Larger grants often pay in tranches tied to verified milestones — you hit the milestone, submit evidence, then receive the next payment. That means your project accounting has to track spending and progress precisely, milestone by milestone.
Keep meticulous records: invoices, timesheets, contracts, proof of matching contributions, bank reconciliations. Retain them — typically at least three years after the final report. Organized records aren't bureaucracy; they're what stands between you and a failed audit. Financial and performance audits verify funds were spent on eligible costs and objectives were met, and audit findings can trigger clawbacks.
One Canadian-specific interaction: if you claim SR&ED, government assistance you received (including grants) reduces your SR&ED claim. Coordinate grant accounting with your SR&ED and tax planning so the combination is optimized, not double-counted.
The takeaway: treat records as part of the deliverable. Track spending against milestones, keep everything for years, and plan for how grants interact with SR&ED.