In the 4.0 era, digital transformation is no longer a trend but has become a vital need for every business. One of the key factors that helps optimize processes and shorten document processing time is electronic signature. So What is an electronic signature?, why are more and more businesses and accountants choosing to apply this technology instead of traditional handwritten signatures?
The following article is from Bizzi will help you understand the concept, benefits and how to implement electronic signatures effectively - safely - in accordance with legal regulations.
1. What is an electronic signature? Its importance in the digital age
An electronic signature (e-signature or electronic signature) is a modern means of authentication, created in the form of electronic data such as symbols, letters, numbers, images or sounds, to logically associate with a data message. The main purpose is to confirm the identity of the signer and express their consent to the content of the electronic document or contract.
In a context where businesses increasingly rely on digital processes, understanding What is an electronic signature? Not only does it help ensure the legality of electronic transactions, it also brings many outstanding benefits such as:
- Authentication and information security: Electronic signature helps verify the identity of the signer and detect any changes in data after signing, ensuring integrity and transparency in transactions.
- Speed up your workflow: Instead of having to print, sign by hand and then scan again, electronic signatures help shorten document processing time to just a few seconds – an important factor in a highly competitive business environment.
- Legal and widely recognized: According to legal regulations in Vietnam and many countries, electronic signatures have the same legal value as handwritten signatures if they meet all conditions.
- Save operating costs: Businesses reduce costs of printing, delivering, storing documents and increase efficiency in document management.
- Accompanying the digital transformation process: This is an indispensable solution in the journey digitize businesses, especially in finance - accounting, contracts and human resources.
The application of electronic signatures is not only a trend but also an inevitable requirement for businesses to adapt, develop and ensure competitiveness in the 4.0 era.
2. Legal value and related regulations of electronic signature
Clearly understand What is an electronic signature? Not enough, businesses and accountants also need to master legal regulations to properly implement standards, avoiding legal risks in electronic transactions.
2.1 Legal value of electronic signature
Electronic signatures are recognized by Vietnamese law as having the same value as traditional handwritten signatures and seals if they meet all the conditions stipulated in the Law on Electronic Transactions and related guiding documents. Specifically:
- About signer authentication: The method of creating an electronic signature must allow the identity of the signer to be verified and clearly demonstrate their agreement with the content of the document.
- About reliability: Signatures must be generated and managed through a reliable security process that is appropriate for the intended use.
- Specialized electronic signature or digital signature: Recognized by law as having the same legal value as an individual's signature on a paper document if it is secure and certified by an organization providing electronic signature certification services.
2.2 About electronic seals in enterprises
Electronic signature acts as a legal seal of the enterprise when created from a standard and certified security system. When fully meeting the conditions to ensure safety, it is recognized in official and legal transactions.
2.3 Conditions for electronic signatures to be considered secure
To ensure that an electronic signature has legal value and can replace a handwritten signature in electronic transactions, the signature needs to meet a number of specific security and authentication criteria as follows:
- The signature data is uniquely associated with the signer and is under their control.
- Any changes in the data after signing can be clearly detected.
- The signature verification process must be agreed upon by the parties and comply with technical safety regulations.
2.4 Regulations on current electronic signature templates
The correct presentation of electronic signatures not only ensures aesthetics but also helps electronic documents to be accepted in legal and administrative transactions. Below are instructions on the format and location of electronic signatures according to regulations:
- For individuals: Blue handwritten signature image (.png format), placed in the position corresponding to the handwritten signature in the paper document.
- For business: Red seal image (.png format), placed in the first right corner of the document, clearly displaying the business name and signing time according to ISO 8601 standard (Vietnam time zone).
2.5 Principles of using electronic signatures in transactions
The law allows parties to proactively agree on the use of electronic signatures and choose a suitable certification service provider. In particular, for state agencies, electronic signatures must be certified by a competent state-designated unit.
3. Popular types of electronic signatures
In the current market, electronic signatures are applied in many different forms, depending on the purpose of use and legal requirements of each business. Understanding each type of signature helps businesses choose the right solution and comply with legal regulations.
- Digital signature: As a form of electronic signature, applying encryption algorithms to create a unique string of characters, which has the role of verifying the identity of the signer, preventing forgery and ensuring the integrity of the data message. In Vietnam, digital signatures have the same legal value as handwritten signatures or red seals of enterprises.
- Image signature: An electronic signature uses a handwritten signature image created by scanning or drawing on a mobile device, stored as an image file to attach to a document.
- Scanned signature: An electronic signature created by scanning an original image of a handwritten signature, usually stored as an image file for insertion into an electronic document or contract.
- Classification according to the Law on Electronic Transactions 2023: In addition to the above forms, the Law on Electronic Transactions 2023 also classifies electronic signatures according to the scope of use, including Specialized electronic signatures, Public digital signatures and Specialized digital signatures for official use.
4. Distinguish between Electronic Signature and Digital Signature
Electronic signatures and digital signatures are often confused in practical applications, however, these are two concepts with different characteristics. A clear distinction helps businesses choose the right solution, ensure legal compliance and optimize the efficiency of digital transactions.
Similarities: Both electronic signatures and digital signatures are used to replace handwritten signatures and seals of individuals, organizations, and businesses in the electronic transaction environment. They both bring benefits in terms of legal value, simplifying processes, and saving time and costs.
