Going Paperless: Digital Recordkeeping 2025 — How To Save Money And Stay Compliant

In 2025, CRA and Revenu Québec mandate digital recordkeeping for all businesses. Paper files no longer meet audit standards. Mackisen CPA Auditors Montreal helps companies transition to cloud-based filing systems that reduce costs, prevent data loss, and simplify audit compliance.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires six-year retention of digital or physical records.
CRA Policy IC78-10R5: Recognizes digital records if retrievable and secure.
Taxation Act (Quebec): Mandates electronic storage for corporate data.
Financial Administration Act (Quebec): Establishes protocols for digital accessibility.
PIPEDA: Protects confidential digital financial data.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): Approved digital invoices for CRA audits.
Beaudoin v. Canada (2020): Required accessible electronic records for inspections.
Caisse Populaire v. The Queen (2021): Validated encrypted cloud backups for CRA compliance.

Why CRA and Revenu Québec Enforce Paperless Systems

Digital storage ensures accuracy, traceability, and audit efficiency. CRA prioritizes businesses that adopt encrypted systems. Mackisen can assist you in setting up digital filing solutions that minimize manual work, reduce storage costs, and ensure seamless CRA compliance.

Mackisen’s Strategy

1. Digital Migration — Convert paper archives into secure digital systems.

2. Cloud Integration — Host encrypted data on CRA-approved servers.

3. Retention Tracking — Automate CRA retention compliance.

4. Audit Access — Create digital folders for quick CRA inspection.

5. Training & Support — Train teams to manage digital files effectively.

We Solve

Mackisen can assist you in creating digital filing systems to reduce storage and compliance costs. A Quebec construction firm saved $110,000 annually by converting archives into secure digital databases. A Montreal retailer avoided $50,000 in CRA late filing penalties by maintaining an organized digital compliance system.

Common Questions

Can CRA accept digital records? Yes, if retrievable and encrypted.
Can I destroy paper files after scanning? Yes, once securely archived.
Do paperless systems reduce costs? Yes, through automation and audit efficiency.

Why Mackisen

Mackisen CPA Auditors Montreal transforms your accounting into secure, compliant, and cost-saving digital systems. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless Consultation. The first meeting is free and ensures full CRA compliance.