The capacity to enable electronic signatures is a feature that needs to be included in any contract management system that is going to be effective. The speed at which contracts can be executed, the level of security provided, and the expenses associated with conducting transactions are all significantly reduced by using digital signatures.

What is an Electronic Signature?

A technique that involves appending an encoded signature to an electronic document is referred to as an electronic signature. The Electronic Signatures in Global and National Commerce Act (E-SIGN), which was enacted by Congress in 2000, stipulates that electronic signatures have the same legal weight as handwritten signature ones. Companies are no longer restricted to using paper to carry out the execution of contracts, which can lead to significant improvements in procedure as well as cost reductions.

What are the Specific Advantages of Using a Digital Signature?

Before the legal validity of electronic signatures was established, every contract needed to be physically signed, then either mailed, faxed, or scanned before it could be stored. This method, which obviously involves a number of stages, is laborious, time-consuming, and expensive. Because of these drawbacks, it should be avoided wherever feasible in favor of electronic signatures.

1. Faster Contracting

Think about how a healthcare provider equipped with contract management software and the ability to use electronic signatures can expedite the execution of time-sensitive contracts that have a significant impact on the treatment of their patients. The elimination of needless delays in the conclusion of contracts is one of the many benefits that can emerge from the use of electronic signing.

Professionals in the healthcare industry, like professionals in nearly any other sector, already have enough things to be concerned about without having to wait for necessary paperwork to be signed by many parties after it has been sent around for signatures.

The signing of contracts can be made more streamlined and quickened in many different ways thanks to electronic signature software, including the following:

Because a digital signature is valid for the duration of the contract, it eliminates the need for additional signings.

Because each phase in the process can be validated and is easily available by all participants, negotiations can be hastened, and key issues can be marked and followed until final execution.

Even if the parties are located in different parts of the world, electronic signatures can be used to ensure that there are no delays in the execution or modification of contracts.

2. Improved Security

When compared to paper signatures, which are susceptible to forgery due to their physical nature, electronic signatures offer an additional benefit of reduced security concerns. The use of contract management software that is equipped with the capability of electronic signing enables the software to automatically identify even the most minute changes and capture more data points than paper does.

3. Reduced Transaction Costs

The automated processes of electronic signing can lessen the financial impact of human error, such as signing mistakes, which can hold down the process or cause future costly difficulties if they are originally unnoticed. This is in addition to the cost reductions that were addressed previously.

The use of document signing software can assist limit risks by delivering alerts about potentially fraudulent records or compliance issues relating to a contract. Electronic signatures guarantee that everything is in order, which saves money that would have been spent correcting issues that could have been avoided.

Also, don’t overlook the apparent cost reductions that can be made on things like paper, copies, packaging, and shipping. These expenditures might not seem like much, but over time, they’ll mount up.

The use of electronic signatures results in cost savings across the board, including in terms of labour expenses, material prices, and overall efficiency.

Implications of Digital Signature Benefits

The ability to use electronic signatures is one of the many benefits that come with using software to manage contracts. The speed at which contracts can be executed, the level of security provided, and the cost of transactions all gain significantly from the use of digital signatures in Word, PDF, Google Docs and so on.