How to Prepare e-Transfer Records for a CRA Audit

If the Canada Revenue Agency asks for records involving Interac e-Transfers, start with the exact period, accounts, taxes, and documents named in the request. Build a transaction schedule, confirm every completed transfer against the bank, link it to the invoice, receipt, contract, payroll record, or other source document, and reconcile the schedule to the books and filed amounts.

An e-Transfer notification is useful evidence, but it is not a complete audit file. It can show information communicated about a transfer; the bank record shows whether money moved; the source document explains why; and the ledger shows how the business reported it.

What e-Transfer Records Can the CRA Review?

The scope depends on the request. The CRA's business-audit guidance says an auditor may examine ledgers, journals, invoices, receipts, contracts, bank statements, and other relevant business records. In some circumstances, records for a business owner or a related person may also be requested when they relate to the audit.

Do not assume that an inbox search or a payment-app export is the requested population. Read the letter and identify:

• The legal entity or taxpayer
• The income-tax, GST/HST, payroll, or other program account involved
• The fiscal periods and transaction dates
• The bank accounts, inboxes, and business activities in scope
• The requested file format and submission method
• The response deadline and CRA contact

If the wording is unclear or the request appears broader than expected, ask the assigned auditor or your authorized tax professional to clarify it. Keep that clarification with the working file.

What Should an e-Transfer Audit Schedule Include?

Use one row for each actual transfer, not one row for every notification email. A practical schedule includes:

• A stable row or transaction ID
• Sent or received direction
• Sender and recipient names as displayed
• Customer, supplier, employee, tenant, owner, or other matched party
• Notification date, bank settlement date, and reporting date when different
• Gross amount, fee, refund, and net bank movement
• Completed, pending, declined, cancelled, expired, or returned status
• Interac reference number when available
• Bank account and statement-page reference
• Invoice, receipt, contract, claim, lease, payroll, loan, or internal reference
• Bookkeeping account and GST/HST or payroll treatment
• Explanation for personal, duplicate, unmatched, or excluded items
• The person who reviewed the match and the review date

This schedule is a cross-reference. It does not replace the supporting records.

How Do You Prepare the Records Step by Step?

1. Verify the request before sharing information

Confirm that the letter, portal message, or caller is genuine. The CRA's contact-verification guidance says not to rely on caller ID and explains how to verify a callback number. Use a known Canada.ca address or CRA number rather than a link or number supplied in an unexpected message.

Record the case or reference number, assigned contact, deadline, and approved delivery channel. Do not send financial records to an unverified requester.

2. Preserve the original evidence

Make a working copy without deleting, renaming, or rewriting the originals. Preserve notification messages, attachments, bank statements, accounting exports, invoices, receipts, and correspondence with their original dates where possible.

If an entry was wrong, document the correction separately. The CRA's electronic-record guidance describes an audit trail as information that can recreate the sequence of events and says relevant changes should preserve previous and current details, timing, and reasons.

3. Define the complete transfer population

List every business bank account and notification inbox used during the requested period, including an old account or address that was closed. Include sent and received transactions plus status events that explain why an initiated transfer did not settle.

Do not total email messages. A Request Money notice, sent notice, reminder, Autodeposit confirmation, cancellation, and expiry can describe different stages of one transaction. Match them by reference, amount, parties, status, and timing.

4. Confirm settlement with the bank

Compare every transfer marked completed with the relevant deposit or withdrawal. Record the bank account, transaction date, amount, and statement reference.

Investigate a notification with no bank movement, a bank movement with no notification, a timing difference, a fee, a refund, or a replacement transfer. Leave an item unresolved until the available evidence supports the outcome.

5. Link each transfer to its business purpose

Match incoming payments to sales invoices, contracts, rent rolls, or other income support. Match outgoing payments to supplier invoices, receipts, expense claims, payroll records, loan documents, or other support.

The CRA's business-record guidance says income and expense entries must be supported by original documents. The payment method does not establish whether an amount is revenue, an expense, a loan, an owner contribution, a refund, or a transfer between accounts.

6. Reconcile the schedule to the books and returns

Group the completed, in-scope transfers by the same periods and categories used in the accounting records. Compare the schedule with the bank reconciliation, accounts receivable, accounts payable, general ledger, and the filed return or remittance under review.

Explain differences instead of forcing the schedule to equal a return. Accrual timing, GST/HST, payroll deductions, deposits, refunds, fees, internal transfers, and personal items can make a bank total differ from taxable income or deductible expenses.

7. Build an exception log

Give every unresolved item an owner, evidence needed, due date, and current explanation. Common exceptions include:

• A third party paid an invoice for the customer
• Several transfers paid one invoice
• One transfer covered several invoices
• The sender name does not match the business name
• A transfer passed through a personal account
• A payment was refunded, cancelled, or replaced
• A notification or old statement is missing
• The same amount appears twice but only one item settled

Keep both the exception and its resolution. A transparent correction trail is more useful than a silently edited spreadsheet.

8. Deliver the requested package securely

Use the method specified by the CRA. The agency's audit guidance says auditors cannot receive files by email for security reasons and may direct taxpayers to secure online services, mail, or another approved route.

Use clear filenames, a short index, and common readable formats. Ask the auditor what format is acceptable before converting accounting data or sending a large archive. Keep an exact copy of what was delivered and record the submission confirmation.

What If the Records Are Electronic?

Electronic records must remain accessible and usable, not merely visible as screenshots. CRA Information Circular IC05-1 says electronic records must retain enough detail to support the reported amounts, remain electronically readable for the required period, and connect summarized accounts back to source documents.

A CSV can make a transfer schedule analysable, while a PDF can preserve a readable snapshot. The requested package may need both, plus source documents and accounting data. A proprietary backup that only opens in discontinued software is not a safe substitute for a restorable, usable record.

Using an accountant, bookkeeper, email provider, or transaction tool does not transfer the business's record-keeping responsibility. Preserve a controlled copy and confirm that it opens before submission.

How TransferLog Helps Prepare e-Transfer Records

TransferLog organizes transaction details detected in supported Interac e-Transfer notification emails from connected Gmail, Outlook, or iCloud inboxes. You can review sent and received records, search and filter them, assign categories, and export CSV or PDF on the Pro plan.

Use that export as the notification side of the audit schedule:

1. Filter the requested period and relevant accounts.
2. Review the detected parties, amounts, dates, directions, statuses, and references.
3. Remove out-of-scope rows only with an explanation.
4. Match the remaining rows to bank entries and source documents.
5. Reconcile the result to the accounting records.

TransferLog does not access bank accounts, retrieve every possible Interac record, decide the audit scope, classify taxes, or submit records to the CRA. It cannot replace the original messages, bank evidence, books, source documents, or professional advice.

For ongoing preservation, use the e-Transfer record-retention checklist. If history is incomplete, follow the guide to finding old Interac e-Transfer records.

Official Sources

• CRA: Business audits
• CRA: What you should know about audits
• CRA: Electronic Record Keeping
• CRA: Business records
• CRA: Verify it's the CRA calling

This article provides general record-keeping information, not tax, legal, or audit advice. Follow the CRA request for your case and consult a qualified professional when needed.

Organize supported e-Transfer notifications for your records package. Start free; export on Pro, then reconcile the file with your bank, books, and source documents.