In this guide, we will talk about electronic signatures and why your business should make the switch from the ‘traditional’ mode of signing to an electronic one.
We live in a tech-savvy world where most businesses take technological aid to perform daily operations, streamline tasks, and lessen manual work.
Yet, they continue to use the ‘traditional’ mode of signing a piece of paper to validate all agreements. In fact, most organizations follow the strategy of printing digital documents, getting them signed, and scanning them back to retain the soft copy – wasting both time and resources.
However, thanks to advancements in technology, signatures are not exclusive to pen and paper.
Let’s discuss what electronic signatures are and why it is essential to migrate towards the latest signing trend.
What Are Electronic Signatures?
An e-signature is basically an electronic expression of a signature. It doesn’t necessarily have to replicate our handwritten signature but can take any form such as a symbol, a recorded message, or a process similar to the ‘click to accept’ checkbox.
The key takeaway is to authenticate the document’s writing and impose the said liability on all parties involved.
E-Signatures are also legally binding. This means that the signatures are lawfully recognized after approval from The Uniform Electronic Transactions Act (UETA) and the ESIGN Act.
Combined, both regulatory bodies allow the use of e-signature to replace handwritten ones.
The Importance of E-Signatures in Business Today
Electronic signatures are a highly beneficial protocol for businesses today. Let’s take a look at some advantages of adopting the model in your business strategy.
1. Less Paperwork
One of the main benefits of migrating to e-signatures is the lack of paperwork. With everything being digitally incorporated, many businesses continue to store bundles of ‘signed’ papers in file cabinets.
The result: Overflowing cabinets and lots of paperwork to deal with!
E-signatures help get rid of the paperwork by storing each document digitally.
E-signatures also reduce the manual hassle of finding documents or scanning them before sending them to another party. Since they are digitally stored at all times, you only have to click the ‘send’ button to share with others without worrying about postage and stamps.
2. Saves Time
Just imagine how much time it would take to get a single document signed by multiple parties – especially if there is a commute involved.
If you choose to use e-signatures, you can get the signing done within minutes, even if the signatory party is located in another part of the world.
Meanwhile, you can use the time saved on many other things that will help enhance your business model.
3. Cost Saving
Did you know that the unnecessary cost of paper and printing is the costliest activity of any business?
- An average office worker uses 10,000 sheets of paper annually
- It can cost up to 31 times the original cost to send information on paper
- 7.5 billion documents are created, and 15 trillion copies are made each year
Moreover, the U.S. Securities and Exchange Commission (SEC) is predicted to save $1.5 billion in the next decade from their recent decision to go completely paperless in their operations.
The NHS has also initiated its Paperless2020 vision, which may result in savings of £4.4 billion.
Simply put, integrating e-signatures and gradually shifting towards a paperless route can help your business save a good amount of money in the long term. Instead of wasting money on paper and copying, the money saved can further improve and upgrade business operations.
4. Environmental Friendly
Similarly, going the paperless route can bring an environmental-friendly solution to your business process. By making your business paperless, you will reduce paper use, and eventually, you will become an environment saver.
Consumers also favor companies that adopt eco-friendly solutions over their competitors. So integrating e-signatures will help you save trees and project a positive impression to the world.
5. Safe and Secure
Dealing with paper documents imposes a responsibility on the business owner of keeping the papers safe from theft, loss, and tampering. However, when dealing with digital documents, there is no concern about documents being destroyed or replaced.
Additionally, e-signature tools have digital encryption in place and will ensure your data remains safe from hacks and breaches at all times.
6. Legally Abiding
Most countries worldwide have legalized e-signatures and accepted them, just like they would a handwritten signature. Therefore, signing a document with an electronic signature verifies the signatory’s intention and abides it legally.
These signatures are more acceptable in case of a legal dispute, thanks to the log or the audit trail associated with the e-sign.
7. Client Satisfaction
Lastly, every business aims to keep their clientele happy and satisfied with their services. By using e-signatures, you offer your customers a fast, reliable, and up to the mark service that will keep them coming back for more.
Moreover, concerns about COVID are rising all over the world. While consumers are shying away from physical interaction, businesses are also marketing their services online to reduce the pandemic’s impact.
An e-signature will give your clients the ability to sign anytime, anywhere, and from any device. It will also keep any of their hesitations regarding the virus at bay and allow them to resume business processes in a safe manner.
Are You Ready to Make the Shift to Electronic Signatures?
As you can see, making the shift towards electronic signatures can make the signing process more user-friendly, fast, safe, and convenient for all parties involved.
Simply put, using an electronic signature is a great idea, so take the decision and make the shift towards newer ways to sign off!
Good luck, and let us know your thoughts on the e-signature protocol.
