Document storage – the right way when it comes to safekeeping

Read more in this guide, which summarizes the most important key points for document storage.

why digital document storage is more fun – facts and rules

Here’s a summary of the most important points:

• The GoBD regulates the retention periods for documents; depending on the type of document, these are between 6 and 10 years
• The GDPR requires compliance with certain deletion periods; usually after the original purpose of use has expired
• Document life cycle and document storage
• Hot and cold data: also relevant for documents and files

Careful planning requires a clear understanding of the type of documents and data. The keyword here is document lifecycle.

The document life cycle describes the various phases that a document goes through in the company. The cycle begins

• with document creation or capture,
• leads through the access phase (processing) to the
• document storage
• to the deletion of the documents.

This life cycle concept is important for document management: to organize processes and use information efficiently. The document lifecycle is organized digitally with a document management system (DMS) and an archive. For more effective document storage, it is now important to record the types of documents commonly used in your company. Make a sketch and write down the answers to the following questions:

• Which documents reach the company or are generated there?
• Which document types are available, invoices or HR documents, etc.?
• Which departments need which access (read and/or write) to these documents during this time?
• Which retention periods apply to which type of document?

You now have an initial idea of how the document life cycle is structured. You know which documents are required by which department and how long they should be stored. This, combined with a second, practical differentiation by document type, gives your company a structured document filing system.

Hot and cold data: also relevant for documents and files

Since a document only represents one data record in a database, the division into “hot” and “cold” data and therefore also documents makes perfect sense. What is meant by this?

If we talk about “hot/cold documents”, we have a second classification for document storage: namely in terms of access frequency, availability, storage duration and importance of data and documents for processes within an organization.

• Hot data and documents

A company’s hot data are frequently accessed documents. They contain business-critical information that must be available quickly. These documents are often needed to make quick decisions. Sometimes access must also be possible regardless of location.

• Cold data and documents

Users rarely access cold documents. Fast access is not necessary. These documents are often stored on inexpensive hard disk drives or in inexpensive cloud storage. Examples of such documents include archived content, completed processes or outdated documents that are only stored to comply with legal regulations.

Distinguish between the documents and make a note of which ones fall into which category. This will make it easier for you to choose the type of document storage.

What is important during document storage

Two regulations play a decisive role: the General Data Protection Regulation (GDPR) and the Principles for the Proper Keeping and Storage of Books, Records and Documents in Electronic Form (GoBD).

Retention periods

In Germany the GoBD and other legal regulations (AO, HGB etc.) require document retention periods of 6 to 10 years. Here are the deadlines for some typical document types:

10 years for

• payments on account
• Delivery bills (if the delivery bill is also the invoice)
• invoices
• Accounting vouchers
• Outgoing invoices
• Depreciation documents
• Bank statements
• Annual financial statements etc.

6 years for

• Quotations
• Import/export documents and customs documents
• Audit reports
• Commercial & business letters
• And other documents that are important for taxation

In Germany, the retention period always starts at the end (31.12.) of the calendar year in which the document was created or delivered.

Data protection and the GDPR

The General Data Protection Regulation (GDPR) plays a special role in document storage. Documents containing personal data may only be stored for a specific purpose. Provided consent has been given for data processing, incoming invoices, for example, may be stored for 10 years. Once this period has expired, the purpose of storage no longer applies and the documents must be deleted.

The central need-to-know principle is also important in the context of the GDPR. This means that you only store the data and documents that are absolutely necessary. At the same time, you ensure that the documents are stored confidentially, i.e. can only be read by authorized persons and applications. This requires a roles and rights concept in accordance with the GDPR. Obviously, document storage is a very extensive topic in the context of the General Data Protection Regulation. HR employees and managers in particular should be adequately informed.

Benefits of digital document storage

Efficient document storage is not only a legal necessity, but also an opportunity for companies to optimize internal processes. The digital transformation of this area brings order and structure to document management. The mere fact that the life cycle of documents – from creation to deletion – is now available in its structure both improves collaboration and speeds up decision-making processes. The distinction between hot and cold data helps to use resources wisely and maximize the availability of information. In short, proper document storage is a key to success in the digital world.