Signatures have been traditionally used to complete transactions and make agreements official. As digital transformation takes hold, many businesses are opting to store and share documentation in the cloud. As such, the basis of what constitutes an official signature has broadened.
An electronic signature, or e-signature, enables you to agree to the content and terms of a digital document. And it’s as legally binding as its handwritten counterpart. In essence, it’s the process of authenticating the signatory and certifying the integrity of a document without having to pick up pen and paper.
That said, there’s a subtle difference between electronic and digital signatures. An e-signature is a generic term for any signature submitted electronically – be it a symbol, image, or process attached to a message that certifies digital identities.
By contrast, a digital signature is a secure, tamper-evident subset of electronic signatures that’s used to encrypt documents. Think of it as an electronic fingerprint that encrypts and identifies the signatory when the security of a document is paramount. Digital signatures are great for contracts, tax documents, compliance certificates, and insurance forms.
What Are the Benefits of E-Signatures?
An electronic signature is like a regular signature, but better. It allows for the full digitalization of business processes, bringing with it a myriad of benefits:
- Enhance the security of business processes – Electronic signatures are as legally binding as their ink-based counterparts, with the added advantage of being tamper-proof. E-signatures come with an electronic record that serves as proof of the transactions and can be used as an audit trail. For this reason, it’s possible to verify who signed a document and when they did so. The audit trail also includes details of whether the document was opened or viewed.
- Instant and convenient – Electronic signatures allow business leaders to sign agreements remotely, which accelerates the contract approval process. E-signing is also significantly easier as there’s no need for printing, faxing, or shipping documents. You can sign or request signatures from virtually anywhere on the globe.
- Environmentally friendly – Printing, especially in excess, can be detrimental to the environment. When you print less, you contribute to responsible forest management and reduce your organization’s carbon footprint. And it isn’t just about the paper. Print cartridges can release harmful chemicals that pollute the soil and water when disposed of in landfills.
Using Electronic Signatures
Electronic signing is fast, green, secure, extremely convenient, and arguably more secure than wet signatures while being just as legally binding. While you can sign a document in Microsoft Word or PDF format, you may want to invest in e-signature technology if you find yourself signing or requesting signatures several times in a day.
About NATIONAL
Committed to their customers since 1927, NATIONAL offers a range of Managed Services including IT Support and Augmentation, Cybersecurity, UCaaS, Managed Print, Document Management as well as VoIP/Telephony, Cloud Services, Printers, Copiers, MFPs, Product Print Equipment and SmartBoards.
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