Modern technological advancements have had a prominent influence on the way of conducting business worldwide. The intervention of technology has helped in bringing about many critical changes in enterprises worldwide. So, if you are still wondering ‘why electronic signature’, then there are many things which are missing out on!
The arrival of electronic signatures has provided paperless solutions to one of the most intensive tasks of an enterprise i.e. paperwork. The cost and time factor involved in the creation, formatting, processing, storage, and maintenance of paper documents is a formidable negative aspect for the productivity of an organization.
Also Read: Cost Saving Benefits of Electronic Signature
Therefore, it is important to reflect on all the other potential reasons for using e-signature. The following discussion would present a basic impression of electronic signatures and the important reasons to use e-signature solutions.
What is an Electronic Signature?
Before we move forward in our search for answers to ‘why electronic signature’, it is important to reflect on the definition of electronic signature. Basically, you just need to know that an electronic signature is data in any form (sound, text, or symbol) associated or attached logically to a document and an individual uses it for signing a document electronically. It could be a token, a smart card, or an electronically typed signature that you can use for secure identification.
In addition, it also provides a cost-effective and efficient method for signing documents digitally. You need to know that the benefits of e-signature enable the transformation of hard copy of a document into digital form. Then, you can use the digital document for signing it in a way to preserve the integrity of the original document and the signer’s identity. There are literally thousands of definitions for electronic signatures, depending on the context.
Check out our previous article to know more about Electronic Signature.
So, it is reasonable for you to encounter confusion regarding the differences between e-signatures and digital signatures. As a matter of fact, digital signatures are a type of electronic signature and have distinct traits in terms of legal status. In the case of e-signatures, you have to provide additional evidence for proving their legal status.
Answering “Why Electronic Signature”
However, digital signatures do not need any such requirements for proving legal status. So, are these factors enough to drive your interest in electronic signatures? Most likely, No! So, let us focus on the following pointers that showcase the importance of electronic signature.
-
Better Security
One of the first claims made by enterprises against the proposition of ‘why use electronic signature for your business’ relates to security. Enterprises, small or big, have to transfer confidential and sensitive information for signing and receiving back.
As compared to conventional methods such as postal service, fax system, or internal mailing within an organization, e-signatures are secure. Electronic signatures involve the use of encryption for sensitive documents, thereby safeguarding them from any unauthorized modifications.
-
Comprehensive and Detailed Audit Trail
The next important factor for considering the need for electronic signature is the availability of a clear audit trail. You can access an in-depth audit trail for e-signatures that can provide complete transparency regarding the modifications in the document. Therefore, you can clearly perceive the signatories of the document and the time and location from which they sign.
The audit trail is a prominent benefit that provides a definitive answer to ‘why use electronic signature’. It is also important to note that awareness and recording of the signing process could help in safeguarding an organization in terms of legal and compliance perspectives.
-
Improved Time Management
Electronic signatures are not preferred only for security and legal validity aspects but also for their contribution to time management. Many areas of business operations require exceptional speeds and electronic signatures are capable of providing this benefit. How? By cutting out on the use of paperwork and ensuring faster processing of documents, electronic signatures can save a lot of time.
The most important factor is that you don’t have to wait longer for receiving signed documents. Some readers might be wondering about the possibility of errors due to such rapid pace of transactions with electronic signatures. On the contrary, importance of electronic signatures becomes more prominent with the facility of better accuracy.
Signatories would have to fill up the required fields in a document carefully before signing it electronically. If there are any missing fields, then you can notify the signatories for filling up the required fields. As a result, electronic signatures can reduce the probabilities of errors considerably thereby contributing positively to time management.
Going paperless is a new trend in the current digital era. Check out the top reasons to go paperless by adopting e-signature and how it will benefit your business!
-
Seamless Integration with Existing Systems and Processes
Among the many answers to ‘why use electronic signature’, the ease of doing business is probably a striking one. The efficient integration of electronic signature processes into the business can help in streamlining the payment and invoicing process.
In addition, electronic signatures can transform the approaches for communication between your business and other organizations, customers and employees. Furthermore, electronic signature solutions also help in streamlining many other business operations. Therefore, you can enhance customer experience considerably with the use of electronic signature.
Most important of all, the easy and flexible integration of e-signature solutions with existing systems prevents any concerns of downtime. You can use e-signature solutions for creating documents in various formats followed by uploading to a wide range of file sharing sites, thereby improving their accessibility.
-
More Convenience
The final, yet most crucial aspect about electronic signatures that showcases their efficiency is convenience. Sending documents for electronic signature in multiple languages and device-agnostic operation flexibility with e-signatures are prominent benefits you can’t ignore. Therefore, you can overcome the conventional barriers for conducting various business operations with electronic signatures.
Final Words
Now, it is clearly evident that the conventional paper-based signature process does not cope well with the modern business landscape. As you can see above, the answers to ‘why use electronic signature’ are quite straightforward. E-signatures provide a promising boost to the growth of businesses in this era of digital transformation.
Most important of all, you have the benefits of security, cost-effectiveness, and seamless compatibility with existing systems. So, if you want to capitalize on these benefits of electronic signatures and drive the competitive advantage of your business further, then now might be the right time. Find out reliable e-signature solution providers with a proven track record and experience in the industry.
