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Digital document archiving for your company

Table of contents

What is document archiving?

Every company produces numerous documents every day - from invoices and contracts to tax-related receipts and emails. Even when a business transaction has been completed, this does not mean that the associated documents can be deleted or disposed of immediately. Legal retention obligations stipulate that certain documents must be archived for several years. 

In addition to legal requirements, there are many operational reasons for structured document archiving. Companies often need to be able to access old contracts, business letters or tax-relevant documents even years later - whether for internal audits, tax evidence or legal safeguards. Organized, secure and easily accessible archiving makes this process considerably easier.

Document archiving therefore ensures that all important documents are systematically stored and protected against loss, manipulation or unauthorized access. This is not just about pure storage, but also about the long-term traceability and retrievability of information. Whether physical or digital - an efficient archiving system ensures that companies store their documents securely and can access them at any time if required.

Definition and meaning

Document archiving refers to the structured and long-term storage of documents, regardless of whether they are in physical or digital form. The aim is to store documents securely, make them quickly retrievable when required and meet legal and internal company requirements for storage.

There are basically two main types of archiving:

  1. Physical archiving: Documents are stored in paper form in archive rooms or special storage areas. Fixed standards apply for categorization, inventory and protection against damage caused by water, fire or unauthorized access. Traditional storage usually takes place in folders, cabinets or specialized archives with protective measures such as climate control or secure rooms.

  2. Digital archivingDocuments are either created directly in digital form or subsequently digitized. The storage takes place in special archiving systems or cloud solutions that enable fast searches, audit-proof storage and automated processes. A distinction is made between different forms:

    • Document archiving: The structured storage of digital documents so that they can be retrieved when required.
    • Audit-proof archiving: A specially secured form of archiving that complies with legal requirements and prevents tampering.
    • Long-term archiving: Particularly secure storage that enables access to old documents even beyond legal retention periods.

The choice between physical and digital archiving depends on the company's requirements. While paper archives are still necessary in some industries, more and more companies are turning to digital solutions as they are more flexible, secure and efficient.

The aim of document archiving

The aim of document archiving is to store documents securely and in a structured manner so that they can be retrieved at any time - both for internal company purposes and to comply with legal requirements.

One key aspect is compliance with legal regulations. Companies must archive documents relevant for tax or business purposes in accordance with the applicable retention periods. These documents may only be deleted after the deadlines have expired in order to comply with legal requirements.

Traceability and transparency are just as important. Documents must be stored in an audit-proof manner so that changes are logged and tampering is ruled out. This ensures that all archived information remains unchanged and can be checked at any time.

Another key objective is long-term availability. Documents must be retrievable and readable even years after they have been created - regardless of whether they have been archived digitally or physically. Secure archiving protects against data loss and ensures reliable use of important information.

In addition, a structured organization of archiving ensures that companies can maintain an overview, manage documents in a targeted manner and search them efficiently without getting bogged down in chaos.

Types of archiving (physical vs. digital)

Documents can be archived in both physical and digital form. Both methods have their own requirements, advantages and challenges. While physical archiving primarily requires space, protective measures and structured management, digital archiving offers a more efficient, flexible and often more secure alternative.

Physical archiving: Structured, but time-consuming

In physical archiving, documents are stored in paper form and must be sorted, classified and managed according to fixed criteria. To ensure long-term and secure storage, technical and organizational measures (TOM) are required, which include the following, for example:

  • Structural security measures: Protection against fire, water or other environmental influences through special archive rooms, fireproof cabinets or air-conditioned storage rooms.
  • Access controls: Lockable archives, access controls and logging to prevent unauthorized access.
  • Inventory and categorization: Documents are systematically filed in folders, boxes or special shelving systems and catalogued using registers, barcodes or digital recording systems.
  • Destruction guidelines: Once the retention periods have expired, documents must be securely and verifiably destroyed, for example by shredders or external document destruction service providers.

There are various methods of physical archiving, from simple storage in filing cabinets to specialized archive rooms for sensitive documents. However, this method has a number of disadvantages, including high space requirements, difficult searchability and the risk of damage or loss.

