--- title: "Digital Record Keeping: What the CRA Accepts (Scans, Storage)" url: https://www.everstonecpa.com/blog/digital-record-keeping-cra-requirements description: "What the CRA accepts electronically: scanned receipts, imaging standards, where records must be stored, and how long to keep them readable. Check yours." type: guide updated: 2026-10-08 summary: "The CRA accepts electronic records, but on conditions. Records kept electronically must be retained in an electronically readable format for the required period, stored securely in Canada, and produced to auditors in a usable form. Paper source documents may be destroyed only if imaged to the applicable national standard." faq_count: 6 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Digital record keeping: what the CRA accepts electronically Recordkeeping # Digital record keeping: *what the CRA actually accepts* By EverStone CPA · Updated September 2026 · 9 min read **Quick answer:** The CRA accepts electronic records, but on conditions. Records kept electronically must be retained in an electronically readable format for the required period, stored securely in Canada, and produced to auditors in a usable form. Paper source documents may be destroyed only if imaged to the applicable national standard. Yes, you can bin the paper — once these conditions hold. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online) ## Key takeaways - Subsection 230(4.1) requires records kept in electronic format to be retained in an electronically readable format for the prescribed period, even where hard copy exists. - Records must be kept at the person’s place of business or residence in Canada, or another place designated by the Minister. - Records kept outside Canada and accessed electronically from Canada are not considered records in Canada. - Paper source documents that have been imaged to the applicable national standard may be disposed of, with the images kept as permanent records. - Contracting the bookkeeping out to a third party does not transfer the record keeping, readability, retention or access responsibilities. “Can I scan everything and throw the paper out?” The short answer is yes. But the CRA’s acceptance of electronic records comes with conditions on format, location, quality and backup that most shoebox-to-cloud conversions ignore. ## The core CRA rule for digital records: readable, not merely stored Subsection 230(4.1) requires electronic records to be kept in an **electronically readable format** for the prescribed period, even when hard copy exists. The CRA defines electronically readable as supported by a system that can produce an accessible and useable copy. Related: [CRA record retention: how long to keep business records](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records). “Useable” matters. You must give records to [CRA audit](https://www.everstonecpa.com/cra-review-and-audit-support)ors in a format they can process and analyze on CRA equipment. A folder of flat images is storage, not necessarily a readable accounting record. If you convert formats, the records must stay reliable and readable, with nothing lost or altered. **Going paperless?** We set up cloud bookkeeping with receipts attached to every transaction, so the records hold up in a CRA review, from $325 a month. See [our bookkeeping](https://www.everstonecpa.com/accounting-services), or [get a quote](https://www.everstonecpa.com/book-online). [Get My Fixed Quote](https://www.everstonecpa.com/book-online) ## Where the records have to live Records must be kept at your place of business or residence in Canada, or another place the Minister designates, and be available to CRA officers on request. The CRA’s position is that **records kept outside Canada and accessed electronically from Canada are not records in Canada**. There is a way through. For records kept electronically outside Canada, the CRA may accept a copy made available in Canada in a readable, useable format with enough detail to support the returns filed. The Minister may also authorize keeping records elsewhere, on written terms. Businesses on foreign servers carry the same responsibilities. Not sure how this applies to you? Every corporation is different. Send an enquiry for a straight answer and a fixed quote. [Send an Enquiry →](https://www.everstonecpa.com/book-online) [See fixed fees](https://www.everstonecpa.com/pricing) ## Scanned receipts: the imaging standard Images of books of original entry and source documents must meet the national standard of Canada for electronic images as documentary evidence. The CRA’s requirements describe a controlled process, not “take a photo”: - A log recording the date of imaging, the signatures of the persons authorizing and performing it, a description of the records imaged, and whether source documents were destroyed after imaging and on what date. - Imaging software that maintains an index permitting immediate location of any record, and that inscribes the imaging date and the name of the person who did the imaging. - Images of commercial quality, legible and readable when displayed on a screen or reproduced on paper. - Equipment in good working order available, after reasonable notification, to view or reproduce a hard copy of the image. Where that is met, paper source documents that have been imaged to the standard may be disposed of and their images kept as permanent records. Where imaging is done by a third party, the taxpayer is still responsible for ensuring it was done acceptably. ## Records that were born electronic Documents created, sent or received