What Is an Electronic Signature?
An electronic signature (e-signature) is a legally recognised digital alternative to handwritten signatures, allowing businesses and individuals in Australia to sign documents online securely and efficiently. Governed by the Electronic Transactions Act 1999 (ETA), e-signatures simplify agreements, reduce paperwork, and help businesses speed up contract approvals while maintaining compliance with Australian regulations.
Importance of Electronic Signatures in Business
With remote work and digital contracts becoming the norm, electronic signatures help businesses:
- Reduce signing time by compared to paper-based processes.
- Cut administrative costs (printing, mailing, and manual processing).
- Enhance security with encryption, audit trails, and multi-factor authentication.
What Are Key Benefits of Using an Electronic Signature?
Businesses worldwide are switching to electronic signatures for faster, more efficient document management. Here’s why:
Faster Document Processing
- Sign contracts instantly—no need for printing, scanning, or mailing.
- Boost sales & approvals with real-time SMS signing.
- Reduce contract delays and ensure deals close quickly.
Cost Savings & Efficiency
- Save on paper, ink, postage, and admin costs.
- FLK it over has found that SMS signatures are signed 56% quicker than ones requested via email.
- Avoid costly errors from missing or incomplete signatures.
Enhanced Security & Compliance
- Two-factor authentication (2FA) for secure access.
- Tamper-proof audit trails track every signature event.
- Meets legal compliance standards in Australia.
What Are The 3 Types of Electronic Signatures?
Type
Security Level
Use Cases
Basic Electronic Signatures (BES)
- Includes typed names, scanned signatures, and checkbox agreements.
- Easy to use, but offers limited verification security.
Advanced Electronic Signatures (AES)
- Includes SMS authentication and encryption to prevent tampering.
- Ideal for finance, HR, and legal agreements.
Qualified Electronic Signatures (QES)
- The most secure e-signature type, requiring a third-party certification.
- Used for government documents, real estate, and high-value transactions.
How Do You Implement Electronic Signatures in Your Business?
Transitioning to electronic signatures is easy with the right approach.
1) Choosing the Right Electronic Signature Solution
- Look for compliance with the Australian ETA.
- Ensure the tool offers audit trails, encryption, and mobile signing.
- FLK it over offers unlimited SMS signing, templates, and integrations.
2) Integrating Electronic Signatures into Workflows
- Automate HR forms, sales contracts, and invoices.
- Use API integrations for seamless CRM and software compatibility.
- Implement real-time SMS signing for instant approvals.
3) Training Employees on Secure E-Signature Use
- Educate teams on legal compliance and security best practices.
- Provide training materials and live demos.
- Offer technical support for seamless adoption.
What Are Best Practices for Secure Electronic Signature Usage?
To ensure legal compliance and data protection, follow these best practices:
1) Stay Compliant with Regulations
- Understand e-signature laws.
- Use identity verification to prevent unauthorised access.
- Maintain timestamped records for legal protection.
2) Protect Sensitive Data
- Use secure cloud storage with end-to-end encryption.
- Enable role-based permissions to restrict document access.
- Automate backups to prevent data loss.
3) Maintain an Audit Trail
- Keep detailed signing records for compliance.
- Enable unique identifiers & time stamps for security.
- Provide confirmation receipts to signers.
Frequently Asked Questions
Yes. Electronic signatures are legally binding in Australia under the Electronic Transactions Act .
You can digitally sign documents using tools like FLK it over, which offers SMS-based signatures and template management.