9 Things SMBs need to know about Electronic Signatures

Today the world is digitally driven. But, unfortunately, about 80% of the business documents still process old ways, which involves printing, getting a wet-ink signature, scanning, and faxing manually.

According to report, almost 37% of SMB leaders face problems regarding agreements that have either been signed by wrong person or are not filled completely or correctly. That, where electronic signatures come to the rescue. Electronic signature well-known digital tools that offer SMBs easy solutions for various widely experienced issues.

During the early phases of electronic signature apps and software, most SMBs could not find the answers to these questions. Are e-signatures secure? Are they legal across the world? What kinds of industry-specific documents do they support?

Have a look at these nine things that SMBs need to know about electronic signature software.

Electronic signature are the same as wet signatures

If you have heard about electronic signatures, you might be wondering, is it legal or not? In reality, electronic signatures are a federally recognized form of signatures worldwide. Electronic signatures prevent the contradiction of any legal effect, validity, or enforceability for an electronically signed document.

As already mentioned, electronic signatures are adopted in over 60 countries with their own set of laws and standards that make e-signs legal in a court of law. That is because these processes are designed and implemented according to the requirements of the law.

Digital signature is different from electronic signatures

Electronic signatures are sometimes used instead of digital signatures. However, they both are different terms. Electronic signatures are equivalent to the digitized version of a handwritten signature. Electronic signatures can also be used by businesses to indicate their intent to approve or accept the contents of a document.

While digital signatures come under the category of electronic signatures that leverage algorithms to generate a digital fingerprint, this is known as a hash, which is unique to each document. Hash is then linked to the identity of the person who signs the document.

One important thing to remember is that electronic & digital signatures use to sign documents legally. Still, SMBs need to choose between two when understanding the local regulations that apply to the situation.

Electronic signature is legal for documents across every industry.

As mentioned earlier, electronic signatures are legal in the world. Most proposals, business deals, sales contracts, and many other agreements can be signed electronically, but there are exceptions to the most electronic signature laws worldwide. For example, the law excludes property transfers, wills, and other legal notices among documents bound by electronic signatures in some states. Similarly, some other states exempt agreements concerning powers of attorney, choices, and real estate contracts.

So, if you are using FilesDNA’s electronic signature, read the terms and conditions before signing the document.

Does the business process change after adopting e-sign?

In reality, any change brought to your business by an electronic signature solution is considered helpful. With the help of e-signatures, small and medium businesses can execute electronic documents using the same document management applications.

Electronic Signature are safe and secure

If you have researched e-signs before using them, then you might have come to terms like ‘algorithm’, ‘signing certificate,’ ‘hashing’, ‘public key infrastructure,’ and more. These technologies are used when a person electronically signs a document to ensure that the signers are exactly who they claim they are and that the information being relayed is secure.

So, next time you share a document electronically or get an e-sign request from others, remember that these electronic signature apps are backed with high-end algorithms and multiple levels of security to ensure that your documents are 100% safe and secured.

Electronic Signature doesn’t require technical expertise

The most significant advantage of free electronic signature software is that it is effortless to integrate into the workflow. In addition, most electronic signature apps or software like FilesDNA have built-in integration capabilities that allow SMBs to use them with their favorite applications such as Zoho, Outlook, Office 365, and more.

In this way, your employee can easily set up workflows by using their favorite business apps, so they can focus on the task rather than juggling between tabs.

Experts suggest that around 40% of SMB leaders agree that electronic signatures can rationalize the workflow, increasing employee productivity.

Additionally, while choosing an electronic software app, make sure it has features that offer an intuitive user experience so that you can have your team up and running in minutes.

Incomparable Benefits of e-sign

To any small business, it is precious if the applications enable online contract signing. FilesDNA’s e-signature software can help businesses to automate signature-dependent practices reliably and with integrity.

By reducing the reliance on paper to obtain signatures, electronic signatures allow small and medium-sized enterprises to increase their efficiency by reducing lead times while reducing the cost of organizing paper costs and improving efficiency.

Saves paper cost

According to the reports, around 45% of the printed paper at the office is thrown away. This means you can save on paper storing, postage, mailing, archiving, and paper handling with the help of electronic signatures. So, in the end, e-signs are effective in protecting the environment.

Enhances efficiency

Everyone knows that print, sign, scan, and send the document takes a lot of time in the traditional signing method. While in the case of electronic signatures, it cuts down on steps like scanning, printing, or mailing. Fewer steps mean getting your work done faster and also result in fewer mistakes.

Additionally, a faster turnaround leads to an enhanced experience for the client, thus leaving no reasons for them to abandon before the signing process.

Verifiable Signature And Signatory

Authenticating customer identity is a top priority. Therefore, every signature by the signatory has to be verified so that there is no chance of fraud. In addition, the verification helps validate the signatories signature by the documents provided by him.

Legally Recognised

The Government of India legally recognizes the electronic signature in the official gazette. In addition, it announce a method that facilitates certifying authority to offer service to citizens who have an Aadhaar ID.

Provisions relate to electronic signature are given in Information Technology Act, 2000.

Managed By Licensed CAs

The IT Act provides for the Controller of Certifying Authorities (CCA) to license and regulate the working of Certifying Authorities and ensure that none of the Act’s provisions is disregarded.

The Certifying Authorities (CAs) issue Electronic Signature Certificates (DSC) for electronic authentication of users.

Saves Time 

It has never been easy to get a signature, especially when the party whose signature is required is in a different place.

With FilesDNA, there is low consumption of time as the document is signed online instantly. The task which seemed to be tedious is now made easier by electronic signature.

It is beneficial for individuals as well as businesses, companies, banks, etc.

Wrapping up

These are some of the things the SMBs need to know about electronic signatures before getting into it. However, if you think of implementing electronic signature into your business, contact FilesDNA right away as they are considered #1 in the industry.