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

How to Develop a Sound Enterprise Content Management Strategy

Enterprise Content Management (ECM) is a way to store and organize data within an organization. The data may include documents and any other content that…

Read More

How to prepare for Microsoft Server & SQL Server 2008 end of life

As you might already know, extended support for Microsoft SQL Server 2008 and SQL Server 2008 R2 is ending on July 9th. 2019. With the…

Read More
Etiquette Video Conferencing

Online Etiquette to Follow During Video Conferences

Technology has been a blessing during this challenging global health pandemic. Even though physical gatherings and meetings are not allowed and may have health repercussions,…

Read More

Have You Considered Device-as-a-Service?

This past year has brought with it many changes and many learnings. The word “transformation” has become one of the most used, or some would…

Read More

Avoid Becoming a Victim of Social Engineering

In any conversation regarding cybersecurity, the topic ultimately turns to phishing and the social engineering tactics that make this the most effective strategy for cybercriminals…

Read More