Canadian Record-Keeping Rules for Veterinarians

As a veterinary practice owner, you juggle many roles, from chief surgeon to lead counsellor. You are also the chief record-keeper. Knowing what to keep, what to discard, and for how long can feel like a complicated puzzle. But it does not have to be.

Keeping organized records is about more than just staying compliant. It is essential for providing excellent patient care, protecting your practice from legal issues, and making strategic decisions for growth. This guide will clarify the rules for keeping financial and medical records in your Canadian veterinary practice.

Your Financial Record Obligations

When it comes to your finances, the Canada Revenue Agency (CRA) sets the rules. Understanding their requirements is the first step to a stress-free tax season and a well-managed practice.

What Financial Records to Keep and For How Long

While the CRA’s general guideline is to keep records for six years after the year end of the last tax year to which it relates (effectively seven years), this rule isn’t as simple as it seems. Different types of records have different retention periods.

1. General Financial and Tax Records (Keep for 7 Years)
For most of your day-to-day operational records, the CRA’s six-year rule applies. In practice, this means holding onto them for seven years. This category includes:

• • Income and expense records, including invoices
  • Bank and credit card statements
  • Payroll records (e.g., employee hours, EI/CPP contributions, TD1s)
  • GST/HST returns and supporting documents

2. Capital Asset Records (Keep Until 7 Years After Disposal)
For capital assets like clinic buildings, x-ray machines, surgical tools, or computer systems, the rule is different. You must keep all purchase and sale records for these assets until six years after the year you dispose of the asset. For example, if you sell a piece of equipment in 2024, you must keep the records for it until the end of 2030.

3. Corporate Records (Keep Indefinitely)
If your veterinary practice is incorporated, certain foundational documents must be kept for the entire life of your corporation and for an additional six years after it dissolves. These documents are essential for legal verification and become critical if you ever plan to sell your practice. These records include:

• • Articles of incorporation
  • Shareholder agreements and ledgers
  • Your corporate minute book, including all resolutions and meeting minutes

Where You Store Your Records Matters

The CRA requires that your records must be kept at your place of business in Canada. This is an important detail, especially if you use digital storage. If you use cloud-based accounting software with servers located outside of Canada, you are technically not in compliance.

A simple solution is to regularly save a backup of your financial records to a local drive or server located physically in Canada. A PDF or CSV file of your general ledger is often sufficient to meet this requirement.

Managing Veterinary Medical Records

The CRA does not set the rules for medical records. Instead, they are governed by your provincial veterinary regulatory body.

Provincial Rules Are Key

Each province has its own specific retention period for patient files. It is important to check the bylaws of your local college to ensure you are compliant.

For example, the College of Veterinarians of British Columbia (CVBC) requires practices to keep medical records, including radiographs and controlled prescription logs, for seven years after the patient’s last visit. In contrast, other provinces may have different timelines. The College of Veterinarians of Ontario (CVO) also has a retention policy. This highlights the need to confirm the rules in your province.

What to Include in a Quality Medical Record

A complete medical record is your best tool for ensuring continuity of care and is a legal document that protects your practice. Every record should be legible and include:

• Clear patient identification details.
• SOAP (Subjective, Objective, Assessment, and Plan) notes for each visit.
• Documentation of all client communications.
• Signed consent forms for procedures.
• A full history of all prescribed and administered medications.

Paper vs. Digital Storage

While paper records are simple to start with, they can be easily lost or damaged and are difficult to share. Electronic Medical Records (EMRs) offer better legibility, security, and accessibility. If you choose a digital system, remember the CRA requires electronic records to be kept in a readable format for the entire seven-year retention period.

Balancing Privacy with Retention Rules

Canadian privacy law, through the Personal Information Protection and Electronic Documents Act (PIPEDA), advises that personal information should only be kept as long as necessary. This may seem to conflict with the long retention periods required by the CRA and veterinary colleges.

The best practice is to follow the longest applicable timeline. Once you are past the required retention period set by the CRA or your provincial college, you should have a process to securely destroy or anonymize the records.

Simplify Your Record-Keeping

Staying on top of your record-keeping obligations does more than just keep you compliant. It provides the clear, reliable data you need to make informed business decisions and streamline your operations, preparing your practice for future growth or sale.

Our team specializes in helping veterinary owners transform complex numbers into strategic insights. If you would like to learn more about how we can support your practice’s financial health, you can book a free Financial Assessment with us.

Frequently Asked Questions

• My clinic is paperless and uses a cloud server. Do I still need to worry about the CRA’s “keep in Canada” rule?
  Yes. If your cloud provider’s servers are outside Canada, you must keep regular backups on a local drive or server that is physically located in Canada to remain compliant.
• A client is asking for their pet’s entire medical history. Do I have to give it to them?
  While the practice owns the physical or digital record, clients generally have a right to access a copy of the information. It is a good idea to have a clear, written policy for handling these requests.
• What is the most important timeline to remember for my records?
  For your financial documents, the key number is seven years to meet CRA requirements. For medical records, the timeline depends on your province, so always check with your local veterinary college.
• How long should I keep files for former employees?
  This can vary by province and type of record. For example, WorkSafeBC requires some records to be kept for 10 years. Always check your provincial employment standards and workplace safety regulations.