner who registers the account in week one has a place for every notice from the start, and nothing sits unopened in a mailbox for a month.
What should a bookkeeping template actually track?
You don’t need an elaborate file. You need your records to answer the questions the CRA asks, and it tells you what they are. For GST/HST you must be able to work out what you collected and what you can claim back, so you keep copies of sales invoices and purchase receipts. For payroll, it lists hours worked by each employee, amounts withheld for CPP, EI and income tax, each employee’s TD1 form, and the slips and returns you’ve filed.
| Record | What to capture |
|---|---|
| Sales | Invoice number, date, customer, amount, GST/HST charged |
| Purchases | Supplier, date, amount, tax paid, what it was for |
| Payroll | Hours, gross pay, CPP, EI, income tax withheld, TD1 |
| Vehicle | Trip dates, kilometres, business purpose |
| Bank | Statements matched to the books each month |
Any spreadsheet that holds those columns works. So does accounting software, if it exports them. Judge a template by whether it does, and ignore the ones that look busy. A plain sheet you update every Friday beats a gorgeous dashboard you open twice a year.
Paper or electronic?
Both are allowed. The CRA says records can be on paper, electronic or a mix, and its guidance covers scanning paper into electronic form and keeping backups of your files. Information Circular IC05-1 sets out the electronic rules. If you go digital, back up somewhere other than the same laptop. A dead drive doesn’t count as a reason the CRA accepts.
The same guide, Keeping Records (RC188), says you keep records for six years from the end of the last tax year they relate to, and that they belong at a Canadian residence or place of business unless the CRA gives permission otherwise. It also says computerized records from accounting, point of sale and online systems must be kept alongside the paper.
A worked example with real numbers
Take an Ontario business that sells $10,000 of taxable services in a month. The GST/HST calculator shows 13% HST, so $1,300 of tax and a total of $11,300. Your template should show the $10,000 and the $1,300 on separate lines, because the $1,300 isn’t your money.
Now payroll. One employee paid $2,000 a month in Ontario has $110.29 of income tax, $101.65 of CPP and $32.60 of EI held back, according to our payroll remittance calculator. You add your own CPP of $101.65 and EI of $45.64, so the monthly remittance is $391.82. A good payroll template has one column for each of those figures. If yours only has “net pay”, replace it.
For a single paycheque, try the payroll deductions calculator. To see what stays after costs, use the profit margin calculator.
How do you pick a template without getting burned?
Run the same test on every candidate. Enter last month’s real figures, then ask whether it can show you three things on one screen: the tax you collected, the tax you paid on purchases, and what’s left to remit. If it can’t, it’s a nice-looking list, not a bookkeeping tool.
Then check how you’d get out. Export your data once, in the first week, and open the file. If the export is a mess, you’ve learned that for free.
What we couldn’t confirm
We didn’t compare accounting software, and we’re not going to name a winner. Prices, features, free trials and “CRA-ready” labels change, and we couldn’t verify them. If a vendor says its product meets the CRA’s record rules, ask which rule and read it yourself. Look at export options too, since you’ll want your data back if you switch.
What this page is based on
The record lists and tool descriptions come from the CRA pages on small business resources, GST/HST and payroll records, keeping records and the small business checklist, read in September 2026. The examples use this site’s calculators with 2026 Ontario settings. We’re an independent site, and no government body is behind it.
Frequently asked questions
Which free tools does the CRA offer businesses?
Its small business resources page lists a payroll deductions calculator and a GST/HST calculator, plus My Business Account and online mail.
What records must payroll templates hold?
The CRA lists hours worked, CPP, EI and tax withheld, each employee's TD1 and the slips and returns you filed.
Can I keep my books electronically?
Yes. The CRA accepts paper, electronic or both, and its guidance covers scanning and backing up files.
Which accounting software is best?
We didn't verify any product's features or prices, so we don't pick one. Judge it by whether it exports the records the CRA describes.
Where does the CRA contact me during an examination?
It may use phone, letters or online mail in My Business Account. It says its officers can't contact you directly by email.
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