Archiving Documents: Best Practices & Legal Requirements

Your Compliance Auditor Just Asked for All Files from 2019. Now What?

You get this email at 3:47 PM on a Tuesday:

“We need all vendor contracts from Q3 2019, email chains about the Casey project, and regulatory approval docs from August 2020. Can you have these ready by Thursday?”

Your first thought? This is going to be a problem.

Sure, those files exist. Somewhere. Maybe in that shared drive nobody’s touched since the project lead left. Or buried in someone’s email. Or in those banker’s boxes in the storage room that nobody wants to deal with.

Most companies handle document archive the same way people handle their garage—stuff things wherever they fit, promise to organize it later, and sincerely hope they never actually need to find anything.

Then the auditor shows up.

Archive Documents vs. Backup: What’s the Best Practice?

People mix these up constantly. Here’s the deal:

• Backups = copying your current data so you can get back to work after your server melts down
• Document archive = storing old, inactive documents because the law says you have to keep them

Different jobs. Different tools.

Backups are about tomorrow (keeping business running),
Archives are about yesterday (proving what happened).

Digital vs. Hard Copy Documents: The Storage Space Reality

Paper archives made sense when we had filing cabinets and admins who knew where everything was. Now? Not so much.

• Physical documents need climate control, space, and manual digging
• You can’t search them
• Finding a clause like “force majeure” becomes a treasure hunt

Digital archives solve the space problem but create new challenges:

• Software changes
• Obsolete file formats (e.g., WordPerfect 2001)

Scanning everything isn’t enough. Choose file formats that will still open in 10 years.

Digital Document Archiving and Retrieval

Start with the right question:
What are you legally required to keep, and for how long?

Not what might be useful someday. What do the laws demand?

• HIPAA: 6 years
• Sarbanes-Oxley: 7 years for financial records
• Employment records: Varies by state

Write a retention schedule. Example:

• W-2s: 4 years
• Board meeting minutes: keep forever

What Actually Works:

1. Inventory everything
2. Set clear retention periods
3. Get rid of expired junk

Stop paying to store documents that have no legal or business value.

The GDPR Consideration

Here’s the tricky part:

• GDPR: Delete personal data when it’s no longer needed
• Other laws: Require you to keep certain records

When these clash (e.g., ex-employee files), get legal advice. Don’t guess on compliance.

Retention Policies: Your Survival Guide

A retention policy tells your team what to do with different types of documents.

It should answer:

• How long do we keep sales contracts? (7 years)
• What about terminated employee files? (3 years)
• Email from the CEO? (Depends—treat as business record if relevant)
• Marketing brochures? (Delete—no compliance value)

Make it clear enough for a new intern to follow. Not so complex nobody reads it.

Why Management Software Is a Must

Done right, digital archives change everything:

• Search everything in seconds
• Access controls with real audit trails
• Disaster recovery via the cloud
• Lower storage costs (no more warehouse bills)

Common Problems (And How to Avoid Them)

The Digital Hoarder:
Keeping everything = searchable haystack
Solution: Follow retention schedules strictly

Format Death Spiral:
Today’s PDFs become unreadable
Solution: Use open standards (PDF/A, TIFF)

Metadata Disaster:
No tags = no findability
Solution: Enforce consistent file names/folders

Access Confusion:
No one knows who can see what
Solution: Archive access ≠ active file access. Define both.

Document Management Systems

A good DMS (Document Management System) should:

• Automate retention schedules
• Track document history
• Support legal holds (litigation freeze)
• Integrate with your tools

Don’t overbuild it. The best system is the one your team actually uses.

When to Securely Outsource Archival

Outsourcing can make sense if:

• You lack internal IT
• You need specialized compliance (e.g., HIPAA)
• You handle massive volumes of documents

Don’t outsource just because:

• You think it’ll be cheaper (rarely is)
• You want to dodge responsibility (you’re still liable)
• You don’t have a retention schedule (outsourcing can’t fix bad internal process)

Making an Archive Workflow Work for Your Business

Archive ≠ tech alone. It’s process.

• Train your team
• Review policies regularly
• Test: Can you find that 2019 contract?

If you can’t, fix the process before blaming the technology.

How Signus Helps

At Signus, we know contracts don’t live in isolation.
Our platform:

• Tracks document history
• Maintains full audit logs
• Uses Sigi, your AI contract assistant, to find what you need fast—yes, even those 2019 files your auditor just requested.

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Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on retention laws, GDPR conflicts, or compliance obligations specific to your business.