6 Compelling Reasons to Implement E-Signature Software
July 27th, 2023
E-signature software has become an essential tool for today’s businesses. Digital transformation is rapidly revolutionizing every corner of the business world. From AI-powered algorithms to remotely distributed workforces, businesses today navigate a dramatically different landscape than just a few years ago.
One of the key changes is the shift to electronic signatures (e-signatures). They have emerged as a crucial component in maintaining efficiency, security, and adaptability. E-signatures have eliminated the need for physical documentation and traditional sign-off methods, enabling an entirely digital workflow unhindered by the constraints of obtaining physical signatures. By integrating e-signature software, businesses stand to gain substantial benefits. This guide explains what e-signatures are and how e-signature software can help your business.
- E-signature software significantly boosts business efficiency and cost-effectiveness by eliminating the need for physical documentation, expediting contract execution, and streamlining workflows.
- The enhanced security measures of e-signature software, including unique digital fingerprints via PKI, audit trails, and enhanced legal compliance, help to mitigate risks associated with traditional signature methods.
- Integrating e-signature software improves the customer experience by offering fast, seamless digital interactions, aligning business processes with evolving customer expectations.
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What Is an E-Signature?
An e-signature is a legally binding indicant of consent or approval on digital documents or forms. This can be as simple as a typed name, a scanned image of a handwritten signature, or any other agreed-upon digital symbol. There are essentially two kinds of e-signatures. A digital signature, a specific type of e-signature, identifies and authenticates the signatory parties and guarantees that the original content of the document remains unchanged through an encryption method called public key infrastructure (PKI). While technical details of digital signatures involve complex encryption technologies, for most business scenarios, it’s enough to remember that all digital signatures are e-signatures, but not all e-signatures are digital signatures.
6 Reasons to Adopt E-Signatures in Your Business Operations
Integrating e-signature software into day-to-day operations offers businesses several valuable benefits. These include cost savings, increased efficiency, enhanced security, and superior customer experience. Here are six of the most important reasons to use e-signature software.
1. Cost Efficiency
Adopting e-signature software is highly cost-effective. With a paperless approach, businesses eliminate expenses associated with printing, mailing, storing, and retrieving paper documents. This process not only involves direct costs like ink and paper, but also indirect costs such as equipment maintenance, physical storage space, and postage for mailing documents.
Additionally, it frees up skilled employees who previously spend valuable time securing wet signatures, allowing that time to be redirected toward more valuable activities. The significant savings accumulated over time can be reinvested into growth-driving initiatives, fostering innovation, and enhancing competitiveness.
2. Saving Time
E-signature software rapidly expedites contract execution. Traditional methods involve sending physical documents via mail, awaiting their return, and manually recording their reception — a process that can take days or even weeks. However, e-signatures enable instant signing and transmission of documents, reducing the execution process to a matter of minutes.
E-signature software can track and manage documents. It sends notifications to relevant parties when it’s their turn to sign and when the signing process concludes, ensuring that documents do not sit idle while necessary parties gather information. This increased speed and organization significantly facilitates business negotiations, customer service, and overall productivity.
3. Enhanced Security
E-signature software provides superior security compared to traditional wet signatures. E-signatures eliminate the risk of lost hard copies, interception by unauthorized parties, or tampering during delivery. For documents requiring more stringent security, businesses can use digital signatures, which use a cryptographic technique — PKI — to ensure the authenticity and integrity of signed documents and verify the signatory’s identity.
Image Source: https://www.educba.com/public-key-infrastructure
PKI creates a unique digital fingerprint for both signatory parties and the document, rendering any post-signature modifications detectable. E-signature software also provides a comprehensive audit trail, documenting all user actions on documents, including who signed, when, and where. This heightened level of security and traceability effectively mitigates most information security risks associated with wet signatures.
4. Legal Compliance
Most governments and legal jurisdictions around the world, including the U.S.’s Uniform Electronic Transactions Act (UETA), ESIGN Act, and the E.U.’s Electronic Identification, Authentication and Trust Services (eIDAS) Regulation, recognize e-signatures as legally binding. By using e-signature software, businesses can ensure compliance with applicable regulations, affording themselves important legal protections.
E-signature solutions meet stringent legal requirements by design and offer features such as:
- Identity verification
- Comprehensive audit trails
- Certificate of completion
Besides legal protection against fines and lawsuits, compliance also enhances your organization’s credibility and trustworthiness in the eyes of clients and partners.
5. Increased Efficiency
E-signature software automation capabilities streamline business processes. By integrating with other software solutions your business uses, such as CRM or ERP systems, e-signatures enable efficient workflows and document management. The ability to sign documents directly within the applications you already use reduces manual tasks and minimizes errors.
Moreover, e-signature software includes features like templates for frequently used documents and automated reminders for signers, enhancing the overall efficiency of your document management system. Automation for these tasks enables faster decision-making, improved response times, and delivers an overall boost in productivity.
6. Improved Customer Experience
Today’s consumers expect fast, digital, and seamless interactions. Offering the convenience of e-signatures is an effective means of meeting evolving customer expectations. E-signature software eliminates the need for customers to print, sign, and send back documents, processes that often prove time-consuming and frustrating. Instead, customers can quickly and conveniently sign documents online, from any device. Additionally, reduced document turnaround times lead to faster completion of transactions and issue resolutions. Providing positive, technology-enabled experiences enhances customer loyalty, increases repeat business, and strengthens brand reputation.
Easily Integrate E-Signatures into Your Contract Management Processes with Contract Logix
Contract Logix’s comprehensive contract management platform integrates out-of-the-box with today’s most vital business applications including leading e-signature tools from Adobe Sign, Sertifi, and DocuSign as well as CRMs, and ERPs. With Contract Logix, your business can streamline contract management and enjoy top-of-the-line information security features.
Request a demo of Contract Logix today to learn more.
Looking for more articles about Contract Management? Check out our previous article “How to Choose the Best Contract Workflow Software“.
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