Digital archiving: efficient and future-proof

Digital archiving is based on the storage and management of documents in electronic form. It can be carried out using various systems, including

  • Cloud-based archiving: Documents are stored in secure cloud storage and can be accessed from anywhere. This method is particularly flexible and scalable, as storage space can be expanded as required.
  • CAS (Content Addressed Storage): A special storage solution for unalterable data that is often used in legally regulated industries. CAS stores documents in such a way that they cannot be subsequently changed or manipulated, which enables audit-proof archiving.
  • Local server and hard disk systems: Companies can manage digital archives on their own servers, which offers more control over the data, but also requires higher security measures.

Digital archiving is usually carried out using special archiving software or document management systems (DMS). These enable documents to be scanned, indexed and quickly retrieved using search functions. 

The next section goes into more detail about why digital archiving is considered to be the future of archiving and what specific advantages it offers over the physical method.

Digital document archiving: the future of archiving

Digitization is fundamentally changing the way companies work with documents. Business processes are becoming increasingly faster, more global and more data-driven. At the same time, the volume of documents, contracts and receipts that need to be managed and stored is growing. In a world that demands transparency and efficient data processing, structured and secure archiving is essential.

Legal regulations are also evolving to ensure greater traceability and security. Invoices, tax documents and business correspondence are increasingly being issued digitally and must be archived in compliance with the law. Manual filing systems quickly reach their limits here - digital solutions offer the necessary flexibility and efficiency.

Advantages of digital archiving

Digital archiving offers companies a modern and future-proof solution for efficient document management. One of the biggest advantages is availability regardless of location. Documents can be retrieved at any time, which speeds up work processes and facilitates collaboration - a decisive advantage in a world in which mobile working and global networking are becoming increasingly important.

Time and cost savings also play a major role. Digital archiving reduces the space required for physical files and eliminates the need for lengthy search processes. Thanks to powerful search functions, OCR technology and automatic indexing, documents can be found within seconds - an essential factor for efficient business processes.

It also enables automation of workflows. Documents can be managed in a targeted manner, forwarded automatically and integrated into operational processes. At the same time, archiving remains scalable, as cloud solutions offer flexible storage options that grow with a company's requirements.

Finally, digital archiving ensures greater transparency and control. A clear structure, regulated access rights and secure storage ensure efficient document management.

Digital archiving is therefore no longer an option, but a necessity for companies that want to assert themselves in an increasingly networked and dynamic economy. It creates the basis for efficient workflows, secure document management and long-term legal compliance.

Challenges and solutions

Although digital archiving offers many advantages, there are also challenges that companies need to consider when selecting and implementing a suitable solution. The right software must not only work efficiently, but also comply with legal requirements such as GoBD and GDPR. This includes the audit-proof storage of documents so that no subsequent, unnoticed changes are possible.

Another critical point is security against unauthorized access. Sensitive documents must be protected by user rights, encryption and access controls. At the same time, the system must offer a clear deletion strategy to ensure that documents are removed in compliance with data protection regulations once legal deadlines have expired. Regular audits and backups are essential to protect against data loss or hacker attacks.

The findability of documents also plays a major role. Without well thought-out indexing and powerful search functions, digital archiving can become inefficient. Finally, it must be ensured that all changes and accesses remain traceable. A good system logs who has viewed or changed a document and when in order to ensure transparency and protection against manipulation.

Choosing the right archiving solution therefore requires careful consideration of legal security, data protection, user-friendliness and automation. Companies should ensure that the system meets their individual requirements and enables secure, efficient and compliant document management in the long term.

Examples of applications in companies

In many business areas, digital archiving software is indispensable for managing documents securely and efficiently. 

  • Accounting: audit-proof archiving of invoices and tax documents, automatic deadline management, fast search
  • HR department: Structured filing of employment contracts, payslips and applications, access rights and automatic deletion periods
  • Sales & purchasing: management of customer and supplier contracts, orders and invoices, efficient search functions and workflow automation
  • Legal departmentTamper-proof storage of important documents, versioning and traceability of changes

In general, document archiving software ensures improved efficiency, transparency and legal certainty, as well as low administrative costs

Functions of document archiving software

Modern document archiving software offers much more than just the digital storage of files. It ensures structured, secure and efficient document management and helps companies to optimize work processes.

