12 Reasons Your Accounting Firm Should Use eSignature in 2023
Accounting firms that use eSignature technology can reap multiple benefits. For example, introducing this technology can improve your accounting firm’s productivity levels, increase your accuracy and compliance, and enhance your client experiences. By automating document signing and management processes, eSignature technology can help accounting firms save time and money, reduce errors and omissions, and provide a more secure and efficient way to manage client documents. Additionally, by offering clients the convenience of digital document signing, accounting firms can improve client satisfaction and loyalty.
What is eSignature Technology?
Electronic signature, or eSignature for short, is a type of technology that enables individuals to sign digital documents and transactions electronically. Electronic signatures eliminate the need for physical signatures. They can be used to sign a wide range of accounting documents such as client engagement letters, invoices, tax returns, and financial statements.
Can a digital signature be legally binding? This is a common question and a reasonable one to ask. The good news is that eSignatures are 100% legally binding.
When you use Mango practice management software, all electronic signatures are legally binding because of our comprehensive authentication process. We follow the legal guidelines defined by the Uniform Electronic Transactions Act (“UETA”) and the Electronic Signature in Global and National Commerce Act (“ESIGN”). These two acts provide clarity and rules for ensuring the validity of digitally signed documents.
Accordingly, we confirm the signer’s identity with Knowledge-Based Authentication (KBA). Mango does this by using a digital marker, such as an IP address, operating system and browser information, geographic coordinates, and time and date stamps. The electronic signature you capture through our software is verifiable and has evidentiary documentation. By taking these extra steps to validate the signer’s identity, Mango helps you prevent fraud and tampering.
eSignature technology typically includes features such as encryption, multi-factor authentication, and digital signature certificates to ensure the security and integrity of electronic signatures. These features make eSignature technology a reliable and secure alternative to physical signatures.
After all, why go through the old-school way of printing documents, submitting them to clients, waiting for them to be signed, and scanning them into your record-keeping software when you could simply use accounting document management software with eSignature enabled?
eSignature technology provides accounting firms with a convenient and efficient way to sign and manage digital documents. Additionally, eSignature technology can be integrated with your accounting software and accounting workflow. When using eSignature-enabled software, you can streamline and automate document processes within your accounting firm.
What are the Benefits of eSignature Technology?
Why should you implement eSignature technology in your accounting firm? Here are the benefits to consider:
1. Reduced administrative time
By using eSignature technology, your accounting firm can reduce the amount of time and resources you currently spend on manually preparing documents for client signage. This includes printing, mailing, faxing, and filing the document. Implementing eSignatures can lead to a significant reduction in administrative costs.
2. Enhanced security
eSignature technology provides advanced security features such as tamper-evident document trails, encryption, and multi-factor authentication. These enhanced security features can help you reduce the risk of fraud in your signed documents.
3. Faster processing time
Using eSignature technology can definitely speed up document processing time. It can also improve turnaround time for client engagements. This small improvement to your processes can help your accounting firm gain a competitive advantage in the market.
4. Better compliance
Collecting eSignatures can ensure that your accounting firm is compliant with regulatory requirements. eSignatures do this by creating a fully digital copy of signed documents. This aids document retention, audit trails, and traceability.
5. Improved client experience
eSignature technology provides clients with convenient and flexible document signing options. Clients do not have to wait for a physical copy of a document to be mailed to them. Instead, they can sign a document anywhere and at any time. By using eSignatures, you can help improve the client experience immediately.
6. Reduced environmental impact
eSignature technology can help reduce your firm’s environmental impact. When you collect signatures digitally, you eliminate the need for physical paper-based documents. eSignatures promote sustainability and reduce waste.
7. Integration with accounting software
When you use Mango Practice Management software, the eSignature feature comes with it. This means there’s no need to buy a separate solution.
8. Customizable workflows
eSignature technology can be built into your workflow process. In fact, you can create your own template to ensure that nothing falls through the cracks. Customized templates and workflows can help streamline and standardize the document preparation process, leading to improved efficiency and accuracy.
9. Secure document sharing
eSignature technology makes it easy for clients, team members, and other stakeholders to share documents with each other. This includes documents that are freshly signed or documents in need of being signed.
10. Lower costs
While there may be an initial financial investment in obtaining eSignature software, you may find that using such technology will lower your overall costs. Specifically, implementing eSignatures into your accounting processes can reduce printing, paper, and mailing costs, leading to long-term cost savings.
11. Real-time updates
eSignature technology provides real-time updates and notifications when a document has been sent or signed. You can also set up automated reminders when a document needs to be signed. This can help accounting firms better manage and track document processes.
12. Easy to use interface
eSignature technology is easy to use, even for beginners. This leads to easy adoption, even from your most difficult and not-tech-savvy clients. Ease of use can translate to improved satisfaction for your accounting clients.
How to Use eSignature in Your Accounting Firm
Let’s discuss how you can use eSignature technology in your accounting firm.Here are tips on how to use eSignature in your accounting firm Click To Tweet
Sign engagement letters
Accounting firms can use eSignature technology to collect signatures and maintain the proper documentation of engagement letters from clients. eSignatures can include acceptance letters, change of scope letters, and termination letters. eSignature technology can streamline the process of sending and receiving engagement letters, while also providing an auditable trail of who signed and when.
File tax returns
eSignature technology can be used to sign and file tax returns and other government forms, such as Form 1099, Form 1040, and Form W-2. Using eSignature technology can help accounting firms ensure that all necessary signatures are obtained, while also providing a secure and efficient way to submit forms electronically.
Sign financial statements
Accounting firms can use eSignature technology to sign and manage financial statements, including balance sheets, income statements, and cash flow statements. Using eSignature technology can help ensure that all necessary signatures are obtained in a timely manner, while also providing an auditable trail of who signed and when.
eSignature technology can be used to sign and manage invoices, including billing and payment authorizations. Using eSignature technology can help accounting firms streamline their invoicing process, while also providing a secure and efficient way to authorize payments.
In addition to invoices, eSignature technology can be used to sign and manage compliance and regulatory documents. This includes Form ADV, Form CRS, and Form PF. Using eSignature technology can help accounting firms ensure that all necessary signatures are obtained.
Accounting firms can use eSignature technology to sign and manage contracts and agreements with clients, vendors, and other stakeholders. When you use eSignature technology, you can streamline the process of sending and receiving contracts and agreements in your accounting firm. It’s also easier to determine who signed the document and when.
Manage employee onboarding
eSignatures aren’t just for clients. eSignature technology can be used to welcome new employees onboard. Use it to prepare general HR paperwork that may include offer letters, employment agreements, and benefits enrollment forms.
Accounting firms can use eSignature technology to sign and manage any non-disclosure agreements (NDAs) you may enforce with clients, vendors, and other stakeholders. Using eSignature technology paired with an all-in-one accounting firm management software can ensure that all necessary signatures are obtained, while also providing a secure and efficient way to store and manage NDAs.
eSignature technology provides numerous benefits for accounting firms looking to streamline processes and improve client satisfaction. By using eSignatures, accounting firms can reduce the time and costs associated with paper-based processes, increase security and compliance, improve accuracy and efficiency, and enhance client experiences through faster and more convenient document signing and management.
Would you like to see eSignature technology in action? Click here to schedule your free demo of Mango Practice.
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