The accounting department is no stranger to large volumes of documents, from invoices and pay slips to audits and returns. As the financial industry shifts towards digitalization, accountants must adapt and adopt new methods for signing and managing documents.
Electronic signature software for accountants ensures that all digitally transmitted documents remain accurate, secure, and faithfully executed.
This blog will discuss the benefits of using eSignature for accounting and how best to implement it in your business processes.
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How Can Accountants Use eSignatures: Use Cases
An accountant’s eSignature can be used in multiple ways. In fact, almost any situation where a traditional signature is used can be replaced with an electronic one. Here are some common use cases:
Client communications
Sending important documents (like reports or compliance notices) for electronic signature can ensure clients receive and acknowledge these communications promptly. Likewise, you can streamline your client onboarding process by sending engagement letters digitally and requesting electronic signatures.
As a bonus, contract management software like Fill will alert you when an engagement contract is due for renewal.
Tax returns and forms
Using electronic signatures to sign and submit various tax documents, such as the IRS Form 8879, can speed up the filing process and ensure timely compliance. It can also ensure that forms contain accurate information and reduce the risks of errors.
eSignatures can also simplify obtaining consent for accountants to act on behalf of their clients with tax authorities.
Audit confirmation requests
During audits, you can send confirmation requests to third parties (like banks or customers) to verify account balances or transactions. These requests can be signed electronically, facilitating quicker responses.
Furthermore, electronic signatures come with secure audit trails and timestamps, helping you comply with record retention policies.
Invoicing and payment approvals
eSignatures can confirm receipt and acceptance of invoice terms, facilitating faster approvals and payouts. You can also use it for various internal documents that require signatures, such as budgets, expense reports, and policy changes.
Electronic signatures can create a more efficient workflow that enhances productivity and expedites processes.
Benefits of eSignature for Accountants
Electronic signature software for accounting is the perfect solution to streamline operations and reduce the risk of errors or fraud. Here are some reasons eSignatures can be advantageous over traditional paper-based signatures.
Faster completion of documents
eSignatures can expedite the signing process, allowing accountants to quickly sign and send out documents without waiting for physical copies to be returned. This ensures that payments and forms are processed within the required turnaround time, making it easier for clients to stay ahead of their financial obligations.
Increased security
Digital signatures are secure and can be authenticated to verify the signer’s identity. This adds an extra layer of security, reducing the risk of personal identifying information (PII) being stolen or viewed by outside parties without permission.
Lower costs
eSignatures can result in significant cost savings by eliminating the need for physical supplies and postage. It also reduces paperwork, resulting in decreased overhead expenses. It is also a more environmentally friendly option, as it reduces paper and ink waste.
Convenience
Electronic signatures are incredibly convenient, as they can be completed and sent anytime, anywhere. This makes them ideal for accountants who travel frequently or have clients in different parts of the world. Using eSignature technology is one of the many ways accountants and tax professionals can quickly provide efficient business transactions with clients.
Compliance with regulations
Compliance with laws, regulations, and policies is integral to any financial process. This requires maintaining secure document control procedures. eSignatures comply with federal, state, and international laws like the E-sign Act and eIDAS. They provide a safe way to sign documents while adhering to the industry’s strict regulatory requirements.
Choosing the Right eSignature Solution For Accountants
The perfect accountant eSignature software should have the following key components:
- Security and encryption: Look for software with the highest level of encryption and security standards to protect your documents from unauthorized access. Consider solutions that offer password-protected access and comprehensive audit trails.
- Industry and regulatory compliance: Ensure the eSignature app complies with IRS eSignature standards and other electronic signature regulations, such as the ESign Act and UETA. If dealing with international clients, ensure the solution supports global standards like eIDAS.
- Integration with accounting software: Check that the software integrates seamlessly with your accounting and tax preparation software. It’s also best if it works with cloud storage platforms for better document management and accessibility.
- Customizable templates: It’s best to choose a solution that lets you create and save reusable templates for your most common documents. You should also consider a platform with strong document management features to keep files organized.
- Pricing and scalability: Check the pricing model and find a solution that fits your budget. Consider your firm’s future growth and choose a platform to accommodate the increasing number of clients and signatures.
How Fill Can Help Sign Accounting Documents Securely
Fill is a secure and compliant eSignature provider with features accountants can trust. Our cloud-based application provides an intuitive user experience that lets you quickly and easily send documents for eSignatures. You can rest assured that your data is secure and compliant with relevant regulations and laws.
With a Fill Pro account, you get access to thousands of templates you can customize with your branding. You can also create and publish live forms to facilitate faster and more accurate data collection.
Moreover, you can create conditional fields and workflow automation to streamline your systems further. With Fill’s robust API, you can integrate eSigning with any existing software, including proprietary and enterprise systems.
Start using eSignatures for accounting today and see the benefits it can bring your business.
