- How long do I need to store documents for?
Japanese Law mandates a 7 year retention period of financial records. In some special cases, the National Taxation Authority can order an extension of the retention period to 10 years.
- How do you ensure document security?
Paradigm has many layers of document security. Firstly, it is timestamped using the NTA-approved Amano method , which guarantees its authenticity and integrity. Secondly, all documents are encrypted using client-specific cryptographic keys and kept in a secure storage facility onshore. Thirdly, the document storage is segregated so that only you can gain access.
- Can we have a locally installed version of Paradigm for document security?
Please contact [email protected] for pricing on a customized installation of Paradigm on your internal servers or cloud.
- Does Paradigm replace our accounting software?
Paradigm is meant to work together with your existing software, with the ability to refer to General Ledger codes or make custom fields that relate to your specific entries in other accounting systems. Paradigm is a DMS designed to store documents, generate reports, and handle expenses and expense reports.
- What happens to our data if we stop using Paradigm?
Your data must be accessible for a minimum of 7 years as per NTA regulations. There is an option to keep your data dormant on Paradigm for a small yearly fee, and can be accessed at any time for audit purposes. You can also fully export all of your data, including Timestamps from Paradigm, though the ability to validate timestamps within Paradigm will not function for a dormant account.
- Can we run internal audits or expense reports using Paradigm?
Using the Advanced Search feature, you can run any kind of reporting you like, including expense reports. Go to our Demo page for a short demo of our system in action
- Why must Paradigm be JIIMA certified?
JIIMA certification means that a DMS like Paradigm is fully compliant with National Taxation Authority (NTA) requirements for digital storage of documents, and thus can ensure that all of your expenses and other documents will be accepted in an audit. Without certification, any DMS would simply be used for reference, but may not be used legally to support evidence of financial transactions.
- What’s the penalty for not using a certified DMS for digital documents?
While there is no penalty, you risk having the documents found to be invalid or essentially unusable for tax purposes. This means that some documents like invoices or receipts may not be accepted as proof of payment, and thus non-deductible. As such, some expenses may be disqualified thus aversely impacting your tax returns.
- What kind of documents must I store?
Any financial and related documents that will be needed in a financial audit should be stored in your DMS, such as Paradigm. This includes invoices, receipts, quotes, and any other documents to support financial transactions.
- Must I use a Document Management System (DMS)?
In short, yes. As per updated regulations, documents that originated digitally can no longer be printed out and filed away. Files issued via email, online, etc must be kept in a compliant digital manner using a certified DMS. If 100% of your current and future financial documents are on paper, you can continue to file them away in boxes and file cabinets, but once you have any digital documents, they must be stored in a compliant DMS.
