Digitized receipts through scanning apps make bookkeeping easier, but Canadian business owners still ask, “Can I ditch the paper?” The short answer: yes—if you meet the Canada Revenue Agency’s (CRA) standards first.
1. What the CRA Actually Says
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CRA accepts scanned images as your “permanent records” when they comply with the Canadian General Standards Board (CGSB) imaging rules. Once those rules are met, you may destroy the original paper. canada.ca
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Your electronic copies must remain readable, reliable, and quickly retrievable for six years after the end of the tax year to which they relate (or two years after a corporation dissolves). canada.cacanada.ca
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Records must be stored in Canada unless you obtain written CRA permission to host them abroad. canada.ca
2. When It’s Safe to Shred
Follow these checkpoints before you toss a receipt:
| Checkpoint | Why It Matters |
|---|---|
| Image Quality | The scan must capture every detail—amounts, dates, vendor info. |
| Audit Trail | Dext/Hubdoc automatically time-stamps and locks files; verify this is active. |
| Backup in Place | Keep a redundant copy (cloud + local drive) in case servers fail. |
| Retention Calendar | Confirm the six-year rule is built into your file-retention settings. |
Tip: Hold the paper for 30–90 days after scanning so you can spot bad images early.
3. Receipts Worth Keeping Anyway
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Warranty & Return Proof: Original thermal receipts may still be required by suppliers.
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Asset Purchases: Large-ticket items (vehicles, equipment, real estate) often need original titles or contracts.
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Legal Documents: Shareholder or loan agreements usually demand wet-ink signatures.
4. Best Practices for Stress-Free Digital Record-Keeping
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Use a consistent naming convention (YYYY-MM-DD_Vendor_Amount).
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Export a full archive each quarter to an external drive kept in Canada.
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Document your scanning workflow so you can show auditors how accuracy is ensured.
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Review random samples monthly—blurred images? Rescan before shredding.
Bottom Line on Digitized Receipts
Once your Dext or Hubdoc process meets CRA imaging and retention rules, shredding routine paper receipts is perfectly acceptable—and it frees up shoe-box space. Unsure if your setup qualifies? Talk to your Compass CPA advisor before the shredder starts humming.
