Cloud based accounting programs such as Xero, Quickbooks and Sage (among others), are becoming more popular. Canada Revenue Agency requires that any financial record which was created electronically, must be maintained electronically. What this means is that you must have access to the software which was used to create any financial records. If you cease using a software product, how do you continue to have an electronic record, available for the six years or so which CRA can ask to have access? You would not want to have to continue paying a monthly subscription for years after you change accounting programs.
Find out what the procedure is for getting electronic access to your records if you leave that platform. Then you’ll know if you have a problem. Can you download all your records to Excel for example? Simply printing out documents that CRA might ask for will not work.
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