What Not to Digitize
Manuals. One batch of papers you can likely toss is manuals. PDFs of most manuals for appliances and gadgets are available online through the manufacturer. Occasionally there's value in keeping a copy, however. I've found that in reselling items (particularly self-constructed goods from a popular Swedish purveyor of post-college furnishings), I have more negotiating power if I can provide the buyer with the instructions guide, warranty, and receipt. If there's a chance you might resell a purchase down the road, take the time to scan the documents and save a copy.

UPCs. Sometimes, to cash in on a warranty, especially for small appliances and consumer goods, you typically need to summon an original UPC codes, and because you would never need a UPC for anything else, it's a clear example of a "document" that would have zero value in digital form.

Some receipts. Receipts are tricky. For any tax-deductible purchase, keep the original receipt and scan or photography a copy. (You might also log the purchase in a spreadsheet and type into it the file name of the scanned copy or photo.) I hang onto receipts for things that I might reasonably find faulty, but I don't keep a back up copy. The effort it would take doesn't meet my threshold for payoff. But I do keep receipts for big-ticket items. And I do save digital copies of receipts for online purchase because that work is already done for me. All I have to do is save and rename the file how I want it.

How to Make a Digital Copy
Multifunction printers (or MFPs) can be your primary scanning device. When you have a stack of papers to digitize, use the feed function as much as possible to make the work go quicker.

You can tackle your scanning project in batches, based on the type of document. Scan tax forms all at once. Make copies of insurance certificates and deeds at the same time. Treat fragile documents separately when you can take extra care to ensure a clean and dry work area.

Receipts should be taped to standard-sized paper (8.5- by 11-inches in North America). Group relevant receipts together and write or type on the top of the paper what they were for; for example, "2011 April business trip to Santa Fe," or "2010 Q2 office supplies."

As much use as you'll get out of a good MFP, don't discount the power of your smartphone's camera. For spur-of-the-moment record keeping, it's your best tool by far.

How and Where to Store Digital Copies of Documents
Save your files to the hard drive of your primary home computer. Hopefully, you back up your files regularly (there will be a future Get Organized article on this very topic). Regardless of whether you back up your files to a secondary source, do yourself a favor and add a cloud-based file-syncing service to your system anyway.

When I decided to write this article, I got nervous about whether it was wise to tell people to put copies of their passports and paystubs on a cloud-based server. So I asked PCMag.com's security expert Neil Rubenking for some advice. "It totally depends on the service," he said. "Here's the best scenario. Your file-syncing service encrypts whatever data you send at your computer, sends the encrypted data via SSL, and keeps it in encrypted form on the server. When you want the data, it transmits back to you via SSL and decrypts it at your endpoint. The vendor has no access to the data, no way to decrypt it."

But, he cautions, that's not how all services work. "Here's what sometimes happens instead. The data gets transmitted as-is, but the vendor says it's secure since they use SSL. It's encrypted at the vendor's end. When you want it, it gets decrypted and sent back to you via SSL. There's potential to intercept the transmission. It's possible that a data breach at the vendor's end could expose your data. So, for your personal stuff, main thing would be to investigate how the solution you're using protects your data during the whole trip from your computer to the server and back."

For important personal documents, some services that we feel have adequate security are SugarSync (free for 5GB, 4.5 stars), a PCMag Editors' Choice for file syncing; Trend Micro's SafeSync for Home (from $23.95 per year for 20GB, 3 stars); and Syncplicity Personal Edition (from $15 per month for 50GB).

What To Do With the Originals
When you don't need the original papers anymore, shred them and recycle them.

When you do need to keep the original documents in addition to the digital file, you'll need a tight and clean system for storage. Actually, you need a system for storing papers that tend to pile up quickly and frequently but aren't a high priority for scanning, too.

Family archives. Delicate documents that you intend to pass down generations, like original birth/marriage/death certificates, deserve special treatment. I'm no expert on preservation, so see the U.S. National Archives' paper preservation tips instead. In addition to protecting those documents from light and moisture, you might also invest in an inexpensive fire-proof lock box.

Short-term storage. For bits of paper you collect frequently and don't necessarily want to digitize on the spot, such as receipts and monthly invoices, I recommend using a very low-tech solution that doesn't create clutter but is very easily accessible. In my house, a have a few places where I tuck paper out of sight until I have a chance to scan it. An ordinary cardboard shoe box in my linen closet houses warranties for small appliances. I keep receipts in a plastic folder—one side for everyday purchases and the other for receipts from vacations and traveling. I have another folder where paper-based recipes go until I have time to scan or type them. For all my short-term storage needs, I've used simple solutions that are easily accessible so that I never have an excuse for leaving a slip of paper on the kitchen table. The folder is just over there, on the bookshelf, and it will take me approximately six seconds to file it away until I have more time to scan it.

Longer-term storage. Once you scan and make use of the documents in short-term storage, you can likely shred or recycle them, or in the case of tax-applicable papers, move them to longer term storage.

If you have a filing cabinet at home, use it. If you don't have a filing cabinet (I don't), buy a simple accordion organizer for less than $20 from any office supply store. Big box stores, chain pharmacies, and greeting card stores often sell them as well. Accordion files blend right into bookshelves and do the same thing as a filing cabinet.

DIY Document Digitalization
So many businesses want you to pay them to digitize your documents; just mail it all in and they'll take care of the rest. But why should you? It's not terribly difficult to do it yourself if you approach the project in a well-reasoned way. The benefits can be enormous.