The focus is on central storage, which archives all documents in one place and prevents important documents from being scattered around. In addition, automatic capture and indexing ensures that documents are immediately recognized, categorized and assigned suitable keywords when they are uploaded. This indexing works in a similar way to an ISBN for books - each document is given unique descriptors so that it can be found again quickly later.

Another key element is the powerful search function, which is supported by OCR (Optical Character Recognition) technology and artificial intelligence. This makes even scanned documents searchable so that relevant information can be found within seconds. At the same time, the software offers detailed access rights and user roles so that only authorized persons can access certain documents or make changes.

A particularly important feature is versioning, which logs all changes to documents. This makes it possible to track who has made which changes and older versions can be restored if necessary. In addition, workflow management enables documents to be forwarded automatically, approval processes to be controlled and notifications to be triggered in order to minimize administrative effort.

Regular backups are created to ensure secure and long-term archiving. This means that documents remain protected and recoverable even in the event of technical failures or cyberattacks.

These comprehensive functions show that professional archiving software goes far beyond mere storage. It increases efficiency, improves security and ensures legally compliant document management - a crucial step for companies that want to future-proof their archiving.

Audit-proof document archiving: what does that mean?

Audit-proof archiving ensures that commercial and tax-relevant documents are stored properly, unalterably and verifiably. It ensures that documents cannot be manipulated or unintentionally changed during the entire retention period - usually between six and ten years.

In order to meet these requirements, audit-proof archiving must fulfill several criteria. This includes ensuring that documents are preserved in their original form and that changes are logged . Another important aspect is the technical security of storage. Systems must prevent documents from being changed or deleted unnoticed at a later date. Regular backups are also required to prevent data loss.

Audit-proof archiving not only ensures compliance with legal requirements, but also protects companies from legal risks. It ensures that all important documents remain reliably and completely retrievable for audits, tax purposes or internal company records.

Legal requirements for digital archiving

Digital archiving is subject to strict legal requirements to ensure that documents are stored properly and remain verifiable. One of the central regulations is the GoBD (principles for the proper management and storage of books, records and documents in electronic form and for data access). These stipulate that digital documents must be stored unalterably and be traceable at all times.

A key point of the GoBD is the principle of immutability. Documents may not be subsequently manipulated without this being documented. Companies must implement technical and organizational measures (TOM) such as access logs, versioning and secure storage solutions.

Equally important is the principle of traceability and verifiability. All business transactions - such as invoices, accounting vouchers or contract documents - must be archived in such a way that an expert third party can check the accuracy and completeness of the data at any time.

In addition to the GoBD, companies must also comply with the GDPR (General Data Protection Regulation). Personal data in particular may not be stored indefinitely and must be deleted after the specified retention period has expired. To ensure this, digital archiving systems should include an automatic deletion function or reminders for deletion deadlines.

In addition, specific tax and commercial regulations apply, such as the German Fiscal Code (AO) and the German Commercial Code (HGB). These regulate how long tax or business-related documents must be stored - usually between six and ten years.

Legally compliant archiving therefore requires not only reliable storage, but also a well thought-out system for access controls, changes and deletion processes. Companies should ensure that their archiving solution meets all relevant legal requirements in order to avoid possible penalties or tax disadvantages.

Technical basics

The right storage technology is essential for digital archiving to function reliably, securely and efficiently. Depending on the requirements, companies use different storage solutions, with cloud storage and content addressed storage (CAS) playing a key role.

Cloud storage - flexible and scalable

Cloud storage enables companies to store their documents on remote servers that are accessible via the internet. Specialized cloud providers take over the administration and maintenance of the servers, allowing companies to scale flexibly without having to operate their own infrastructure.

