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How Business Processes can Benefit from Electronic Signatures

electronic signature

E-signature benefits small businesses

What if you could bypass the tedious process of getting a contract signed in-person and get started on the work today? Businesses have a lot to gain from both an efficiency and productivity standpoint with electronic signatures (e-signatures) such as those offered by e-SignLive’s electronic signature solution. Signatures can be obtained easily and quickly from all key players within an organization, and it helps companies remain in compliance with the rules and regulations governing their industry.

E-signatures can be used for countless types of documents, from executive management, human resource to sales documents. Since both federal and state law accept that electronic signatures hold the same credence as handwritten signatures, companies have much to gain by adopting the new technology.

What exactly constitutes an e-signature?

An e-signature can consist of an audio file of the signer ‘s voice, a graphic representation of a person ‘s handwriting in a JPEG file or a procedure unique to the signer. The U.S. Electronic Signatures in Global and National Commerce Act (ESIGN) defines an electronic signature as “an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a person with the intent to sign a record”. So long as the highest security and integrity are maintained, there are numerous benefits to electronic signatures.

Benefits of an e-signature

1. Reduces Overall Costs. Annually, there are nearly 30 billion documents copied or printed in the United States. Experts estimate that each signature, after copying, scanning, routing, archiving and locating lost documents, costs $6.50 each. Each employee signs approximately 500 documents per year. The total cost per employee becomes $3,250. A large enterprise of 100,000 employees or more could save millions with electronic signatures.

2. Reduces Costs Associated with Printing. Expenses associated with printing can become exorbitant. Paper, ink and wear-and-tear costs can all be reduced with electronic signatures. Many green companies are using electronic signatures in an effort to save the environment. Using less paper and ink will both help with these efforts.

3. Reduces Costs Associated with Delivery. Delivery costs are reduced when documents can be circulated electronically. Companies also save money on physical labor required to deliver documents in-house for signatures. When companies save money, the savings can be re-invested into the products or services provided.

4. Tracking Improves Business Efficiency. Business processes are improved when documents can be tracked at every stage of the signing process. At every moment, the originating party will know where the document is located and how long each individual is taking to read and sign the document. Productivity is improved when processes are streamlined and efficient.

5. Saves Time. Business save time by circulating documents through an organization electronically. No physical person is required for delivery. Since it is easier to send an electronic document than to mail, this saves busy executives ‘ time.

6. Less Likely to Be Lost. Electronic documents have fewer opportunities to be lost or viewed by unauthorized eyes if encrypted during delivery. A paper document may be viewed by the courier or be lost during the circulation process. The paper-signing process is inefficient and has a greater propensity for disaster.

7. Easy to Store and Record. Every signed document can be stored for future use. If a dispute arises or compliance needs to be verified, it can be retrieved electronically. Electronic storage saves physical space.

8. Tamper-Evident Seal. When a document is signed electronically, the document cannot be altered without it being evident to the originating party. The document will become invalid if the content is altered after the document is signed.

Driving Business with e-signatures

Many companies are migrating to e-signatures to save time, money and the environment. The associated software is well worth the initial expenditure when compared to the future cost savings. Moreover, providers typically offer their services on a pay-per-use basis. By adopting an e-signature solution- your company is not only kick starting business plans into action, it ‘s helping reduce waste and the amount of material that needs to be collected, transported and processed.

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SMB Authors
SMB Authors 1040 posts

This article is one of the excellent contributions from small business owners, decision makers and professionals.

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