What are the legal and regulatory issues associated with accounting software in Canada, if any?

Accounting software in Canada comes under the “computerized data processing system” definition. This means that, as a Canadian private company, you must comply with the Personal Information Protection and Electronic Documents Act (PIPEDA).

An accounting software must show that your system will comply with the legislation set out above by offering you reasonable assurances that it will do so – no matter what your IT environment. This is also known as the “reasonable expectation” test.