Documentation
Source Documentation are the original documents of your
businesses' accounting. These are the receipts you get from the
gas station, supplier or bank. This little piece of paper proves to
Revenue Canada that you did indeed incur an expense or
complete a transaction. Your accountant uses the original source
documentation to record what has happened within your business,
by recording the transactions into the journals.

It is important that you keep all original source documentation in a
safe, secure place and in an orderly fashion. If you fail to keep the
documentation, Canada Revenue Agency may disallow some
legitimate expenses you have.
 
Just as the Canada Revenue Agency can disallow expenses
without source documentation, they can also arbitrarily assess
additional sales and sales taxes to your business. This will result in
higher income taxes and additional sales tax expenses to your
business, as well as penalties and interest assessed.

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