Signing documents by hand is quickly becoming a thing of the past. Everything from business contracts to simple administrative paperwork can be e-signed and submitted digitally.
Rather than printing, signing, scanning, and returning documents via email or an online portal, automation tools let you complete the entire process in record time.
However, even the eSigning process has its own stumbling blocks and pitfalls. Sometimes, extra steps can complicate processes that should be relatively simple and painless.
Fortunately, automating portions of the eSignature process can simplify document signing. In this article, we’ll break down what automated signatures are, how they work, and when you should use them.
What is an automated signature?
Automated signature solutions allow e-signatures to be applied to a document automatically and with only minimal effort from the signer.
In the traditional signing process, users need to print and manually sign every document with a handwritten signature, then scan it and send it back. Automated signatures break through this bottleneck by allowing users to automate a portion of the e-signing process.
This functionality is very useful for creating documentation that doesn’t change but still requires a legal signature in order to become valid.
Here are a few examples and use cases where an automatic signature workflow makes sense:
- HR and onboarding. A hiring manager needs to generate offer letters and NDAs for new hires. Legal has pre-approved the text, and it doesn’t change between documents.
- Sales and contracts. Standardized agreements like order forms and recurring service contracts don’t change but are required for other business processes to take place.
- Finance and invoicing. Payment authorization forms may require an e-signature from both parties before payment can be rendered.
- Customer success. Templates for auto-sign service agreements or supporting documentation can be triggered and generated by a customer request.
In these and similar situations, signature automation makes it easier to capture necessary documents without additional manual steps that achieve the same result.
However, automated signatures are never fully automated.
Due to legal frameworks like the ESIGN Act in the US and eIDAS in the EU, some degree of human interaction is still required when signing digital documents.
Typically, this is reduced to clicking a few buttons at the end of the e-signing process, although anti-tampering and security features like identity verification may be required before signing takes place.
How does an automated signature work?
Because of the legal ramifications surrounding e-signatures, fully automating the act of signing isn’t possible. Instead, most platforms try to streamline workflows that surround the signing process, like document creation, delivery, and tracking.
These optimizations can also extend to semi-related tasks like template creation, role-based signing, and activity tracking, significantly reducing the amount of work required to initiate and complete the signature workflow.
For example, using PandaDoc, it’s possible to generate a document from a saved template. If your template contains an e-signature block, that field will generate automatically as the document is created. PandaDoc users can also modify their profile settings to include a personal signature.
When it’s time to sign, all you need to do is click to initiate signing and click again to apply your electronic signature to the document. While it’s still a manual process, workflow tools have reduced it to a two-click task that can be completed in a matter of seconds.
And that’s not all.
Behind the scenes, audit trails are tracking document activity, and security measures are in place to ensure that documents are safe and authentic. Once the document is signed and completed, PandaDoc will generate a unique digital certificate that can be used to prove document authenticity. This is done automatically, with no additional work required by signers.
While other platforms offer a similar experience, the level of automation you can achieve for your signature processes will vary based on the e-signature solution you use. Platforms like DocuSign or Adobe’s Acrobat Sign, only offer limited automation and formatting tools while solutions like Proposify and PandaDoc have more leeway for document creation and formatting.
Benefits of automated signatures?
Even though automated signatures can’t eliminate every step of the signing process, they excel at simplifying the entire document workflow.
By reducing the number of manual tasks required to prepare, send, sign, and track documents, e-signature software and the automation it provides is critical for businesses working with digital documents.
Here are just a few of the key advantages you’ll enjoy when working with e-signature automation:
- Better speed and efficiency. Automation reduces repetitive manual steps like inserting signatures, formatting documents, or chasing down approvals. With e-signature software, many processes can be reduced to a few clicks, freeing up more time for valuable work.
- Increased consistency and scalability. Using an established service provider like PandaDoc allows teams to create reliable workflow automations around e-signatures. This eliminates guesswork, keeps processes consistent, and allows for scalability as the business continues to grow.
- A better customer experience. Consistent, automated signing solutions make it easier to close deals in record time. All signatories can sign and countersign quickly, and some solutions even offer collaborative tools so that stakeholders can negotiate terms in real time before finalizing a deal.
- Built-in security and tracking. For both senders and recipients, a streamlined signing process means fewer clicks, less confusion, and faster turnaround times when completing electronic documents. For confidential and legal documents, these added features also provide an extra layer of security around sensitive information.
Because automated signatures play such an essential role in modern business, it’s also common to see them coupled with document management software and apps for mobile devices that allow for better document control and easy anywhere/anytime e-signing.
How do I create an automated signature?
Creating automated signatures starts with setting up the basics of your e-signature tools. Layering in templates, preferences, and workflows can also add extra steps to the setup process, but taking these steps will reduce friction when it’s time to sign.
The specific steps you need to follow will vary depending on your platform, but here’s a general outline of how to create and enable automated signatures.
1. Review your e-signature options
Most e-signature tools (like PandaDoc, DocuSign, and others) provide multiple types of signature options for e-signing a document.
Usually, you can do this by drawing, typing, or uploading your signature.
Before you go any further in this process, take the time to review what signature options your e-signing solution supports.
2. Create your e-signature and upload it to your profile
If your e-signature tool supports multiple e-signing options, it’s likely that you can save your preferences inside your custom profile.
In PandaDoc, you can do this by updating your profile settings to include an image of a handwritten, personal signature.
Sign a blank piece of paper and scan it, or use a tool like a drawing tablet to create a digital version of your signature. Once you have a digitized version of your signature, upload it to PandaDoc.
Anytime you’re prompted for your digital signature during the e-signing process, the signature you uploaded will automatically appear as an option.
