Every year I print out the Revenue Canada publication: Using Your Home for Daycare.
Based on that, I have an envelope system of filing that I use.
I have one large brown envelope full of envelopes for the following bills: Office Supplies, Field Trips, Memberships & Subscriptions, Maintenance of House (not daycare), Home Repairs for Daycare, Capital Cost Allowance, and Advertising.
I have a second large brown envelope where I keep all food/supplies receipts, which I total and staple together monthly.
I have a receipt book, and a two drawer filing cabinet where I keep all the daycare files and resources. Actually, I only use one drawer for the daycare files. The other drawer I use to lock up all drug supplies for our household.
Once a year I total up the envelopes, write the totals on the Revenue Canada publication: Using Your Home for Daycare, and give that to my accountant. The most I have ever paid in taxes is $600. Not bad, I think.
Takes me about 4-8 hours every April to go through all my files.