There are various cloud models:

  • Public cloud: Companies store data in a provider's data centers, which are also used by other customers. This solution is cost-efficient and scalable, but involves certain security risks.
  • Private cloud: Dedicated servers are used here that are provided exclusively for a company. This increases control and security, but requires more in-house IT resources.
  • Hybrid cloud: A combination of public and private cloud to store sensitive data internally and manage less critical data externally.
  • Multi-cloud: Companies use several cloud services from different providers to reduce dependencies and gain flexibility.

Cloud documents are accessed via web portals, apps or APIs, and access controls ensure that only authorized users can view or edit certain documents.

CAS - Fixed storage for unchangeable documents

In the CAS system (Content Addressed Storage), data is not managed using traditional file names or storage locations, but is uniquely addressed based on its content. Each file is given an individual identifier, which ensures that stored documents remain unchanged and cannot be manipulated or overwritten unnoticed.

A key advantage of CAS systems: Data can only be deleted after the specified retention period has expired. This is particularly essential for legally relevant documents such as invoices, contracts or accounting records. In addition, the unique addressing prevents duplicate or modified versions from being saved unnoticed.

CAS therefore guarantees a high level of integrity and audit compliance. CAS is therefore primarily used in industries with strict regulatory requirements, such as the financial and healthcare sectors or public authorities, where maximum data security is required.

Further technical measures for secure archiving

In addition to the choice of storage device, other technical functions play a decisive role in digital archiving:

  • Access controls: Only authorized persons may edit or view documents.
  • Retention policies: These define how long data must remain stored unchanged before it may be deleted.
  • Audit logging: All accesses and changes are automatically documented to ensure traceability.
  • Hardware and software protection: Encryption, redundant storage and security mechanisms protect against data loss, cyberattacks or physical damage.

The combination of these technologies creates a digital archiving solution that is both flexible and secure. Depending on their needs, companies can use cloud services for fast access or use CAS technologies to ensure audit-proof long-term storage.

Industry examples for document archiving

Digital archiving is particularly indispensable in the areas of finance, legal and procurement, as strict regulations apply to the storage and traceability of documents.

  • Finance: Banks, insurance companies and accounting departments archive invoices, accounting documents and tax documents in an audit-proof manner in order to meet legal requirements. Automatic deadline management and fast search functions make it easier to comply with GoBD and other regulatory requirements.
  • Legal: Law firms and legal departments manage contracts, court documents and legally relevant correspondence securely and traceably. Versioning and access rights ensure complete documentation and protect against unauthorized access.
  • Procurement (purchasing): Digital archiving enables the structured filing of supplier contracts, orders and purchasing documents. Automated workflows improve traceability and make it easier to adhere to compliance guidelines.

Digital archiving also plays a role in other industries such as healthcare, logistics and the public sector. Here, patient files, proof of delivery or administrative documents must be securely stored for the long term and retrievable at any time. An intelligent archiving system ensures greater efficiency, transparency and legally compliant document management across all industries.

How to successfully switch to digital archiving

The switch to digital archiving requires a structured approach to ensure efficiency and legal certainty. Companies should first carry out an inventory of their documents and determine which documents need to be retained. It is then important to draw up a retention schedule that takes into account legal deadlines and operational requirements.

The next step is to select a suitable archiving solution. A decision should be made here as to whether a cloud or on-premise solution is more suitable and which functions are required for secure and audit-proof storage. Once a system has been selected, the documents are migrated, during which existing documents are digitized, indexed and transferred to the new system. A clear structure and categorization helps to optimize retrievability and make workflows efficient.

CONCLUSION

Modern software systems make this changeover much easier by enabling secure storage, fast searching and automatic deadline management. They reduce manual effort, minimize risks and ensure clear, traceable archiving of documents.

ContractHero provides companies with particularly secure and intelligent document management software that guarantees the highest security standards via user roles and access restrictions. Automated workflows allow deadlines and reminders to be set so that documents can be deleted or processed in good time. ContractHero also stands out as contract management software as it facilitates not only the archiving but also the active management of contracts and important documents. Thanks to AI-supported analysis functions, retention periods are recognized, relevant documents are linked and receipts are easily assigned - for more efficient, transparent and legally compliant document management.

Sebastian Wengryn
CEO
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