Electronic Signatures are a tool you should evaluate to use in your business. Wikipedia defines this as data in electronic form, which is logically associated with other data in electronic form and which is used by the signatory to sign. These are not to be confused with digital signatures. A digital signature is a cryptographic mechanism that is used to implement an electronic signature.
Simplicity of Electronic Signatures
To us, the most significant advantage is simplicity. Just upload a document that needs to be signed, you sign it, then send it to your client for signing. No more printing, signing, and faxing back and forth.
Security is Paramount
Electronically signed documents have become more safe and secure than traditional paper documents. Embedded in the document is identifiable information on where and when you signed the document. These types of technological tools reduce the risk of paper document forgery.
Convenient and Quick
We can’t overlook the convenience of this technology. Our clients and business partners are geographically diverse. By using this method of transacting business, it’s quick and reliable. We can get a document signed the same day! Some providers offer mobile apps that can be used to review and sign documents.
The Legality of Electronic Signatures
Twenty-five countries, including the United States, Canada, Australia, Russia, China, and the European Union, electronic signatures are legally binding. There are two main pieces of legislation in the US that outline the legality of electronic signatures. These are the Uniform Electronic Transactions Act (UETA) and the United States Electronic Signatures in Global and National Commerce Act (ESIGN). We’re not lawyers so double-check with yours first.
Summary and Next Steps
Now that you know electronic signatures are simple, secure, convenient, and legal; what is keeping you from implementing this technology in your business? In our next article, we will review some of the available tools that you can use to implement this technology. Check out 5 Ways Technology Can Fast Track Your Business. Be sure to sign up for our newsletter to stay informed!