Differences:
| Criteria | Electronic signature | Digital signature |
| Concept / Properties | Information accompanying the data to confirm the integrity and intent of the signer | Digital information is encrypted to authenticate the data and the signer. |
| Format / Standard | Can be images, text, audio, video | Encryption using asymmetric algorithms and public key infrastructure (PKI) |
| Legal value | No absolute legal value, depends on the agreement between the parties | Has the same legal value as a handwritten signature, as specifically regulated by law. |
| Security | Lower security, vulnerable to tampering or modification | High security, difficult to copy or counterfeit |
| Confirmation / Certification | No authentication required | Certification from a digital signature certification service provider is required. |
| Authentication software | Proprietary software may be required for authentication in some cases | Can be authenticated independently, regardless of specific software |
| How to Create / Use | Easy to create, can be scanned, inserted into Word/Excel documents or created on websites | Must register with a digital signature certification service provider |
| Important Note | Is an umbrella concept, with or without endorsement | It is a form of electronic signature but always has high authenticity and legality. |
5. Benefits of using electronic signatures in business
The application of electronic signatures not only helps businesses adapt quickly to the digital transformation trend, but also brings many practical benefits in management and operation. Below are the outstanding benefits of using electronic signatures:
- Save time and money: Significantly reduces the time it takes to process documents and contracts without the need for printing, sending, or meeting in person. As a result, businesses can reduce paperwork, operating, and human resource costs.
- Improve work efficiency: Signing is quick, not limited by location or time. Businesses can sign multiple documents at the same time, thereby increasing work efficiency and ensuring progress.
- Expanding business market: With electronic signatures, businesses can transact and sign contracts with partners anywhere in the world without having to meet, opening up opportunities for global cooperation.
- Protect the interests of businesses: Electronic signatures – especially digital signatures – have the same legal value as handwritten signatures. This helps prove legal responsibility in electronic transactions and reduces the risk of forgery and disputes.
- Simplify administrative processes: Support businesses in performing procedures such as tax declaration, signing financial reports, submitting administrative documents... quickly and transparently on a digital platform.
6. Instructions on popular ways to create electronic signatures
After understanding What is an electronic signature?, the next step is to choose a signature creation method that suits your business needs. Below are 5 popular, easy-to-implement methods that you can apply immediately:
- Create electronic signature in image format (.png): The simple and traditional way is to sign by hand on a white paper, then use your phone or scanner to take a photo and save it as a .png image. This image can be edited with tools like Photoshop or Canva to make it clearer and the background transparent.
- Create electronic signature on Word: Microsoft Word supports creating a signature line in the menu Insert > Signature Line. You fill in the name, position and email address of the signer. When it comes to the signing step, the user can type or draw the signature as desired.
- Create electronic signature on Excel: The method is similar to Word. Go to Insert > Text > Signature Line > Microsoft Office Signature Line, then fill in the necessary information. Excel is suitable when you need to sign on spreadsheets, payslips, expense statements...
- Create electronic signature on PDF: With software like Foxit Reader, you select the item Fill & Sign or PDF Sign, then draw directly, enter text or upload a signature image. This method is convenient for signing contracts, invoices, minutes... in PDF format.
- Create electronic signature online for free: Access websites like CreateMySignature.com, Smallpdf, or Signaturely. You can draw by hand, type your name, or upload a photo of your signature, then download the .png or .pdf file to insert into your document as needed.
7. Bizzi – Solution to help businesses comprehensively transform digitally and apply electronic signatures
In the context of explosive digital transformation, the question “what is an electronic signature” is not just a concept but has become an essential need of every modern business. Bizzi offers a comprehensive digital solution ecosystem, helping to integrate and deploy electronic signatures seamlessly into accounting, financial and operational processes.
Here's how Bizzi helps businesses apply electronic/digital signatures in each important transaction:
- B-invoice (Electronic bill): Solution Electronic invoice Bizzi's allows businesses to issue, download and store invoices with integrated valid digital signatures in accordance with regulations. This completely replaces traditional paper invoices, ensuring legality and data integrity.
- Automatic processing and reconciliation of input invoices (IPA + 3-way matching): Bizzi helps accountants check, reconcile and archive incoming invoices without manual operations. Although it does not generate direct electronic signatures, the solution operates efficiently within a fully digitized process where digitally signed documents are processed securely and quickly.
- Bizzi Expense – Expense management: This solution digitizes the budgeting, tracking, and approval process with electronic confirmation steps, instead of manual signatures on paper. This reduces errors, increases transparency, and speeds up approvals.
- Bizzi Travel – Management of per diem expenses: Booking tickets, approving business trips and managing expenses are all automated. Electronic signatures help legalize relevant documents without requiring hard copies, thereby streamlining administrative procedures.
- ARM – Debt control: Bizzi supports automatic debt tracking and reminders. Documents such as debt reconciliation reports, when integrated with electronic signatures, will ensure legality, minimize disputes and increase transparency in financial relations with partners.
Overall, Bizzi not only answers the question “what is an electronic signature”, but also helps businesses apply it comprehensively in practice. Bizzi's solution aims to eliminate manual paperwork, shorten business processing time, minimize errors and operating costs. With a strong technology platform, businesses can confidently transform digitally and comply with legal regulations more easily.
To improve the efficiency of invoice management as well as automate the financial and accounting processes of the business. Register to experience Bizzi's comprehensive solution suite today!
- Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
- Schedule a demo: https://bizzi.vn/dat-lich-demo/
Conclude
Clearly understand What is an electronic signature? not only helps businesses grasp the digital transformation trend but also opens up opportunities to optimize workflows, save resources and ensure the legality of all electronic transactions. In the digital age, the application of electronic signatures along with Comprehensive digital solutions like Bizzi is a necessary step to help businesses improve their competitiveness and effectively integrate into the global market.
