how to reduce business operational costs with esignature

What are the Cost Saving Benefits of ESignature?

What are the Cost Saving Benefits of ESignature?

Electronic signature or esignature solutions are one of the major trends in the business world now. Their applications provide numerous benefits to enterprises. However, the primary element that drives the adoption of esignature solutions all over the world is the cost-saving benefits of esignature.

The passing of the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000 was a notable milestone. After the ESIGN Act, many other legislations in different countries recognized the legal status of esignature solutions. Therefore, the demand for esignature solutions is increasing gradually. 

What are the Cost Saving Benefits of ESignature?

What are the ways in which enterprises can get cost-saving benefits of electronic signature? There are many explanations for this question. For example, the costs of paper are no longer a part of the organization’s operational expenses when it uses esignature solutions. The following discussion would dive into additional ways in which esignature reduces business costs.

For your information, the theme of this discussion would focus on benefits from esignature solutions that translate into cost savings in the long-term for enterprises. The discussion would also present the opportunities for businesses with the long-term usage of esignature solutions. 

The cost-saving benefits of esignature for businesses are one of the foremost factors for their popularity. However, there is no clear agreement regarding the ways in which businesses can realize cost-saving benefits from esignature solutions. Here is an outline of the different approaches through which esignature ensures considerable savings in operational expenses. 

There are a number of reasons to adopt electronic signature. Here are the top 10 reasons why you should adopt Electronic Signature for Your business.

  • The digital process saves time and money

The first benefit through which esignature reduces business costs is the digitization of the document approval process. The preparation of a document and transferring it to all stakeholders in a transaction for signatures is an intensive task. In addition, the process of printing the signed documents for physical storage is a highly time-consuming process.

The estimated cost of the document approval process is over $17 for each record. This estimate is without consideration of the administration costs. Therefore, esignature solutions can help you save a lot of money. Esignature solutions support electronic authentication of documents through smart devices. In addition, esignature software also provides the benefit of secure storage of documents in a safeguarded cloud platform.

  • Better opportunities for overseas trade

The cost-saving benefits of electronic signature solutions for businesses are also evident in the facility for easier overseas trade. Previously, inter-state or international trade involved signing documents in person. In such a case, the presence of a verifying authority and sending documents through courier services were the norms.

You can clearly perceive the amount of time consumed for international trade. With the introduction of esignature solutions, businesses don’t have to depend on these time-consuming processes. In addition, there is no need for businesses to employ people for serving as authorities to verify transactions in international jurisdictions. The travel expenses for going to another state or country for getting a document approved and signed are no longer necessary.

Multiple parties could take part in a transaction from any corner of the world with the help of esignature solutions. All the parties could modify, draft, sign, or edit a document from the convenience of their computer or smartphones. So, the assurance of transparency remains intact alongside delivering prolific cost-saving benefits for all parties involved. 

Also Read: Digital Signature vs Electronic Signature

  • Safeguards from unwanted penalties

Speaking of transparency, it is another prominent factor for the cost-saving benefits of esignature solutions for businesses! Business contracts and agreements include a collection of documents that the customer should sign. Manual verification and approval of the stack of documents could lead to higher chances of error.

In addition, you may miss out on the errors that can subsequently lead to the cancellation of the contract or agreement. That surely means a loss for the business, doesn’t it? Esignature platforms track every document throughout its journey in a transaction. As a result, they can provide prompt notifications upon the identification of any error.

So, esignature solutions could definitely help you from unwanted cancellation of contracts and projects, thereby leading to higher profitability in the long-term. Identification of incomplete or inappropriately filed contract documents is also another answer to how to reduce business operational costs with esignature. Businesses could ward off concerns of unwanted fines and penalties for discrepancies in the contract.

Esignature software also helps in tracking the complete authentication history of documents to present better accountability of transaction participants. The tracking of authentication history can provide clear insights regarding the signatory for a document and the time and place of signing. The level of transparency in business transactions improves with esignature solutions, thereby reducing the concerns of unwanted overhead costs. 

  • Limited errors lead to higher savings

The next important pointer that explains how to reduce business operational costs with esignature solutions refers to a lack of errors. Research has shown that over 30% of business documents have certain errors. These errors are responsible for causing many other issues that lead to inconvenience and, most dangerous of all, delays.