3. PandaDoc exclusive: Create your document
In most other e-signature tools, you’ll need to create the body of your document in Microsoft Word or Google Docs before importing the PDF version of your document into your e-signing solution.
This can be tedious during the signing process, especially if signatories need to negotiate some aspects of the deal prior to finalizing the document. Especially in those situations, teams often need to pull their document back into a word processor, make changes, re-upload, and prepare the document for signature again.
PandaDoc has a built-in editor that allows teams to build documents entirely from scratch, meaning that every aspect of document creation can be handled on the platform.
Already have a document? No problem. You can import any DOCX file directly to PandaDoc. The editor will convert it automatically so that you can finalize the process within the platform.
4. Prepare documents for e-signing
After uploading your document to your preferred platform, you’ll need to prepare it to support the digital signing process. Typically, this involves dragging and dropping specialized e-signature blocks or fields on your document.
PandaDoc also follows this process if you’ve uploaded a PDF. However, if you’ve created a document within the PandaDoc editor, you can also add e-signature fields and assign the fields to appropriate signers during that process.
Once you’ve taken those steps, you can send your document to recipients via email or link and begin the signing process.
5. Send and e-sign
After your document is prepared, you’ll be able to send it to recipients and have them follow the e-signing process.
If you’ve followed the steps above and uploaded a copy of your handwritten signature, then your process will be different from the one that standard recipients follow. While most signers will need to draw or type their signature to finalize the document, your e-signing solution will prompt you to apply your prepared e-signature automatically.
You’ll still need to click the e-signature block and acknowledge your intent to sign, but the process will be forever reduced to a few clicks!
6. Create a template
Most e-signature solutions will allow you to create a template from commonly used documents. For many brands, this is an important step when standardizing business documentation.
For example, if you have common documents like NDAs or new hire onboarding paperwork where only a few inputs change (name, date, job title, etc.), a template allows for fast and easy document duplication with minimal time wasted on formatting and preparation.
In PandaDoc, template creation can be used to duplicate documents, but teams can also get more granular by saving specific blocks and snippets to the content library for fast reuse when creating future content.
Regardless of the platform you use, taking this step will allow you to skip the document preparation and formatting steps covered in this walkthrough. The next time you need to use the document, you can generate it from the template, assign recipients, send, and sign within minutes.
The difference between automated, electronic, and digital signatures
While we’ve been talking about automated signatures, it’s easy to confuse automation with the purpose and function of electronic and digital signatures and how they relate to e-signing.
Let’s take a closer look at each of these terms and what they actually mean.
Electronic signatures
Broadly speaking, an electronic signature (eSignature) is a legally recognized method of signing a document in a digital form. This can be something as simple as typing your name in a box or clicking a button that says, “I agree.”
Under laws like the ESIGN Act (US) and eIDAS (EU), these types of signatures are legally binding when proper consent and intent are demonstrated.
It’s a broader definition than you might think. One notable court case in Canada, which follows similar laws to those elsewhere in the world, has ruled that the thumbs-up emoji can constitute a legally binding signature.
Digital signatures
A digital signature is a specific type of electronic signature that uses encryption and certificate-based authentication to ensure the signer’s identity and protect the integrity of the document.
This type of signature is more secure than a standard electronic signature. The added layers of security seek to ensure that both signers and documents are authentic. In the event of a legal dispute, documents signed with digital signatures are meant to ensure non-repudiation, meaning that the document can’t be denied or refuted.
This is essential for legally binding documents, and it’s what most e-signature platforms (including PandaDoc) will provide.
Automated signatures
As we’ve been discussing in this article, e-signature automation is a workflow enhancement within the signing process.
However, unlike the other two options in this list, automated signatures aren’t a separate legal category. Because electronic signatures can’t be fully automated due to existing legalities, these steps are meant to streamline the process to minimize the required input from signers.
E-signature automation involves steps like template creation, setting workflow rules, or adjusting profile settings to make e-signing faster and more efficient.
Sign documents faster than ever with PandaDoc
Ready to streamline your e-signing process and eliminate the constant repetition?
PandaDoc has your back. Our platform offers end-to-end document creation, including an onboard editor and document management system so that you can create, send, sign, and store documents all in one place.
For brands seeking better efficiency and a consolidated workflow, PandaDoc’s templates, saved signature tools, pre-assigned signer roles, and powerful workflow automations can help you create and sign documents faster than ever.
Get a free, personalized demo and let one of our product specialists show you how PandaDoc can change your entire document workflow.
Frequently asked questions
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Simply put: You can’t because the legal framework around e-signatures prevents full automation.
For digital signatures to be valid, a human has to acknowledge the document, its content, and their intent to sign. Doing so carries legal weight, and fully automating the process could create loopholes that invalidate the authenticity of a signed contract.
However, automation isn’t entirely off the table. It’s possible to use workflows and processes to reduce the e-signing process down to a few clicks.
With e-signing platforms like PandaDoc, you can do this by updating your profile settings, using templates with pre-assigned roles, and leverage automation tools so that your signature is ready to apply with minimal effort.
However, this process can never be fully automated.
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Legally speaking, an electronic signature is any electronic symbol or process that indicates agreement to the terms of a document.
This could include:
- Typing your name
- Uploading a scanned signature
- Clicking an “I agree” button
- Drawing your signature on a touchscreen device
- Replying to an email with “I do.”
As long as the signer shows intent and consents to sign, the signature is legally valid under most e-sign laws.
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Digital signatures are a more secure form of electronic signature.
This approach uses cryptographic methods to authenticate the signer and protect the integrity of the document. Certificate-based IDs and encryption are used to ensure that neither the signature nor the document has been tampered with.
When signing with PandaDoc, you’ll also get a unique, algorithmically generated signing certificate to prove that a document is authentic.
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