Going Paperless: Digital Recordkeeping 2025 — How To Reduce Costs And Improve Audit Readiness

In 2025, digital recordkeeping is mandatory for CRA and Revenu Québec compliance. Businesses must maintain electronic, encrypted, and retrievable archives to pass digital audits. Mackisen CPA Auditors Montreal assists companies in going paperless, improving audit efficiency, and cutting administrative costs while ensuring complete CRA compliance.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires six-year retention of records.
CRA Policy IC78-10R5: Accepts scanned digital files as legally valid.
Taxation Act (Quebec): Mandates electronic recordkeeping for all filings.
Financial Administration Act (Quebec): Defines data protection standards for digital archives.
PIPEDA: Ensures confidentiality and encryption of stored financial data.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): CRA accepted scanned invoices for audits.
Beaudoin v. Canada (2020): Required accessible electronic filing systems.
Caisse Populaire v. The Queen (2021): Confirmed encrypted cloud backups as compliant.

Why CRA and Revenu Québec Promote Paperless Filing

Digital filing enhances efficiency, compliance, and transparency. CRA prefers encrypted, organized databases that streamline audit processes. Mackisen can assist you with setting up cloud-based systems that reduce storage, lower costs, and ensure audit-ready accessibility.

Mackisen’s Strategy

1. Digital Transition — Convert archives into encrypted digital systems.

2. Cloud Configuration — Implement CRA-compliant storage solutions.

3. Retention Automation — Track CRA and Revenu Québec timelines.

4. Audit Access — Create quick-access audit folders.

5. Staff Training — Ensure employees follow paperless compliance protocols.

We Solve

Mackisen can assist you in setting up digital recordkeeping systems to reduce costs and simplify audits. A Quebec retailer cut document storage expenses by $90,000 annually with secure digital archiving. A Montreal professional firm shortened CRA audit turnaround time by 40% after implementing an encrypted filing structure.

Common Questions

Can CRA audits be fully digital? Yes, if systems are compliant and encrypted.
Can paper records be destroyed? Yes, after secure digitization.
Does digital filing lower costs? Yes, through automation and storage savings.

Why Mackisen

Mackisen CPA Auditors Montreal ensures compliance, cost savings, and security through certified digital accounting systems. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless Consultation. The first meeting is free and helps prepare you for CRA’s digital audit future.