Recession rumors are everywhere. The Russia-Ukraine invasion, higher interest rates, and subsequent inflation are raising concerns that the U.S. economy is, once again, on the edge of a recession. Earlier this year, noted economists, politicians, and market veterans engaged in a great semantic debate over whether the U.S. economy is in recession or not. The argument somehow came down to the conclusion that it’s how you define the word recession. The general definition suggests that a recession occurs when two consecutive quarters of negative GDP (gross domestic product) are observed – which implies that the U.S. entered into the recession earlier in the summer of 2022. On the other hand, the National Bureau of Economic Research (NBER) exhibits a different side. According to NBER, the definition of recession shows a significant decline in economic activity spread across the economy that persists for more than a few months – which implies that the U.S. wasn’t in recession in the summer of 2022. So though many studies and predictions are pointing at the U.S. economy rolling over, none of them are perfect.
56% of Americans think that the U.S. is already in a recession.
Is the downturn really happening? The answer may vary! Perhaps, the sluggish economy is the best alarm for everyone to watch their spending and financial decisions that could put their financial goals in jeopardy. The recession can impair finances for anyone – an organization or an individual. This is why cost-effective digitization and technological advancement are more imperative than ever before. Take, for example, eSignature technology, which can help organizations reduce their spending and prepare for an impending economic change. Budgeting for an economic downturn can help your business be prepared by hunkering down on your finances for a financially uncertain future. Dive into the below blog to know how electronic signatures can save our backs even in potentially dire times.
Why should you consider eSignatures?
We naturally tend to consider the big budget costs while managing expenses, and this is where we miss a significant fact – smaller expenditures can also affect your overall finances. Here are some of the latest statistics on paper use, associated costs, and time wasted:
- The average office worker makes use of 10,000 sheets per year.
- 50% of business waste is comprised of paper.
- It takes 2-3 days or sometimes weeks to send/receive a paper-based document.
- 12.1 trillion sheets of paper are utilized per year in U.S. offices.
- Obvious costs associated with traditional wet signatures: paper purchase costs, ink costs, printing costs, shipping costs, scanner costs, storage costs, paper-disposal costs, and more.
- Hidden costs associated with traditional wet signatures: Cost to document retrievals, fraud and compliance failure, lost opportunities, disaster recovery, and more.
- The U.S businesses spend $8 billion per year on managing paper.
These stats are alarming enough to switch to electronic signatures instantly. The costs associated with traditional paper handling may seem negligible when scattered but round up to massive overheads in annual expenses. Moreover, this obsolete method involves risks of data loss or theft, document alteration, human errors, and so on. The emergence of e-signature technology not only helps save money but facilitates error-free, secure, and legal documentation. Organizations embracing digital signatures reduce document handling costs by a whopping 85%.
In addition, it helps companies reduce their carbon footprint. Going paperless also aids organizations in saving 80% on shipping costs.
Also Read: Economic Impact of Digital Signatures
Cost-Saving Benefits of E-Signatures
- Saves cost
Embracing digital signatures enables organizations to save money in the long run. You only have to invest once and use it to your advantage. It helps save on paper, printers, scanners, toner, shipping, storage, and handling.
- Reduces manual errors
According to a OneSpan survey, eSignature solutions are known to reduce 92% of scanning errors in financial institutions. The right online signature maker allows you to avoid errors that can cost your business a fortune.
- Increases efficiency
Printing documents, manually signatures, getting documents signed, getting approvals, and vice-versa – it sometimes takes weeks or months when you use traditional signing methods. However, e-signatures allow you to send, sign, and store documents within minutes without any security or legal constraints. According to Forbes, businesses can achieve anywhere between 70% to 80% efficiency improvements after replacing manual processes with digital technologies like e-signature solutions.
Businesses experience an 83% performance improvement in getting approvals, along with 86% savings in document costs. (ESRA, 2017)
- Adds security
Electronic signatures protect your documents from alteration, duplication, and unauthorized access. They ensure your documents are end-to-end protected and the data hasn’t been altered before signing. According to the business type and security requirements, you can also opt for a more secure version where the sender and receiver get a private key to sign the documents. This ensures the authenticity of the sender. A 2021 survey states that switching to online signatures and cloud storage has helped their business reduce missing and lost files by 66%.
- Adds legal value
The e-signature laws, such as the Uniform Electronic Transitions Act (UETA) and Electronic Signature in Global and National Commerce Act (E-SIGN Act), have given the same legal status to eSignatures as wet-ink signatures. Therefore, any document or agreement signed using a digital signature is legal and can be used as proof of transaction in a court of law. In addition, some laws also allow cross-country transactions to facilitate smooth business.
- Reduces carbon footprint
Going paperless can benefit you in many ways. Paper production companies use chlorine-based bleach that releases toxic material into the soil, water, and air. In addition, when paper rots, it radiates methane gas which is 25 times more toxic than CO2. Therefore, when you go paperless, it aids in reducing your carbon footprint.
- Fast turn-around
Opting for electronic signatures over traditional wet signatures speeds up the document signing process. Irrespective of the receiver’s time zone, distance, or geographic location, you can send documents, get them signed, and store them securely using e-signatures. There are certain laws applicable to different countries that allow cross-country transactions. This has made business more accessible than ever.
The Bottom Line!
The rumors of the looming recession are provoking inner fears for both business professionals and individuals. Around 80% of people are already losing sleep over the future of their finances during the recession period. Instead of panicking, pay extra attention to your spending and be wary of taking unwanted risks. There are numerous ways you can reduce your expenses and be mindful of spending in response to the uncertain financial future. An eSignature solution is one of them – you can save countless hours and money by going digital DrySign, a leading online signature platform with a wide range of features to streamline your digital document workflows and eliminate bottlenecks. You can give the free version a try to sign a document now. Start DrySigning today!
DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.