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An accounting roadmap for going digital is a dated list of five things: what records you have, which tool will hold them, how you’ll test it, when you’ll switch, and how you’ll keep the old data readable. Most small Canadian businesses can do it in a few months. The order matters more than the speed.
What do you write down before picking software?
Start with an inventory. List every place a financial record lives today: the filing cabinet, the shared drive, the owner’s email, the payroll provider, the bank portal. For each one, note the format and who can open it.
This is dull, and it’s the step most people skip. But the CRA expects records to be kept in Canada, in a readable form, for six years after the end of the last tax year they relate to. You can’t plan a move until you know what has to move.
Add a column for what each record is. A supplier invoice, a pay stub and a bank statement are kept for the same six years, but they tend to sit in different places and get lost at different rates. Who would notice if one vanished?
What does an accounting roadmap look like month by month?
Here’s a plan for a small firm. Adjust the months to your own year end.
| Stage | What you do | How you know it’s done |
|---|---|---|
| 1. Inventory | List records, owners and formats | One sheet that covers every source |
| 2. Choose | Test export, tax codes and payroll on a trial file | Sample data comes out in a common format |
| 3. Parallel run | Enter a month in both systems | Totals match, tax lines match |
| 4. Cutover | Start the new system at a clean date | Opening balances agree with the old books |
| 5. Keep the past | Archive the old data and note software versions | Someone has opened the archive |
Stage three is where a roadmap earns its keep. A parallel run shows you the problems while the old system can still save you.
How do you test the numbers in a parallel run?
Use outside figures. For payroll, the payroll deductions calculator is handy. Three Ontario employees paid $2,000 every two weeks should cost you about $1,665 to remit per pay in the payroll remittance calculator, which counts what you hold back plus your own CPP and EI share. If the new system says $1,500 or $1,900, something in the setup is off.
For sales tax, feed a few old invoices through and compare them with the GST/HST calculator. A $2,400 Ontario purchase should show $312 of HST.
These are estimates for simple cases. They’ll miss benefits, taxable perks and unusual pay items.
When should you switch payroll and books?
Pick the start of a pay period, and preferably the start of a year. CPP and EI stop at yearly maximums. In our calculator a $100,000 Ontario salary reaches $4,646.45 of CPP and $1,123.07 of EI. Switching in June means the new system needs each person’s year-to-date totals, or it may keep deducting past the cap. January avoids the whole problem.
Books are easier. Many firms start at a fiscal year end so the opening balances are the closing balances, and nobody has to split a year across two systems.
What goes wrong with these roadmaps?
People plan the purchase and forget the exit. If the new vendor changes terms in year three, can you leave with your data? Ask that before you sign. We couldn’t confirm any product’s export terms, so get them in writing.
Name one person who owns the roadmap, with a date for each stage. Plans without an owner drift, and a missed date should bring a conversation, not silence.
Another trap is planning for the whole business at once. A phased move, payroll first or sales tax first, limits the damage when one piece fails.
Where the numbers come from
Record rules come from the Canada Revenue Agency’s business pages on keeping records and Information Circular IC05-1 (February 2020). The payroll and HST figures come from this site’s calculators, which hold 2026 federal and Ontario data. They are estimates and don’t replace the CRA’s own payroll tables.
Frequently asked questions
How long does moving to digital accounting take?
We can't give a reliable figure. A small firm can plan in a few months, but the time depends on how many records and systems you have.
When is the best time to switch?
At the start of a pay period, ideally in January for payroll. Books often move cleanly at a fiscal year end.
What is a parallel run?
Entering the same period in the old and new systems and comparing the totals before you rely on the new one.
How long must I keep the old records?
The CRA says six years from the end of the last tax year they relate to, with some longer exceptions.
Can I phase the move?
Yes. Doing payroll or sales tax first limits the damage if one piece goes wrong.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.