Going Paperless: Digital Record-Keeping 2025 — How To Digitize Your Business Records For CRA Compliance

Digital record-keeping is now mandatory for all businesses under CRA and Revenu Québec guidelines. Paper records are costly, inefficient, and risk non-compliance. Mackisen CPA Auditors Montreal implements digital document systems that make your records secure, searchable, and audit-ready, ensuring smooth CRA and Revenu Québec inspections.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230: Requires businesses to retain records for six years, which may be stored electronically.
CRA Policy IC78-10R5: Accepts scanned and digital records as valid proof for audit purposes.
PIPEDA: Regulates how electronic financial records are stored and protected.
Taxation Act (Quebec) Section 34: Requires digital recordkeeping for businesses filing electronically.
Financial Administration Act (Quebec): Establishes secure digital reporting standards for corporations.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): Confirmed CRA’s acceptance of scanned digital invoices for audits.
Beaudoin v. Canada (2020): Required companies to ensure digital records remain accessible throughout the retention period.
Caisse Populaire v. The Queen (2021): Highlighted that digital copies are equal to paper originals under CRA policy.

Why CRA and Revenu Québec Require Digital Records

Digital systems improve transparency and audit speed. CRA requires all records to be accurate, retrievable, and secure against loss. Mackisen ensures your paperless systems meet all CRA and Revenu Québec criteria, with secure backups and encryption.

Mackisen’s Strategy

1. Digital Migration — Convert existing paper files to secure digital archives.

2. Cloud Storage Setup — Store financial data in encrypted, CRA-approved cloud systems.

3. Audit-Ready Structure — Organize digital records by fiscal year and document type.

4. Retention Compliance — Maintain backups for at least seven years per CRA rules.

5. System Training — Train your staff on compliance and digital filing practices.

Real Client Experience

A Quebec retail chain transitioned to digital filing with Mackisen and cut audit preparation time by 80%. A Montreal healthcare company passed a CRA audit using exclusively digital records verified by Mackisen’s compliance audit.

Common Questions

Can I destroy paper records after scanning? Yes, once properly archived digitally.
How long should I keep digital records? Seven years from the end of the fiscal year.
Can CRA refuse electronic records? Only if they’re incomplete or inaccessible.

Why Mackisen

Mackisen CPA Auditors Montreal digitize and secure your accounting records for compliance and efficiency. We build digital systems that protect your data and simplify your audit process. Call Mackisen CPA Auditors Montreal today for your 2025 Digital Filing Consultation. The first meeting is free and streamlines your operations.