Document Management for GovCon: How to Organize Your Files to Pass Any Audit

In government contracting, documentation isn’t just paperwork—it’s proof of compliance, performance, and credibility. One misplaced file can slow down payments, delay renewals, or trigger findings during an audit. 

Whether you’re managing subcontractor invoices or security clearances, a solid document management system (DMS) is essential to staying compliant and audit-ready. 

This guide walks you through how to organize your documents so you can pass any audit with confidence. 

Step 1: Centralize Everything with a Document Management System (DMS) 

• Store contracts, invoices, certifications, and employee files in one secure, cloud-based platform. 

• Avoid using multiple drives, emails, or desktops for critical documents. 

• Consider platforms like SharePoint, Google Workspace, or Egnyte for scalable digital document management. 

Step 2: Implement a Naming and Version Control Structure 

• Every file should follow a consistent naming format: [Client][Project][DocumentType]_[Date]. 

• Track versions to avoid confusion (e.g., v1.0, v1.1, Final). 

• Restrict edit access to prevent accidental overwrites. 

Step 3: Classify Documents by Audit Relevance 

• Identify which records auditors typically request: 

• Invoices and payment records 

• Timekeeping logs 

• Certifications (ISO, OSHA, SBA, etc.) 

• Subcontractor agreements 

• Performance reports 

• Create a labeled audit folder in your file management system for quick access. 

Step 4: Automate Retention & Deletion Policies 

• Set automatic retention schedules to comply with FAR, DFARS, or agency-specific rules. 

• Use alerts for records nearing expiration (e.g., insurance certificates). 

• Automating these workflows prevents both data loss and over-retention risks. 

Step 5: Back Up and Secure Everything 

• Use encrypted cloud storage and regular backups. 

• Apply role-based permissions to ensure sensitive files stay confidential. 

• Review your access logs quarterly. 

Pro Tip: 

If your team is still juggling folders and email threads, it’s time for a scalable document management solution. Valkyrie Solutions helps GovCon firms design digital filing systems that keep you compliant, secure, and audit-ready year-round.