Going Paperless: Digital Recordkeeping 2025 — How To Create A Fully Compliant Digital Accounting System

Paper records are outdated, inefficient, and non-compliant with CRA’s digital-first audit standards. In 2025, businesses are required to maintain electronic financial records that are secure, retrievable, and encrypted. Mackisen CPA Auditors Montreal helps organizations transition to a paperless environment using cloud-based accounting systems approved by CRA and Revenu Québec.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires businesses to keep records for six years in retrievable form.
CRA Policy IC78-10R5: Recognizes electronic records as official if verifiable.
Taxation Act (Quebec) Section 34: Mandates electronic retention for all business filings.
PIPEDA: Governs protection and retention of client data.
Financial Administration Act (Quebec): Sets standards for document security and data integrity.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): Confirmed CRA’s acceptance of digital receipts as originals.
Beaudoin v. Canada (2020): Required accessible digital archives for audits.
Caisse Populaire v. The Queen (2021): Mandated backup systems to prevent data loss.

Why CRA and Revenu Québec Require Digital Systems

Digital records reduce risk, increase transparency, and accelerate audit processes. CRA expects electronic records to be encrypted, indexed, and audit-ready. Mackisen ensures your transition meets every compliance standard and integrates seamlessly with CRA’s electronic systems.

Mackisen’s Strategy

1. Record Conversion — Scan and archive financial documents digitally.

2. Encryption — Secure records with encryption and controlled access.

3. Backup Systems — Implement multiple backups to prevent data loss.

4. Compliance Audits — Test system accessibility and record integrity.

5. Staff Training — Teach employees to manage digital archives effectively.

Real Client Experience

A Quebec manufacturer saved $45,000 annually by switching to Mackisen’s paperless system. A Montreal accounting firm passed a CRA audit using only digital records stored under Mackisen’s framework.

Common Questions

Can I destroy physical files after scanning? Yes, once stored securely.
Are digital records valid for CRA? Yes, under IC78-10R5.
How long must I retain electronic files? Seven years post-filing.

Why Mackisen

Mackisen CPA Auditors Montreal builds secure digital accounting systems that comply with CRA and Revenu Québec requirements. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless Consultation. The first meeting is free and sets your business up for digital success.