Its easy to see why we used ink-based signatures before the age of computers. Everything was done on paper, so scribbling squiggles was the best way we could authenticate the signator. But we have computers now, and most documents are digital. There isnt a good reason for why electronic signaturesthe electronic method for signing digital documentsare not the de facto way to approve or agree.After all, electronic signatures do everything that a wet, ink-based signature does, except better. They are far more convenient than traditional signatures because they can allow parties to examine and sign the document remotely from a computer or smartphone, no matter where they are in the world. And once all parties have signed, the results are instantno more waiting around for the mail. Best of all, most electronic signature services are affordable enough for any small business budget.What Is an Electronic Signature?In basic terms, an electronic signature is just that: a signature in electronic form. It enables signatories to approve or agree with the terms of a document, just like with wet signatures. An electronic signature is essentially a process that uses computers to authenticate the signatory and certify the integrity of the document.Digital signatures are a type of electronic signature that use complex algorithms, certificate authorities (CAs) and trust service providers (TSPs) to authenticate the signator along with the integrity of the document.Electronic Vs. Digital Signatures: The Subtle DifferenceThe difference between an electronic signature and a digital signature is subtle to anyone who is sending or signing a document. However, theyre not so subtle to auditors, compliance officers, judges and regulators. Digital signatures are a kind of electronic signature that have advanced features that keep them compliant and secure.E-signature services dont necessarily come with advanced features like document encryption and version control, but its useful for agreements and approvals where security and compliance standards are lax. Think of situations where an HR professional has to approve an employees vacation time. An electronic signature is perfect for internal use.However, when youre dealing with processes that are subject to intense security and rigorous compliance standards, then a digital signature is what you need. In basic terms, digital signatures are a subset of electronic signatures that has specialized features that lend themselves better to industries such as legal and healthcare. Digital signatures come with audit trail capabilities, encryption and other backend tools to ensure the signature is authentic. These are popular for contracts, tax documents, insurance forms and so on.Like a Regular Signature but BetterElectronic signatures are superior to their ink-based ancestors. Theyre instant, portable, legally binding, and they reduce our harm to the environment. Best of all, you still get to apply that very neat signature that youve been practicing since you were 6 to every document.Instant, Convenient, FoolproofElectronic signatures accelerate approvals and agreements by eliminating idle periods from the process. With electronic signatures, you dont have to wait for the mail or get in your car to drop off documents. The moment you apply your electronic signature to a document is the moment you can move to the next step.Electronic signatures also make signing documents much easier. Since electronic signature solutions are so portable, you could sign or request signatures from virtually anywhere on the globe, using the device you like most. You dont have to print, sign, scan, then resubmit your document, and you dont have to own a fax machine for the sole purpose of sending and receiving signed documents.And since many electronic signature solutions wont let you submit a document until each signature field is filled in, you dont have to worry about little mistakes turning into massive problems.Legally BindingElectronic signatures are as legally binding as their ink-based counterparts. In 2000, the U.S. passed the E-Sign Act, which legally defines what an electronic signature is, and endows those electronic signatures with all the same legal authority as a wet signature.Environmentally FriendlyHaving to print, scan and fax just to make an electronic signature isnt only time-consuming and annoying. Its also bad for the environment. Every appliance you purchase makes your overall carbon footprint larger. The more devices you can take out of the equation makes your workflow better for the planet. The same goes for all the trees that need to be cut down for the paper you are printing for your hardcopy documents.Using Electronic SignaturesThere is no one way to make an electronic signature. The specifics depend on which electronic signature method you are using. But in general, they mostly work the same. When youre seeking approval or agreement from someone, you share your document, define the zones that require a signature and send the document to the other party. Its even easier when youre the signatoryou simply open the document, sign on all required fields then submit.Electronic Signatures in Microsoft WordSometimes, you might want to add an electronic signature to a Word document. This is fine for inconsequential usage of your signature, like in a cover letter or a memo. And doing this is quite easy. You can sign a blank page of paper and run it through your scanner or open up Microsoft Paint and draw your signature electronically. From there, its a matter of saving your image, pasting it into Word and sizing it appropriately. The process works in a very similar way if you are using Google Docs, too.But you dont want to use Word files as the medium for signing most documents. Anyone can change the rest of the contents of that document before adding their signature. If youve got a contract or some tax documents, for example, you should convert that Word document to PDF, then use your electronic signature solution of choice to sign or request a signature.Frequently Asked Questions (FAQs)Are e-signatures legally binding outside of the U.S.?Electronic signatures are legally binding in most countries outside of the U.S., including Canada, China, Russia, Japan and dozens more. While there are subtle nuances between each countrys laws, they are generally the same. You should consult legal experts before using electronic signatures internationally.Are electronic signatures secure?Electronic signatures are secure, and arguably more secure than wet signatures. Anyone can learn how to copy someone else’s signature with enough time and practice. Furthermore, its difficult for the average human to verify whether or not a signature was made by the signator or not. Electronic signature software, however, is secured by sophisticated cryptographic algorithms to prevent tampering and maintains an audit trail to settle disputes.Is electronic signature tech right for me?If you find yourself signing a document or requesting signatures several times a day, then you should consider an electronic signature. Not only is it faster and easier, but many electronic signature apps provide you with templates to streamline document processes, ways to keep track of all your documents and tools to ensure that each field of a document is signed.