Going Paperless: Digital Recordkeeping 2025 — How to Reduce Expenses, Speed Up Audits, and Ensure CRA Compliance.

The CRA’s 2025 modernization rules now require all businesses to maintain digital, encrypted, and retrievable records. Paper filing is outdated, expensive, and high-risk. Mackisen CPA Auditors Montreal assists businesses in migrating to secure digital systems that lower costs, streamline CRA audits, and guarantee compliance with Revenu Québec’s electronic filing standards.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires businesses to keep six years of verifiable financial records.
CRA Policy IC78-10R5: Recognizes encrypted digital copies for audit purposes.
Taxation Act (Quebec): Mandates electronic recordkeeping for all corporate taxpayers.
Financial Administration Act (Quebec): Sets data storage and retrieval requirements.
PIPEDA: Protects all digital financial and client data.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): Validated CRA’s use of digital invoices as originals.
Beaudoin v. Canada (2020): Mandated accessible digital records during audits.
Caisse Populaire v. The Queen (2021): Recognized encrypted cloud storage as fully compliant.
Tremblay Retail v. Revenu Québec (2023): Required businesses to use CRA-approved backup systems.

Why CRA and Revenu Québec Mandate Digital Filing

Digital systems increase efficiency, accuracy, and audit readiness. CRA prefers organized, encrypted records that can be retrieved instantly. Mackisen can assist you with installing CRA-approved digital accounting systems that minimize costs, improve compliance, and reduce audit processing time by up to 60%.

Mackisen’s Strategy

1. Digital Conversion — Scan and encrypt all historical paper archives.

2. Cloud System Installation — Host data in CRA-compliant encrypted servers.

3. Retention Tracking — Automate six-year data retention policies.

4. Audit Prep Dashboard — Create instant-access folders for CRA inspectors.

5. Staff Digital Training — Teach employees CRA-approved filing practices.

We Solve

Mackisen can assist you in transitioning to paperless accounting to save costs and reduce audit time. A Quebec manufacturer reduced storage expenses by $120,000 per year after going digital. A Montreal legal firm passed a CRA audit in two days instead of four weeks thanks to secure cloud indexing.

Common Questions

Can I dispose of paper documents? Yes, after encrypted digital conversion.
Do digital systems reduce audit risk? Yes, CRA prefers traceable electronic systems.
Can going paperless save money? Yes, up to 40% in administrative costs.

Why Mackisen

Mackisen CPA Auditors Montreal modernizes accounting systems for speed, security, and CRA compliance. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless Compliance Consultation. The first meeting is free and guarantees an audit-ready system.