How to Turn Physical Documents into Digital Archives

From overstuffed filing cabinets to piles on your desk, physical documents can quickly accumulate, create clutter, and become difficult to handle without proper organization. For small business owners who likely have contracts, invoices, or receipts as paper documents, converting physical documents into digital archives can be a great way to increase space, minimize the risk of damage, and quickly locate files.

In this post, we outline how you can digitally archive your physical documents and what you should consider before getting started, which includes:

• Planning ahead before digitizing your physical documents
• Organizing your physical documents
• Looking for scanners with and/or use OCR technology
• Properly scanning your physical documents
• Changing the file type of optimized storage
• Optimizing the file names of your digital archive
• Storing digital files securely
• Making sure your digital archives meet compliance standards

What is a digital archive?

A digital archive is a collection of either digital materials or physical documents that have been digitized and stored electronically for long-term preservation. These items can include emails, photos, and videos that were initially created in digital format, as well as physical documents that can be scanned and converted into digital files.

One of the main goals of digitally archiving physical documents is to ensure their long-term preservation and continued accessibility. This process also allows multiple people to easily access and share the documents. Additionally, it helps keep items organized, making them easier to locate, and reduces the need for physical storage space.

1. Plan ahead before digitizing your physical documents

Digitally archiving physical documents can be a time-consuming process, especially since it requires careful planning. To make this process as smooth as possible, consider setting aside time in your schedule to dedicate just to this. You may also want to task a willing team member to sort through documents and help get things started.

As part of the planning process, you will need to arrange access to a reliable scanner. The last thing you want is to scan documents only to find that they come out low-quality on your computer. If you choose to purchase a scanner, which can be a great investment if you plan to digitally archive documents on a regular basis, it is important to consider the various types available on the market. Look for one that offers strong security features, can handle the volume of scanning required, and includes valuable features such as double-sided scanning and automatic feeders. Alternatively, visit The UPS Store near you for help scanning your documents.

2. Organize your physical documents

Organization is key when you are digitally archiving documents. Start by identifying the physical documents you want to organize and safely disposing of any unnecessary items, such as outdated notes, which you may have been holding onto but no longer need. Seeking out shredding services like those offered by The UPS Store can be helpful.

From there, categorize your documents to make them easier to store once they are uploaded to your device. As a small business owner, you likely have various records, including financial documents, employee files, and vendor receipts. Create piles for each category and determine appropriate labels and sub-labels that accurately describe them. For example, would you prefer to organize financial records by decade or categorize employee files as full-time versus seasonal? Consider doing so while they’re still in physical form, as establishing a clear labelling system in advance can help keep everything organized and save you time during the scanning process.

3. Look for scanners with and/or use OCR technology

Optical Character Recognition (OCR) is a technology that converts text-based images or documents into machine-readable text data, making it easier to search for specific words within the file. OCR can be particularly useful when you have multiple documents and limited time to search through them all.

Some scanners come with built-in OCR software, but you can also apply OCR afterward using specialized software, such as Adobe Acrobat Pro. Learn more here.

4. Properly scan your physical documents

After you prepare your physical documents and have an idea of how you’d like to digitally organize them, you are ready to move into the scanning phase. How you scan your documents is important, as it can impact the readability once it’s on your device. Before scanning, remove any staples, paper clips, or stickers/sticky notes, and flatten any folds in the paper for even scanning.

Next, make any necessary changes to your scanner settings to alter its resolution. Choosing a suitable resolution will depend on the type of document and its use:

• Low resolution (72-150 dpi): Produces smaller file sizes, which is helpful when you have limited storage or when documents are nonessential and won’t need to be preserved for a long period of time (e.g., internal notes, daily reports, etc.). The text may not be as sharp, and OCR accuracy often decreases at lower resolutions.
• Standard resolution (300 dpi): This is a popular choice and is typically recommended when you’re looking for a legible resolution without a huge file size. A downside is that very small text or certain illustrations may not be as clear as they would be at a higher resolution.
• High resolution (600+ dpi): if you have highly detailed documents that must retain fine details, such as legal documents, historical documents, or photography, a higher resolution may be necessary. Keep in mind that using a higher resolution may require a more advanced scanner, can take longer to scan, and will typically consume more storage space when saved.

If your scanner allows it, double-sided scanning can be useful when scanning a document that has important text on both sides. Rather than flipping the document around each time, this feature helps save time and effort.

Once you have scanned each document, review it for legibility and accuracy to catch any potential issues early.

5. Consider changing the file type of optimized storage

Depending on the number of documents you have and the storage you have accessible, you may need to convert files into smaller sizes or get creative with how you store them. For example, if you have several images, changing them from PNGs to JPEGs can help save space, especially when you don’t need those images to be extremely clear.

PDFs are often used for business documents, as they can be saved as multiple pages in one document and are searchable with OCR. Additionally, they are easy to share with others. If your file sizes are large, consider using compressed PDF formats to reduce storage requirements.

A TIFF (Tagged Image File Format) file is ideal for high-quality graphics, so if you plan to digitally archive images, such as artwork, this file size can preserve a high-resolution scan.

6. Optimize file names

Since you have already created your labels and sub-labels when organizing your physical documents, you can easily transfer them into folders that match the labels you decided on. For example, if you have a pile of invoices organized by year, your digital file system can use the format “Invoice_[year]_[client]” as the file name, making it easy to drag and drop files into the correct folders.

How you organize your digital archive is important so that you can easily find items. Try creating folders within folders, adding tags, and colour-coding file types for optimized accessibility.

7. Store files securely

Once your physical documents are scanned and labelled correctly, it’s essential to store them securely. As a small business owner, using cloud storage or an external hard drive can be an effective way to save space on your computer while making sure your documents are backed up. However, it is crucial to apply strong security measures for any storage solution you choose. This includes using strong passwords, enabling two-factor authentication, and applying encryption. If you prefer scanning and saving documents directly to your computer, make sure to perform regular backups. That way, you will always have access to your files in case of a computer virus or crash.

8. Make sure your digital archives meet compliance standards

There can be several rules and regulations that businesses must follow when it comes to how their documents are stored and for how long, so maintaining compliance with industry-specific rules and regulations is crucial for businesses.

For example, the Canada Revenue Agency requires most businesses to maintain records at their place of business and to retain records and supporting documents for at least six years from the end of the last tax year to which they relate.

To establish a compliant digital archiving system, small businesses should conduct thorough research to identify the specific regulations that apply to their industry.

The CRA also has a helpful resource for acceptable formats and backing up electronic files.

Scanning physical documents with The UPS Store

Reach out to The UPS Store at a location near you to learn how our team can assist you with your archiving needs. A variety of our locations offer services such as hands-free scanning and document shredding for items you no longer require. Contact us today!