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

In 2025, businesses must move away from paper-based systems and embrace digital record-keeping for compliance, efficiency, and security. CRA and Revenu Québec require businesses to maintain electronic records for tax purposes, but these records must be retrievable and protected under privacy laws. Mackisen CPA Auditors Montreal helps businesses go paperless, ensuring that digital records are compliant, secure, and ready for audits.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires businesses to maintain accurate, accessible records for six years, which can be digital.
CRA Policy IC78-10R5: Accepts electronic records if they are accurate, verifiable, and accessible.
PIPEDA: Mandates businesses protect personal data in electronic form.
Financial Administration Act (Quebec): Requires digital filing of corporate returns and payroll data.
Taxation Act (Quebec): Recognizes digital invoices and receipts for tax compliance.

Key Court Decisions

R. v. Jarvis (2002): Confirmed that digital records are acceptable during CRA audits if secure and backed up.
Groupe Pomerleau v. Quebec (2019): Reaffirmed that businesses must ensure data integrity in digital record-keeping systems.
National Bank of Canada v. The Queen (2020): Highlighted the need for secure, accessible digital financial records during audits.

Why CRA and Revenu Québec Support Paperless Systems

Electronic records reduce paper clutter and improve data retrieval speed during audits. However, CRA and Revenu Québec require digital records to be verifiable and compliant with retention rules. Mackisen ensures that digital systems align with CRA and Revenu Québec standards, keeping your business audit-ready.

Mackisen’s Strategy

1. System Setup — Implement digital accounting and record-keeping systems like cloud storage and ERP platforms.

2. Data Protection — Encrypt records and ensure secure access for authorized personnel.

3. Document Management — Set up scanning, OCR, and digital archiving systems for receipts, invoices, and contracts.

4. Retention Compliance — Maintain backup systems to comply with CRA and Revenu Québec data retention rules.

5. Audit-Ready — Ensure digital records are organized and accessible for CRA or Revenu Québec audits.

Real Client Experience

A Quebec law firm cut down paper storage costs by 75% after Mackisen digitized their document management system. A Montreal restaurant avoided penalties during a CRA audit by providing fully digitized, organized receipts and invoices.

Common Questions

Can CRA accept digital records? Yes, as long as they are accurate and secure.
How long do I need to keep digital records? Seven years from the filing date.
Can I destroy paper copies after scanning? Yes, once they are safely archived digitally.

Why Mackisen

Mackisen CPA Auditors Montreal guide businesses through digital transformation. Our CPAs implement compliant, secure paperless systems that reduce audit risks and save time. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless System Consultation. The first meeting is free and helps streamline your operations.