Most businesses are gradually embracing digital transformation, which refers to integrating technology into several aspects of their operations. Among the most critical digital tools companies use are electronic signatures (e-signatures), also known as digital signatures.
As what their name implies, e-signatures are the electronic form of wet signatures. Regardless of your location, such signatures enable you to sign legally binding contracts and other important papers that need your authorization, resulting in faster processes. However, e-signature laws vary among different countries, although most share basic principles with regard to signing of documents.
E-signatures have numerous advantages to organizations that use them. Below is a discussion on how businesses can benefit from them. Read on.
1. Enhance Security
Security is one of the reasons why you should sign documents electronically. Although most people consider handwritten signatures or scanned copies of handwritten signatures the golden standard of authenticity, e-signatures offer additional security. E-signatures are difficult to forge, and organizations that use them can easily detect even the most minor adjustments and alterations. Moreover, e-signatures are typically accompanied by an audit trail that includes the IP addresses of the signatories, date and time of each of the signatures, as well as all the changes made during and after signing, among others. Thus, they’re easily verifiable, keeping your business safe from fraud.
2. Boost Operational Efficiency
E-signatures eliminate the tiresome back-and-forth processes of signing hard copies that rely on handwritten signatures.
Most businesses draft their documents online; hence, finalizing agreements virtually helps one to sign and send documents without the need to print, sign, scan, and, then, resend them to relevant parties. Their virtual nature allows for faster reviewing, approving, and signing of documents. Moreover, e-signatures ensure that you’re able to sign all appropriate fields before executing the agreement, eliminating the chances of some pages lacking signatures due to human error.
3. Increase Business Mobility
E-signatures contribute to business success by overcoming physical barriers. The virtual nature of e-signatures supports digital nomads and remote workers, making them highly mobile and increasing their reach. Therefore, you can quickly review team member contracts or board resolutions online and sign them as you wait in line for a cup of tea. Software such as jSign can allow you to sign documents from wherever you are, making it a fast and convenient way of closing deals.
4. Save Time
E-signatures eliminate the unnecessary wait of finalizing contracts, saving time and improving business performance. While wet signatures require in-person arrangements and an almost endless back and forths, e-signatures allow you to create a link that facilitates speedy document turnaround time.
Also, when paperwork bearing manual signatures gets lost, you’ll have to repeat the entire process, increasing the chances of legal liabilities. However, you can attach e-signatures electronically to a proposal or contract, and receive it back within short periods, offering your business more flexibility in predicting project completions.
5. Cut Costs
E-signatures are one of the ways you can use technology to reduce paper wastage, thereby cutting costs. Using e-signatures introduces paperless signing of documents in your business, eliminating the expenses incurred on paper, printing, and scanning.
Moreover, e-signatures help minimize the number of employees performing tasks like printing, signing, scanning, tracking, emailing, distributing, and storing business documents. Furthermore, reducing labor during the signing process minimizes the financial risks brought about by human error.
6. Simplify Human Resource Processes
E-signatures can significantly impact your business’s human resource processes. Hiring suitable applicants for a post requires you to wade through several documents, like application letters, resumes, and employment agreements, among others. E-signatures can help guarantee more efficient and organized recruitment and hiring processes by eliminating the need to print, scan, and mail contracts and forms to candidates.
7. Ensure Regulatory Compliance
Companies must adhere to different regulatory requirements to comply with government standards. Therefore, following all regulatory compliance rules in your business transactions is crucial. Keeping your business documents intact and without tampering can help avoid fines and lawsuits. E-signatures help by offering a clear audit trail.
8. Speed Up Turnovers
Using e-signatures can help your employees conclude sales agreements faster. E-signatures eliminate waiting for documents to be delivered to clients, as they can be approved within seconds. That said, quick turnovers can assist you in building your business’s reputation, vouching for your competency in your area of expertise.
9. Improve Customer Experience and Loyalty
E-signatures can allow you to sign your documents anywhere and anytime, speeding up transactions, which can satisfy clients. Remember that happy and satisfied customers would be encouraged to become loyal to and promote your business.
10. Track Workflows and Guarantee Efficient Contract Management
Using e-signatures in your business can help you track workflows and pinpoint the status of your documents. Therefore, you’ll know if your documents have been received, approved, or signed online with just a few clicks. Moreover, e-signatures help support contract management by automating and simplifying processes. You can use them to centralize contract management by allowing you to observe several agreements.
Most businesses these days appreciate electronic signatures as they significantly impact business success. E-signatures can help your business cut costs, as well as save time and resources. Moreover, they allow you to track your workflows and minimize human errors by eliminating all the tedious back and forths that come with traditional signatures.