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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 glossary article shows which aspects need to be considered when digitizing documents and provides step-by-step instructions for practical implementation.
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.
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.
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.
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.
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.
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.
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.
The principles for the proper management and storage of digital documents (GoBD) stipulate:
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.
In principle, there is nothing to be said against digitizing documents - on the contrary: digital copies make archiving and access much easier. However, not all documents may be stored exclusively in digital form. For certain documents - such as notarial deeds, land register extracts or notarized certificates - the original is still required for legal reasons. Although these may be digitized, the digital copy does not replace the original. Trading books, opening balance sheets or annual financial statements must also be kept in the original. A digital copy alone is not sufficient here. It is also important that strict requirements are adhered to for so-called replacement scanning (the legally compliant digitization and subsequent destruction of paper documents) - such as audit-proof archiving and complete procedural 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:
Thorough procedural documentation is not only a legal requirement, but also an important tool for optimizing internal processes.
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.
Digitized files are subject to the same retention periods as paper documents. In principle, the following applies:
Since 2025, a shortened period of eight years has applied to accounting documents. The period begins at the end of the calendar year in which the document was created. A secure, auditable archiving system is essential for legally compliant storage.
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.
The archiving of digitized documents should be legally compliant and audit-proof. The use of suitable software solutions that meet GoBD and GDPR requirements is recommended. Clearly defined deletion periods, access controls and regular data backups are important. Digital archives not only offer protection against data loss, but also significantly better retrievability and clarity. Workflows can also be automated and internal processes made more efficient - a key advantage for modern, paperless working environments.
OCR (Optical Character Recognition) converts scanned images of text documents into searchable and editable files. The document is first processed optically - contrasts are enhanced, noise is removed and text areas are separated from the background. The software analyzes the character structure and compares it with known font patterns. Modern systems also use intelligent recognition mechanisms to correct errors and process even complex layouts precisely. This results in digital documents that can be efficiently searched and further processed.
Text recognition for handwriting essentially works in a similar way to printed text - with one crucial difference: as every handwriting is individual, the character matching step, i.e. character recognition, is much more complex. Modern OCR systems use deep learning models or transformer architectures (e.g. CRNN or TrOCR) that have been trained with millions of handwritten characters. This enables them to recognize different writing styles and irregular letter shapes. Finally, Intelligent Character Recognition (ICR) is used to correct potential errors in context and further increase accuracy. Ultimately, however, the recognition quality of OCR depends heavily on the legibility of the handwriting in question.
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.
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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