Canadian data residency for accounting firms
Updated October 12, 2026
The short answer
Data residency means client records and documents are stored in data centres located in Canada. It is not the same as security or compliance, and it often doesn't cover every service a vendor uses, so ask which data is stored where, including backups and any AI features.
What residency does and doesn't tell you
Storing data in Canada keeps it under Canadian jurisdiction and answers a question many Canadian clients ask. It doesn't by itself mean the data is secure, and some processing (such as AI features, or email delivery) may run elsewhere. A clear vendor will say exactly which parts are where.
Questions to ask any vendor
- Where are client records and uploaded documents stored?
- Where are the backups, and are they kept in more than one location?
- Are any features, such as AI assistants, processed outside Canada, and what is sent?
- Is data encrypted in transit and at rest?
- How long are deleted files recoverable, and how long are records retained?
How Clerra answers
Clerra stores client records and documents in Canadian data centres (the Montréal region), keeps encrypted nightly backups in two Canadian cities, Montréal and Calgary, and test-restores them every week. AI-assisted features such as email summaries and the in-app assistant are processed in the United States, which is disclosed on the security page.
Frequently asked questions
Is it a legal requirement to keep client data in Canada?+
Not generally for private firms, but some clients and provincial rules prefer or require it, and many firms choose Canadian storage as a matter of trust. Ask your regulator or counsel if you have a specific obligation.
Where does Clerra keep backups?+
Encrypted nightly backups are kept in two Canadian cities, Montréal and Calgary.
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