5 Document Scanning Mistakes Your Business Can Make and How to Avoid Them

Organizations rely on document scanning to simplify business operations, improve information accessibility, and maximize sensitive data security. Converting physical files into digital documents frees up office space and boosts operational efficiency.

However, many businesses make costly errors during the scanning process. Such mistakes can lead to security risks, compliance issues, compromised information, and wasted resources. Avoiding these five document scanning mistakes will help keep your records management system organized, efficient, and legally compliant. 

What is Document Scanning and Why Do Businesses Need to Do It?

Document scanning is the process of converting paper files into electronic records for easy storage, retrieval, and management. Industries such as finance, law, healthcare, government, and education utilize scanning to digitize files.

Modern business operations depend on document scanning for many reasons, including:

• Staying compliant with pertinent local laws and regulations
• Keeping business operations running smoothly and efficiently
• Protecting sensitive information from bad actors who might misuse it
• Saving office space and lowering physical storage costs
• Preventing documents from deteriorating with age
• Making information available via remote access for those who need it

Additionally, scanned documents make collaboration and data-sharing easier while protecting vital data from disasters like fires or floods.

Sounds great, right? So where is the downside?

Let’s explore the five biggest document scanning mistakes businesses make, what kinds of problems they cause, and how to avoid committing them. 

1. Not Following Records Retention & Compliance Laws

One of the biggest mistakes your business can make when scanning documents is failing to obey records retention and compliance laws. Federal, state, and industry-specific regulations dictate how long companies must retain certain records and the protocols for their storage or destruction. Every business has a legal responsibility to store its records according to these regulations. Noncompliance can result in legal penalties, data breaches, and a loss of credibility.

Why Compliance Matters:

Noncompliance with records retention regulations can lead to significant financial penalties and legal consequences. 

For example, in the healthcare industry, the Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009 significantly increased the consequences of Health Insurance Portability and Accountability Act (HIPAA) violations. In addition to increasing monetary penalties, HITECH made medical providers’ business associates directly responsible for HIPAA violations.

 

HIPAA violations in healthcare can result in fines reaching hundreds of thousands of dollars or more. At the same time, financial institutions risk severe fines, penalties, and reputational damage for failing to comply with SEC and FINRA regulations. Mastering compliance in electronic records management and observing proper retention practices is crucial to avoid legal trouble for you and your business.

How to Avoid This Mistake:

• Understand federal, state, local, and industry-specific records retention regulations.
• Implement a records management strategy involving secure storage and timely disposal of outdated files.
• Partner with a reputable professional document scanning provider to ensure your organization’s legal compliance.
• Regularly audit your digital records to keep up with changing compliance standards.

2. In-House Handling of Document Scanning

While managing document scanning in-house may seem like a cost-effective solution, it often results in inefficiencies, errors, and security risks. Many businesses lack the equipment, expertise, time, and manpower necessary to scan and store large volumes of documents accurately.

Common Issues with In-House Scanning:

• Outdated, slow, or insufficient scanning equipment or software
• Frequent document jams
• Network issues and connectivity problems 
• Lack of trained personnel, leading to poor-quality scans
• Skewed, misaligned, and incomplete scans
• Disruption of daily business operations
• Higher long-term costs due to inefficiencies and wasted resources
• Inability to index and categorize scanned documents properly

How to Avoid This Mistake:

• Partner with a professional document scanning provider offering high-quality imaging, secure data handling, and indexing services.
• Evaluate the cost of scanning documents in-house versus outsourcing to experts.
• Implement proper training and careful resource allocation if in-house scanning is necessary.
• Invest in automation tools to improve your internal scanning process efficiency.

3. Skipping Document Organization

A poorly organized scanning process can lead to further headaches. Common document scanning mistakes, such as misplaced and mislabeled files, result in wasted time and difficulty retrieving critical documents. Without a proper labeling system, you might find it impossible to locate specific digital documents when you need them. That undermines the entire purpose of scanning in the first place!

How to Avoid This Mistake:

• Develop a standardized labeling system before scanning.
• Categorize and index documents based on business needs and accessibility requirements.
• Use document management software to automate indexing and improve searchability.
• Implement metadata tagging to enhance document retrieval and organization.

The Role of Optical Character Recognition (OCR)

OCR technology allows you to convert scanned documents into searchable text. When you can search your indexed documents’ full text instead of just their file names, you can quickly and easily locate specific information or documents within your company’s digital archive. Investing in OCR-based document management software—or partnering with a professional scanning provider who fully digitizes your documents into searchable images—can save significant time and improve efficiency.

4. Keeping Your Backups Onsite

Relying solely on onsite backups exposes your business to risks such as data loss due to natural disasters, cyberattacks, fires, or equipment failure. Without secure offsite or cloud-based backups, companies risk losing essential information permanently.

How to Avoid This Mistake:

• Implement a hybrid strategy using both cloud and offsite storage services.
• Regularly back up scanned documents in multiple secure locations.
• Collaborate with a document management provider that offers secure offsite storage and disaster recovery solutions.
• Test backup and disaster recovery plans regularly to confirm you can restore lost or deleted data quickly and efficiently.

5. Failing to Vet Providers

Choosing the wrong document scanning provider can result in poor-quality scans, substandard indexing, security breaches, and project delays. Many businesses fail to properly assess a provider’s security measures, technology, and industry experience before outsourcing their scanning needs.

How to Avoid This Mistake:

• Research potential providers and request references.
• Verify that the provider complies with industry standards and security protocols.
• Ask about their experience, technology, and ability to handle sensitive information securely.
• Request a sample scan or pilot project to evaluate the provider’s quality and efficiency.
• Look for certifications such as HIPAA compliance or SOC 2 accreditation for data security.

What to Look for in a Provider

A trustworthy scanning provider should offer the following:

• Secure facilities with controlled access
• High-quality imaging and OCR technology
• Experience in handling industry-specific compliance needs
• Transparent pricing and service agreements

Let the Professionals Help Your Organization

Avoiding these document scanning mistakes is crucial for your business to maintain regulatory compliance and data security.  Let us help you digitize your files, manage your electronic records, and implement a foolproof records retention process. Contact us today to discover more about our scanning services.