Going Paperless: Digital Record-Keeping 2025 — How To Streamline Your Business

Going paperless is no longer just an option—it’s a necessity for businesses in 2025. With CRA and Revenu Québec requiring digital filings and documents for tax compliance, businesses must ensure their records are securely stored and easily accessible. Mackisen CPA Auditors Montreal helps businesses transition to paperless systems, ensuring compliance with CRA’s digital record-keeping rules and improving operational efficiency.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230: Requires businesses to retain records for six years, which can now be stored digitally.
CRA Policy IC78-10R5: Acknowledges the legitimacy of electronic records as long as they are verifiable and retrievable.
Taxation Act (Quebec) Section 34: Requires the electronic filing of corporate tax returns and payroll data.
PIPEDA: Mandates businesses to protect digital financial records to ensure privacy.

Key Court Decisions

Groupe Beaudoin v. Canada (2020): Validated the use of digital record-keeping for tax filings.
Les Ailes de la Mode v. Quebec (2019): Confirmed that paperless records are acceptable during audits, provided they meet CRA standards.
Caisse Populaire v. The Queen (2021): Upheld the importance of document integrity and verifiability for digital records.

Why CRA and Revenu Québec Require Paperless Systems

Digital records reduce errors, improve access to tax data, and streamline audits. CRA and Revenu Québec now require businesses to store financial records electronically, as paper records are becoming obsolete. Mackisen ensures that your paperless systems are secure, compliant, and ready for audits.

Mackisen’s Strategy

1. System Integration — Set up cloud-based accounting and document storage solutions.

2. Data Security — Implement encryption and access control systems for secure data management.

3. Audit-Ready Compliance — Ensure your digital records meet CRA and Revenu Québec guidelines.

4. Training and Best Practices — Train your team on proper digital record-keeping practices.

5. Ongoing Monitoring — Regularly review systems to ensure compliance with changing regulations.

Real Client Experience

A Montreal accounting firm successfully moved its paper records to a secure cloud system, reducing storage costs by 70%. A Quebec e-commerce company passed a CRA audit after Mackisen implemented a digital record-keeping system that ensured full CRA compliance.

Common Questions

Can CRA accept digital records? Yes, as long as they are secure and compliant with PIPEDA.
How long must I keep digital records? Seven years from the filing date.
What happens if I don’t comply? You risk penalties, audit adjustments, and delayed claims.

Why Mackisen

Mackisen CPA Auditors Montreal are experts in implementing paperless systems that meet CRA and Revenu Québec requirements. We help businesses reduce costs, improve compliance, and stay audit-ready. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless System Consultation. The first meeting is free and will help transform your accounting operations.