Both tax agencies allow scanned images to replace paper records, but only when the scanning process meets their conditions. The Canada Revenue Agency (CRA) says imaged records become the permanent records, and the paper can be destroyed, when imaging follows the Canadian General Standards Board standard; otherwise you keep the originals. The IRS, in Rev. Proc. 97-22, allows the paper to be destroyed after you have tested your electronic storage system and put procedures in place, including an indexing system and legible reproductions. ScanRoute Local, a Windows app from Automata Labs, handles the practical part on your PC: it splits combined scans into separate PDFs named from each page, holds unsure reads for review, adds a searchable text layer and writes a SHA-256 manifest of every file it saves.
This guide summarizes what each agency says, in their own words where it matters, and how to set up a scanning routine that supports those requirements. It is general information, not tax or legal advice.
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What does the CRA say about scanned records?
The CRA’s page on acceptable format and imaging paper documents starts from a default: “Generally, you must keep originals of your paper documents.” You can produce electronic images instead, and when you do, the CRA says you must make sure each image:
- is an accurate reproduction, intended to take the place of the paper document;
- gives the same information as the paper document; and
- does not obscure significant details because of limitations in resolution, tonality or hue.
On destroying the paper, the CRA is direct: if you have imaged your paper books of account and supporting documents according to the CGSB standards, “the images become the permanent records,” and you can destroy the imaged paper. If your business cannot meet those standards when imaging, it has to keep the original documents. The standard the CRA names is CAN/CGSB 72.34, Electronic Records as Documentary Evidence, and it points to Information Circular IC78-10 and GST/HST Memorandum 15.1 for more.
The same page says businesses using commercial software for smaller-scale scanning should make sure the scanned records meet the rules in the latest national standard, and that you should make backup copies of business information recorded on rewritable media such as computer hard disks.
What does the IRS say about scanned records?
The IRS covers electronic storage in Rev. Proc. 97-22. It applies to taxpayers who image their hardcopy books and records into an electronic storage system. Its main requirements for the system include:
| Rev. Proc. 97-22 requirement | In plain terms |
|---|---|
| An accurate and complete transfer of the hardcopy records | The image shows everything the paper did |
| Reasonable controls to ensure the integrity, accuracy and reliability of the system | Protection against unauthorized changes, additions, deletions or deterioration |
| An inspection and quality assurance program, evidenced by regular evaluations | You check the scans, regularly, and can show it |
| A retrieval system that includes an indexing system | You can find a specific record |
| The ability to reproduce legible and readable hardcopies | You can print a clear copy on request |
The procedure defines legibility as the observer being able to “identify all letters and numerals positively and quickly.” It also says an indexing system can be as simple as giving each stored document a unique identification number and keeping a separate database of descriptions.
On destroying the originals, Rev. Proc. 97-22 permits it after the taxpayer “has completed its own testing of the electronic storage system” showing records are reproduced in compliance, and “has instituted procedures that ensure its continued compliance.”
What do the two agencies have in common?
| Theme | CRA | IRS |
|---|---|---|
| Default | Keep the paper unless imaging meets the standard | Paper can go once the system is tested and procedures are in place |
| Image quality | Same information; details not obscured | Accurate, complete, legible and readable |
| Finding records | Records must be available to the CRA | Indexing and retrieval system |
| Integrity | Follow the national standard; keep backups | Controls against alteration, deletion and deterioration |
| Checking | Imaging per the CGSB standard | Inspection and quality assurance program |
Neither agency certifies a particular product. Whether your process meets the standard depends on your whole routine: how you scan, check, name, store and back up. If you are unsure, the CRA’s own advice applies: get legal advice before destroying paper records.
Preview every name, review every unsure read, and keep a SHA-256 manifest of what you filed.
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How can a scanning routine support those requirements?
The table maps each requirement to a step you can actually do and keep doing:
| Requirement | Practical step | Where ScanRoute Local helps |
|---|---|---|
| Legible, complete images | Scan at a resolution and mode where small print is sharp; check a sample | Holds documents whose zone read failed, shown with the zone crop |
| Indexing and retrieval | One document per PDF, a consistent name, a folder per client or year | Splits combined scans at Code 128 or QR separator sheets, blank pages or every N pages, and builds each name and folder from fields read on the page |
| Quality checks you can show | Review every unsure document; log the batch | Preview lists every proposed name and folder before anything is written; the inbox lists unsure reads, missing separators, bad names, duplicates and unreadable PDFs |
| Integrity of stored files | Detect later changes; never overwrite | Each commit writes a CSV manifest listing every file with its SHA-256 hash; originals are only read, and no file is overwritten |
| Searchable records | Find a receipt by vendor or amount | Adds an invisible text layer to upright scanned pages without text when an OCR language is installed |
| Backups | Copy the filed folders to separate media | Files are ordinary PDFs in your folders, so your usual backup covers them |
A SHA-256 manifest does not prove an image is accurate, but it lets you show later that a file has not changed since it was filed. Our guide to verifying SHA-256 hashes with certutil shows how to check one.
What does a simple month-end routine look like?
- Prepare the stack. Put a separator sheet between documents, or rely on blank pages if your copier scans them cleanly.
- Scan to a folder. Use the same settings each time. Our guide to file naming for scanned documents suggests patterns that sort well.
- Plan the batch in ScanRoute Local. Draw one zone over the reference line on the page; a pattern pulls fields such as type, date, client and number, and checks each one.
- Review the inbox. Fix or skip anything ScanRoute held back. OCR and barcodes can misread, so check each name before you commit.
- Commit and keep the manifest. Store the manifest CSV with the batch.
- Spot-check and record it. Open a sample of filed PDFs against the paper and note the date and result. That record helps show you check your scans regularly.
- Back up. Copy the folder to separate media.
- Decide about the paper. Only after your process meets the agency’s conditions, and with advice if in doubt.
Bookkeepers who split client paperwork every month will find more detail in our split scanned invoices and receipts guide.
Frequently asked questions
Does the CRA accept scanned receipts?
Yes, when the images are accurate reproductions that give the same information and do not obscure significant details, and imaging follows the CGSB standard the CRA names. If you cannot meet the standard, the CRA says to keep the originals.
Can I throw away receipts after scanning them for the IRS?
Rev. Proc. 97-22 permits destroying the paper after you have tested your electronic storage system and set up procedures to keep it compliant, including indexing, integrity controls, quality checks and legible reproduction.
Does ScanRoute Local make my records compliant?
No software can do that on its own. ScanRoute Local splits, names, files and hashes scans on your PC; compliance depends on your whole process.
Does ScanRoute Local upload documents?
No. It makes no network connection and has no account or telemetry. Your original PDFs are only read.
Try ScanRoute Local
ScanRoute Local is a one-time purchase in the Microsoft Store with a free trial. Run one month of scanned receipts through it, review the inbox, and keep the manifest with the batch. More detail is on the ScanRoute product page.
Split combined scans into separate PDFs named from the page itself. Nothing uploads.
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This article is general information about published CRA and IRS guidance, not tax or legal advice.
Last updated 20 October 2026. Published by Automata Labs, a software company in Canada.