Time is a crucial asset for every business, and losing even a second could mean losing a business opportunity. Sometimes, certain errors can demand the re-establishment of a whole process for addressing the errors. As a result, the business would turn up consuming additional resources, thereby piling on the operational expense burden.

On the other hand, an electronic signature solution helps a business maintain comprehensive control over the document’s approval and signing process. The outcome of this benefit of esignature solutions is the immediate identification of errors as soon as they occur. Managers could address the errors proactively with the help of esignature solutions, thereby saving considerable money for a business. 

It is important to look into the security factors while choosing an electronic signature solution for your business. Here are the top points you should consider while choosing an e-signature vendor.

  • Savings on the costs of procuring physical materials

The cost of procuring paper and other tools for document printing and signing is very high in the conventional signature process. Cost-saving benefits of esignature solutions emerge primarily from the lack of any need for paper or printing and photocopying. Esignature software does not demand any additional resources other than smart devices for using the software. If we look at a one-time transaction, the savings may seem quite meager. However, when you look at one year of savings in the cost of paper and printing and photocopying materials, the difference is quite huge! 

  • Saving time means saving money!

The cost-saving benefits of esignature solutions also emerge from the time saved for business transactions. Faster approval and signing of documents with esignature solutions enable businesses to complete their transactions at a better rate. Subsequently, businesses could move from one project to another project seamlessly without worrying excessively about the signature formalities, which generally consume a major share of a business’s working time.

The savings in time translate into profits from multiple projects in a specific timeframe as compared to the previous scenario. Time-consuming tasks such as drafting documents and document approval don’t take too much time with esignature solutions. Therefore, businesses could be able to realize improvement in their productivity by using esignature solutions. According to a recent survey, esignature software helps in reducing the turnaround time of the document approval process by around 80%. It seems like a favorable proposition for businesses, doesn’t it?

  • Faster payments

The faster contract turnaround time is an explicit benefit of esignature solutions. However, how does this benefit turn into cost-saving benefits of esignature solutions for businesses? Quick execution of contracts with multiple signers helps in faster payments. Faster payments from contracts indicate prominent restrictions on the overhead costs that a business has to bear before receiving payments. Businesses across a wide range of industries claim an almost 400% increase in the speed of their sales cycles with esignature solutions. 

  • Assurance of data security

Security mechanisms of esignature solutions are definitely a welcome feature. However, security is also responsible for the cost-saving benefits of esignature software for businesses. The security of documents stored on esignature solutions takes away the need for storage space for business documents.

In addition, businesses would not have to spend on maintenance of the business documents they store in esignature solutions. The assurance of security combined with the cost-saving benefits are clearly evident reasons for businesses to adopt esignature solutions. Furthermore, the in-built disaster recovery mechanisms and reliable storage of esignature software solutions take away concerns for additional costs in the recovery of lost data. 

Also Read: Top 10 Uses of Electronic Signatures

  • Productivity leads to profitability

Finally, we can note that the cost-saving benefits of esignature primarily arise from their impact on the productivity of a business. Productive enterprises would substantially generate better profits, thereby compensating for the operational expenses by the business. In addition, esignature solutions also help in a better experience for clients of a business that leads to the development of strong bonds between business and client. Therefore, businesses could also gain long-term cost-saving benefits through the reduction of customer complaints and issues with document signing. 

Final Words

On a concluding note, the cost-saving benefits of esignature definitely present a valid proposition for businesses in present times. The competitiveness in the existing business arena alongside the rise of digital transformation as the key to business success present adequate reasons for adopting esignature solutions. Most important of all, esignature solutions are legal and highly secure. Almost every business could leverage these features for accumulating savings over the long-term.

It is essential to note that adopting an esignature solution would not show immediate results in operational expense savings. Businesses have to understand that esignature solutions simplify the complexities existing in paper-signing processes. The benefits in cost savings from esignature solutions would become evident over a particular period of time. So, if you want to save operational expenses, then learn more about esignature solutions right now!

Posted by Brian Felix, 0 comments