Do you know why businesses need online electronic signatures?

Why Businesses Need Online Electronic Signature Management

If your business requires contracts and agreements in order to get paid, there may be no more horrifying fear than the loss of your contracts. Imagine, if your warehouse burns down with all of your forms and backups inside or a hurricane or tornado hits, scattering your files, then soaking and ruining them. A leaky pipe in a storage facility causes multiple filing cabinets worth of documents to mold and ruin. There are endless scenarios where paper files could be lost and cost your company a fortune in collectable sales.

Scenarios like this are much less common than they once were because most companies now use computerized backups. Computer backups of your files and signatures are a major improvement from the “I hope nothing bad happens” system of years past, but it is far from perfect. 

Modern, cloud-based digital signature management tools are better than scanning and backing up paper files in every way. Here is a definitive list of the benefits of online electronic signature management.

1. Loss

None of the scenarios for losing files listed at the top are far-fetched. If it is reasonable to assume that a fire could take out your paper files, isn’t it just as easy to see that happening with the computers the files are being backed up to? This can be helped by storing your hard copy files and the digital backups separately, but there are still scenarios where this might not be enough. In addition, there are many additional ways locally stored computerized files can be lost. 

If your hard drive fails, either through wear and tear, or accidental erasure, all of your backups will be lost. In addition, it is not uncommon for companies to discard old computers when making upgrades. It is completely possible for an employment agreement or older long term sales contract to be discarded along with the computer. 

By using a cloud-based online system for storing your signatures, you are protected from this type of loss. Cloud servers have redundancy built into them, typically by storing multiple copies of data on opposite coasts or other continents. It is physically impossible for a computer failure to cause the loss of your cloud-based files. That is the whole point of the cloud. 

2. Legality

There is little debate that original hard copy documents will be the preferred option in contract disputes. A paper contract signed by both parties, ideally with witnesses, is hard to debate. Unfortunately, there are many complications to such a contract ever making it to court in the event of a dispute. 

If your backup system is to scan and email documents, there are a few dangers. For one, it is fairly easy to change a scanned document, either with editing software or by making a change and scanning it again, replacing the original scan with the copy. This doesn’t mean that a scanned document won’t have legal heft, but a copy will never have as much weight as an original. That is why typically, when you sign important documents, all parties will sign multiple copies rather than making copies of a single signed form for everyone involved. 

Electronic signing eliminates any risk of debate about the accuracy of the agreement. Because eSigned documents have the exact date and time data stored along with your consent to the agreement, there is a clear trail of who agreed to what and when they agreed to it. Although eSigning might seem too new to be trustworthy, the technology has been viewed as legally binding in the courts for over twenty years. 

3. Space

Unless your business is in empty airplane hangars (and probably not even then), you have a limited amount of space to store old files. Paper agreements can be very lengthy, and storing a lot of them for a long time guarantees you will eventually run out of space if you stay in business long enough. 

Traditional methods of filing storage have guidelines for how long to store certain types of files, but even then, managing the timeline to schedule the destruction of those files is an extra burden. Add in the time spent organizing and maintaining those paper files and the effort and cost of securely destroying the files when they are no longer legally necessary, and you may have added the equivalent of a full-time employee (or more) to your employee pool. That is a lot of labor for something that you should not have to do. 

By utilizing electronic document creation and signing, you eliminate the need for all of that paper storage. By eliminating the paper, you eliminate the monumental task of maintaining that paperwork. Along with huge savings on office supplies, this frees up time and resources in your office that could be used for more profitable functions. You also get to say you are making trackable improvements to your carbon footprint while saving yourself money!

4. Convenience

Traditional contract signing is a strangely time-consuming process. First, you have to schedule an hour or so that both parties can carve out of their days which may require advance planning for some folks. One of you probably has to drive to meet the other, taking up even more of your day. You sit in front of the other person and any witnesses you may have while you read over a potentially lengthy document (you have to reread when signing to make sure it wasn’t changed in the meantime). 

After you do all that, you sign your name in a couple of places, watch them sign, then head out.

Someone then has to scan those documents and file the hard copies. That is a lot of time out of several people’s day to do something that only took a few minutes. 

Compare the length of time involved for that with electronic signatures. With a cloud-based eSigning service, you can create your contract and email it over to be signed. You are then able to go about your day and complete other tasks, rather than watching someone read over the contract. The signer is able to read the contract at their leisure, without the pressure of feeling someone stare at them while they read, and with the ability to take as long as they need. The signer can easily sign documents using their phones, be it android or an iPhone/iPad.

The signer can notify the sender when they consent to the signature, and the document is ready to file. A few clicks and the signed document is complete. This document is now available from anywhere. No one has to keep up with a copy. If either party needs to review the contract at any point, it is available from any device. 

Compare that to having to go to a central location and look for a paper file when you need to locate an original contract, and you can see the convenience you gain. 

5. Savings

While it may seem odd to talk about savings when discussing adding a service, the actual cost savings are obvious when you consider all the other reasons already mentioned. By switching to a cloud-based electronic signature manager, you cut your expenses in every area of contract maintenance. 

If you are doubtful, look at your business and consider how many tasks your team could complete in the time they are sitting with folks signing contracts. In most cases, that alone is enough to offset the minimal costs associated with an eSignature service. If your company is in sales, for example, how many extra sales could one salesperson make if they were given the time they spent last month sitting with clients while they signed contracts? 

This doesn’t even account for the productivity boost for your administrative support staff in filing and data entry. In addition to the labor savings, you are using substantially fewer office supplies like paper, ink, and file folders. Your need for printers goes down dramatically, and the power and usage contracts associated with large office equipment are reduced as well. 

You will need less storage space, which translates to either more productive space or the ability to work from a smaller space. There is less risk of losing data, so you are better able to collect on all of your open contracts. 

Let us take tax forms and accounting documents as an example. These are important documents that take time to get processed, but shifting to electronic signatures can save time, cost, and resources.

Summary

Compare all of those savings with the cost of a solution like Revv. Even if your company has 50 employees needing eSignature service, Revv will cost less than $50 a month. If you run a smaller company, it will cost even less. Compared to the overall savings, and Revv pays for itself. 

Sources:

https://law.stackexchange.com/questions/1994/do-scans-of-signed-documents-have-the-same-legal-power-as-the-original-document

https://www.investopedia.com/terms/d/data-loss.asp

https://www.milner.com/resources/blog/post/articles/2019/10/09/the-true-cost-of-paper-storage

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Diksha

Diksha

Diksha is a Product Expert at Revv. She works with the creative marketing team to come up with new and exciting content for you. When not working, she can be found engrossed in the world of fiction novels while foot-tapping to Coldplay's tunes.

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