electronically must also be kept electronically — a printout is no substitute. Source documents include sales and purchase invoices, cash register receipts, contracts, credit card receipts, delivery and deposit slips, work orders, dockets, cheques, bank statements and tax returns, and can include relevant emails and correspondence. The CRA also expects an audit trail from source documents to the summarized accounts, detailed enough to support the summarized figures. For online transactions that can include web logs, transaction emails and digital signatures. ## Backups are part of the obligation Backup is a compliance matter, not an IT preference. Backups must not overwrite prior period backups or logs, logs must state how long each medium is kept, and you must **periodically test that backed-up records can actually be restored** into a readable format. Offsite backup is encouraged, preferably in Canada. If required records are lost, destroyed or damaged, report it to the CRA and recreate the files within a reasonable period. ## Outsourcing does not transfer the duty Outsourcing does not transfer your record-keeping, readability, retention or access responsibilities — whether to a bookkeeper, accountant, internet or application service provider, or hosted platform. They must keep being met through software conversions, upgrades, a provider bankruptcy or a migration. Export a full, readable copy of your accounting data on a schedule; do not rely on a subscription lasting. On any platform (see [QuickBooks versus Xero](https://www.everstonecpa.com/quickbooks-vs-xero-canada)), the discipline is the same. ## The bottom line Going paperless is permitted, and for electronic originals required. In return the system must act like a records system: readable, located or reproducible in Canada, imaged to a controlled standard before paper is destroyed, backed up with tested restores, and complete enough to trace any summary figure to its source. Get those right and the [retention clock](https://www.everstonecpa.com/blog/digital-record-keeping-cra-requirements) takes care of itself, and a [review or audit](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) becomes a short job. Confirm the CRA’s current requirements before destroying originals. Sources - [Canada Revenue Agency — IC05-1, Electronic Record Keeping](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic05-1/electronic-record-keeping.html) - [Canada Revenue Agency — Keeping records](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records.html) - [Canada Revenue Agency — Keeping books and records of crypto-assets](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide/books-records-crypto.html) General information for Canadian business owners, current as of July 2026. It is not tax, legal or accounting advice and creates no client relationship. Rules change and every situation differs, so [speak with a CPA](https://www.everstonecpa.com/book-online) before acting. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online) ### Keep reading [How long to keep CRA records →](https://www.everstonecpa.com/blog/digital-record-keeping-cra-requirements) [CRA audit triggers →](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) [Accounting & bookkeeping →](https://www.everstonecpa.com/accounting-services) [Put one question to a CPA →](https://www.everstonecpa.com/quick-question) FAQ ## Frequently asked questions **Does the CRA accept scanned receipts?** Yes, if the images meet the applicable national standard of Canada. Imaged paper source documents may then be disposed of and the images kept as permanent records. **Can I store my records on a server outside Canada?** The CRA does not treat records kept abroad and accessed from Canada as records in Canada. It may accept a readable, useable copy made available in Canada, and the Minister may authorize keeping records elsewhere. **If I print an electronic invoice, can I delete the file?** No. Where documents are initially created, transmitted or received electronically, those documents constitute records that must also be retained electronically. A printout is not a substitute for the electronic record. **What does an acceptable imaging program require?** A log of the imaging date, signatures of those authorizing and performing it, what was imaged and whether and when originals were destroyed; indexing software to locate any record; commercial-quality images legible on screen or paper; and equipment to view or reproduce them. **Are backups a CRA requirement or just good practice?** They are part of the obligation. Backups must not overwrite prior backups or logs, logs must state retention periods, and restores must be tested periodically. Offsite backup is encouraged, preferably within Canada. **Does using a bookkeeper or cloud platform transfer responsibility?** No. A person keeping records electronically is not relieved of record keeping, readability, retention or access responsibilities by contracting the function out. The taxpayer must also ensure requirements continue to be met through third-party changes such as software conversions, upgrades, bankruptcy or migration. ## Going paperless and not sure the system would survive a review? Tell us your software and how you keep receipts now. A CPA replies by email within one business day with the set-up we would use and a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies within one business day. Need more? A 45-minute **Advice Call** is $225 plus GST, credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. 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