An electronic signature isn’t a passing fancy or a way to cheat the system, as some might imagine. They’re completely legally recognized ways to sign your name on digital documents. It’s the 21st century’s answer to the necessity to leave a personal, identifiable mark on a document at a time when much of the documentation has gone digital.
Legally Solid
In the past, sealing a deal needed a pen and a piece of paper. Now, an electronic signature is just as legitimate and valuable. Countries all over the world have been updating their rule books to make sure that when you sign something digitally, it’s as binding as the old-school pen-to-paper method.
This means that if you’re signing off on a new house, agreeing to a job offer, or finalizing a sales contract, digitally doing it has no barriers, legally speaking. It’s recognized by courts and governments worldwide. When you click to sign, it’s binding, so carefully read what you’re signing.
However, keep in mind that there are no one-size-fits-all electronic signatures. Some digital signatures are as straightforward as typing your name at the end of an email. Others are encrypted with digital keys that only the sender and receiver can unlock. Yet others look like regular signatures, scribbles included, and sometimes use specialized signature devices.
Those who need just a simple sign-off might accept a typed name or a scanned image of your signature. However, for more valuable documents that must be secure and hard to forge, encrypted digital signatures come into play. They use Public Key Infrastructure (PKI) to check that the signature is attached to one person only.
Why You’d Want to Go Digital
Switching to electronic signatures is smart if you wish to expand beyond a very local service area. Here’s why:
Quick and Easy
You can sign significant documents from the comfort of your couch, a home office desk, or from the cozy confines of your bed. The electronic signature makes it no longer necessary to go to the post office or courier service to send a document to a recipient and receive it back. This makes any formal exchange of documents easier, like signing a lease, approving a project proposal, finalizing a sales contract, or accepting a work contract.
Saves Money
It might seem strange to see any cost in something as simple as signing a document, but it is there. The cost of paper, ink, and postage add up. Switching to an electronic signature is one less burden for the wallet and the planet. No more printing dozens of pages for a single signature, no more ink cartridges, and no trips to ship documents (and waiting in lines to do so). This shift saves trees, which makes it more eco-friendly and cuts down on expenses. Every document signed digitally saves money, and one less piece of paper is used.
Tight Security
Digitally signing a document may not seem particularly secure on the surface. It might feel like anyone can forge a signature, with the other party being none the wiser. But this isn’t exactly the case.
With an electronic signature, your signature is locked beyond encryption, safe from prying eyes. Only the intended recipient has the key to unlock it, thanks to encryption technologies that get signatures exactly where they need to—and nowhere else. There may still be valid concerns regarding the potential for forgery and identity theft, but despite how it may appear, these risks aren’t much higher than they’d be for regular signatures.
Switching to an Electronic Signature
Here is what you must do to transition to digital signatures within your company.
Pick the Provider
Each electronic signature platform has strengths and weaknesses. Some platforms are more user-friendly and perfect for beginners who want to get things done without a manual. Others may offer more features and top-tier security for particularly sensitive documents.
Think about what you need, if it’s something straightforward, or if you need all the bells and whistles of advanced encryption and extra layers of security. Maybe you want a platform that integrates with other tools you’re already using, like email or project management software. Take the time to explore your options, try out a few (most offer free trials), and see which one feels right.
Know the Rules
Using an electronic signature follows very particular laws and regulations. However, these rules may vary from state to state and country to country. Some areas have fairly relaxed laws that have embraced digital signatures with open arms. Others might have more rigorous requirements and limitations on what’s acceptable as legally binding and what isn’t.
Before you embrace the admittedly appealing idea of signing everything digitally, take a moment to brush up on the local laws, both local and broader. That’s especially true if you deal with a global client or partner base or wish to expand.
In the U.S., for example, the ESIGN (E-Sign) Act and UETA (Uniform Electronic Transactions Act) set the stage for electronic signatures. In the EU, it’s the eIDAS (electronic Identification, Authentication and Trust Services) that dictates how the signatures work.
Getting familiar with these laws means that when you sign digitally, you will know that it’s as binding as if you’d done it with ink on paper. It also means that you can defend your rights if anything goes amiss and that you can act on the terms of a contract. Keep in mind that an improperly signed digital document will not have adequate legal protections, so do it correctly to stay on the good side of the law.
Make an Electronic Signature Solution Your Company’s Next Step
The future looks bright thanks to tech like blockchain and AI. Advancements like this are set to make an electronic signature more secure and identifiable while making it even easier to sign those vital documents. KDI Office Technology is the service to contact if you want to get started. If your company is in Philadelphia, eastern Pennsylvania, New Jersey, or Delaware, reach out to us. Say goodbye to paper clutter and hello to efficiency. Take a look at our contact page and set up an appointment.