You can be on Entrepreneur’s cover!

5 Reasons You Should Make the Switch to Electronic Signature Technology Giving up paper and ink contracts can help make your business run more efficiently.

By Mikal E. Belicove

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

5 Reasons You Should Make the Switch to Electronic Signature Technology

If you still haven't made the switch to electronic signatures, you're missing out. The electronic signature process enables businesses of all sizes to simplify the task of obtaining signatures and expedites the contract signing process, all in a seamless and efficient way.

DocuSign, a San Francisco-based company that helps businesses collect and manage digital signatures for important documents, announced this week that it has raised $55.7 million in the latest round of funding, bringing the total amount raised to $122 million.

This significant funding signals the importance today's businesses are placing on e-signature. Since its founding in 2003, DocuSign has gathered more than 20 million users who have signed more than 150 million documents.

But if you're still unsure about moving the execution and storage of your contracts and agreements into the digital age, consider the following:

1. Is e-signature legal? Yes. Properly managed electronic signatures were given legal equivalence to "wet ink" signatures with the passage of the federal ESIGN Act signed by President Bill Clinton in 2000.

2. Is e-signature safe and secure? Electronically signed and sealed documents are more secure than their paper counterparts because they tend to contain more information about who signed them, and they can be protected from unauthorized tampering. This isn't possible with paper. Most ID theft happens to paper transactions because they are so easily lost, stolen or forged. Electronic records are encrypted and stored securely online.

Related: A Reformed Hoarder's Guide to Records Storage

3. Will e-signature work in my current business environment? Many e-signature transaction platforms integrate with the business tools you already use, including Microsoft Word, Google Docs, Dropbox, Salesforce and more. When looking for an e-signature provider, ask for a list of compatible products and platforms. Every business should be able to use its existing applications and documents instead of printing, faxing, scanning or overnight mailing.

Related: Five Tools for a Smarter Business

4. Why switch to e-signature if what I'm doing works? Many businesses are realizing that it can take a week or more to get a document signed and returned, and that in many cases it needs to be re-done because there were mistakes or missed signatures. Such delays in closing a deal with paper are no longer acceptable when a competitor can do it in minutes.

Related: How Can I Stand Out from the Competition?

5. Is e-signature affordable? While the cost of an overnight express envelope varies depending on carrier and distance, the real cost isn't in dollars. The real cost is in the lost time, manual processing errors, re-keying of data, and printing, signing, scanning and emailing of agreements all without the benefit of auto notification upon receipt.

Mikal E. Belicove is a market positioning, social media, and management consultant specializing in website usability and business blogging. His latest book, The Complete Idiot’s Guide to Facebook, is now available at bookstores. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

'Wildly Inappropriate': Woman Says She Was Denied a Job Because She Didn't Wear Makeup During the Interview

Melissa Weaver was applying for a VP of HR job at a tech company via video.

Business News

Uber Is Fixing One of the Biggest Complaints Families and Parents Have With the Company

Uber Car Seat is now available in New York and Los Angeles.

Business News

Founders of Companies Worth Over a Billion Dollars Have These Simple Things in Common

A new study found three traits that stood out in unicorn founders.

Business News

Dollar Tree Is Raising Its Price Cap to $7: 'The Macro Environment Has Gotten in Our Way'

The discount chain's cap was most recently raised to $5 last June.

Business News

Robinhood Is Offering a Credit Card for the First Time — and It's Available in 10-Karat Gold

Robinhood wants to take a bite out of the Apple Card with its new Gold Card, which has up to 5% cash back with no fees. Here's what to know.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.