The Benefits of Electronic Signatures for SMBs

An electronic signature is a process of attaching an encoded signature to an electronic document. Electronic signatures are legally binding based on federal and provincial laws in Canada and most other countries. Organizations are no longer tied to paper to execute contracts and the resulting process improvement and cost savings can be substantial.

Before we get into the benefits, let’s just clarify what the difference is between electronic signatures and digital signatures.

The terms electronic signature and digital signature are often used interchangeably, but there is a difference between the two.

Electronic signatures cover the full range of technologies and solutions to create signatures electronically, from simple images of a digital signature file attached to an electronic document, to encryption-based signatures.

There are several methods that can be used to capture signatures electronically, such as:

  • Typing your name in a signature box
  • Signing your name on a courier’s digital device
  • Using an e-signature solution

Digital signatures are a specific type of electronic signature that has an additional authentication component for the signer. Digital signatures include a “digital certificate” that is issued only when there is validation of the identity of the signer. A type of encryption referred to as public key infrastructure is used to associate the signer with the document which provides additional certainty of the identity of the signer. In most cases, the extra steps for a digital signature are not required.

Main Benefits

Not so long ago, before the legal recognition of electronic signatures, all contracts had to be signed, shipped, faxed, or scanned, and then filed. The process was very manual and included multiple steps making it time consuming and costly.

1. Reduce time to signature

There are several ways electronic signatures can simplify and expediate the contract process, including:

  • An electronic signature is good for the life of the contract
  • Negotiations can be simplified and accelerated. Each step in the process is validated and can be accessed by all parties involved. This allows issues to be signaled and tracked until contracts are fully executed
  • Electronic signatures reduce delays in both updating and executing contracts even if multiple people in multiple geographies are involved.

2. Security

Another benefit is increased security. Paper contracts can be tampered with. Many of the applications available for contract management software with electronic signing capability can detect changes, even minor ones making tampering much more difficult.

3. Lower Costs

The automated processes of electronic signing can reduce the financial cost of human error such as signing mistakes, which can slow down the process. Electronic signing software can help mitigate these risks by providing alerts about unusual issues involved with a contract.

In addition, there are the savings on items such as paper, copying, packaging, and shipping. These costs add up.

All in all, implementing electronic signature solutions can be helpful to organizations. MicroAge can help determine what the best IT services and solutions are to help your organization achieve your business goals. Contact us today to find out how we can help you.

Get the most from your IT

As service providers to more than 300 companies, the dedicated professionals at MicroAge are second to none when it comes to managed services. By improving efficiency, cutting costs and reducing downtime, we can help you achieve your business goals!

Most commented posts

cybersecurity myths banner, mythes cybersécurité

Top 5 Cybersecurity Myths

The digital world has offered small businesses around the world with numerous options for growth and protection. However, it has also allowed myths and lies…

Read More
suspicious email suspect

5 Tips To Avoid Clicking On Suspicious Email Links

When it comes to emails, it can be easy to click on dubious links that install malware or unwittingly share your personal information. For this…

Read More
IT staffing

The Advantages of IT Resourcing Services for SMBs

Leveraging technology to achieve business goals is essential to SMBs. Technology helps businesses differentiate and compete in their respective industries and markets. It enables them…

Read More

How to Prepare for a Cybersecurity Incident

A recent report by research firm, CyberEdge Group, found that 85.7% of Canadian organizations experienced at least one cyberattack within a 12-month period in 2021….

Read More
Infrastructure informatique, IT infrastructure

5 Benefits of an Optimized IT Infrastructure

Is your current IT infrastructure helping your business thrive in its industry or creating obstacles for growth? If you’re still not using cloud technologies to…

Read More