Digitize documents: Guidelines, implementation and archiving

The digitization of documents offers a wide range of benefits - from more efficient work processes to a more sustainable use of resources. But how does the digital transformation of paper documents succeed? This blog post shows which aspects need to be considered when digitizing documents and provides a step-by-step guide for practical implementation.

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What is the digitization of documents?

The digitization of documents describes the process of converting paper documents into a digital format such as a PDF. Various technologies such as document scanners or smartphone cameras are used for this. The advantages are obvious: digitized documents are easier to access, more efficient to archive and more secure against physical loss.

But digitization is more than just scanning documents. It also requires a well thought-out concept for organization and storage. With the right strategy and the right tools, a long-term increase in efficiency can be achieved. In addition to technical implementation, compliance with legal requirements also plays a key role, particularly in areas such as data protection and audit security.

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Why does it make sense to digitize documents?

More security‍

Digital documents are less susceptible to physical damage such as fire or water. In addition, compliance with standards such as GoBD and audit security enables legally compliant storage. Data protection management software can help to restrict personal access and effectively protect sensitive data. Thanks to secure cloud systems and encryption technologies, all documents can be stored securely and protected against loss at the same time. In addition, digital systems often offer the option of customizing permissions and logging access precisely.

Greater flexibility‍

Digitized documents enable location-independent working and improved collaboration. Whether working from home, on the road or in the office - digital processes ensure quick and easy access. Modern software solutions enable teams to work on documents simultaneously, track changes and seamlessly integrate communication processes. Functions such as the digital signature of contracts enable flexible and accelerated workflows. They also promote sustainable practices by significantly reducing paper consumption.

Work more efficiently‍

Digitized documents can be organized and archived more quickly thanks to automated processes. Effective document management also makes it easy to search, sort and share digital files. Best practices show that companies such as property management company Stocky achieve up to 90% time savings when finding information.

By using modern technologies such as OCR (Optical Character Recognition), content can be automatically recognized and classified. This not only saves time, but also resources. Recurring tasks such as assigning documents to specific projects or categories can be automated.

More space in the office‍

Not the most relevant factor, but also not insignificant: analog documents take up a lot of space. Fewer filing cabinets cluttered with folders create space for a more structured and clearer working environment. Digitization not only ensures order, but also lays the foundation for the paperless office and enables better use of office space.

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Areas of application for the digitization of documents

In principle, all paper-based documents can be digitized if certain requirements such as the GoBD guidelines and audit compliance are met (more information in the next section). However, not every document may be destroyed after digitization.

Documents with probative value or special legal status‍

Originals of notarial deeds, securities or inheritance contracts as well as customs documents or documents with evidence should continue to be stored physically, as these documents often have a special legal status. In the event of a dispute, they serve as evidence, although not all courts accept only digital copies. It is therefore advisable to seek legal advice in case of doubt to ensure that all legal requirements are met when digitizing documents.

In addition, it is essential to check industry-specific requirements to ensure that the documentation complies with legal requirements. The healthcare sector, for example, is subject to particularly strict regulations that require precise planning and implementation of digitization. A careful analysis of the legal framework is essential for the correct handling of documents in digital and physical form.

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What needs to be considered before digitizing?

Compliance with the GoBD guidelines‍

The principles for the proper management and storage of digital documents (GoBD) stipulate:

• Traceability: Documents must be clearly archived and stored in a change-proof manner.
• Prompt capture: Documents should be digitized within 10 days.
• Forgery protection: Digital copies may not be subsequently altered.
• Individual recording obligation: Each entry or record must be individually traceable.
• Completeness: All relevant information must be included and no data must be lost.
• Order: Archiving must be logically structured and clear.
• Accuracy: The data must correspond to the actual circumstances and must not be incorrect.
• Probative value: Digital copies must be secured in such a way that they can be recognized as evidence in court in the event of a dispute.

Compliance with these guidelines is crucial in order to meet legal and tax requirements. In Germany in particular, electronic documents are subject to strict requirements that ensure proper storage. You can find out more about this in the official guidelines of the Federal Ministry of Finance. Companies should ensure that their digital systems comply with current standards and are regularly audited. 

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Process documentation‍

Detailed documentation of the scanning processes and technologies used is essential. It serves as proof of proper digitization. The process documentation should contain the following points:

• Description of the hardware and software used
• Detailed representation of the scanning process
• Logging of access rights and changes
• Definition of responsibilities within the company

Thorough procedural documentation is not only a legal requirement, but also an important tool for optimizing internal processes.

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Retention obligation and audit security‍

Electronic documents must be stored in such a way that they can be checked at any time. This includes the use of audit-proof systems such as PDF/A formats. It is important that all changes are logged and stored in a traceable manner. Companies should ensure that their digital archives comply with current legal standards in order to prevent potential legal disputes.

According to these regulations, the following documents must be retained:

• 10 years: books and records, inventories, annual financial statements and management reports, accounting records, invoices, tax documents.
• 6 years: Commercial letters (incoming and outgoing correspondence relating to a transaction), other documents that could be relevant for taxation.

The retention period, for example for a receipt, begins at the end of the calendar year in which the document was created. There are also industry-specific requirements, including in employment law and for employment contracts.

To ensure that your digital archives are legally compliant and audit-proof, you can find a detailed overview of the requirements for retention obligations and the legal basis on the official website of the Federal Ministry of Finance.

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Digitize documents: Step-by-step

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Step 1: Choice of hardware & software

• Hardware: Opt for scanners or cameras that deliver high scanning quality. Paper documents can also be scanned using a suitable app. Scanners with an automatic feeder are particularly suitable for large quantities of paper documents.
• Software: Use a program or tool that automatically archives and indexes the documents. Many tools also offer integrated OCR technologies that make the digitization process more efficient.
• Service provider: For large paper archives, it is worth working with professional providers for scanning. These often offer additional services such as data classification and legally compliant storage.

Step 2: Preparing & scanning the documents

• Prepare documents: Sort, clean and remove staples. Damaged documents should be handled carefully so as not to impair the scanning process.
• Scanning or photography: Use suitable devices and applications for high-quality digital copies. Make sure that all relevant content is clearly legible.

Step 3: Organization and archiving

• File naming: Meaningful names and folder structures make organization easier. A standardized naming scheme helps to find documents quickly.
• OCR technology: Use text recognition to make content easier to search. Modern applications can also extract text from handwritten notes.
• Backup: Back up files in the cloud or on servers. Regular backups are essential to avoid data loss.

Step 4: Managing digital documents‍

With a digital filing system, which functions as a document management system (DMS), digital files can be stored and managed. These systems often offer practical functions such as automatic contract analysis and reminders for deadlines.

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Conclusion‍

The digitization of documents brings considerable benefits for companies and private individuals. From greater security and increased efficiency to more flexible collaboration - the switch to digital processes pays off. It is crucial to use the right technologies and strategies.

A solution like ContractHero offers you all the tools you need to digitize and manage contracts and other documents securely and efficiently.

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