What are the functions of a digital signature

TL;DR

Digital signatures let people sign, fill, and manage documents electronically with legal validity and security. Using signNow, organizations can upload or create forms, add fields, send for signature, collect signer authentication, and store completed files with an audit trail. This reduces turnaround time, supports compliance (ESIGN, UETA, HIPAA with BAA), and integrates with common business systems. Typical functions include verifying signer identity, ensuring document integrity, proving consent, automating signature workflows, and preserving legally admissible evidence for each signed transaction.

What a digital signature is

A digital signature is an electronic mark that shows a specific person approved a document and that the document has not been changed since signing. Imagine stamping a paper contract with an invisible, traceable seal that proves who signed and when; a digital signature does this automatically using cryptographic techniques. In practice with signNow, users upload or create a form, place signature and data fields, send the form for eSignature, and receive a completed file with a tamper-evident audit trail and timestamp for legal and operational recordkeeping.

Legal validity and business reasons

Digital signatures provide legally binding consent under U.S. ESIGN and UETA statutes while improving speed, traceability, and cost efficiency. Use signNow when closing remote sales contracts or collecting employee onboarding signatures at scale, and when you need an auditable, secure record that meets HIPAA, SOC 2, and 21 CFR Part 11 requirements for regulated documents.

Common adoption challenges

• Resistance to change among staff who expect in-person paper signatures and may need training and governance to adapt.
• Complex compliance requirements for regulated industries that require BAAs, identity proofing, and retention policies before adoption.
• Integration complexity when legacy systems lack APIs or mapping for signer data and document templates.
• Signer access issues when recipients lack reliable internet or mobile access and need offline or assisted signing workflows.

Who uses digital signatures

Organizations across real estate, healthcare, finance, legal, and education use eSignatures to speed approvals and preserve records.

• Real Estate teams signing leases and purchase agreements remotely.
• Healthcare providers collecting patient consent forms under HIPAA controls.
• Finance groups approving loan documents and tax filings faster.

Roles that benefit most

IT Administrator

IT administrators configure signNow integrations, enforce security controls like SSO and 2FA, set retention rules, and provide API keys for automated document issuance across CRM and ERP systems. They also manage user provisioning and system-level compliance settings.

Business User

Business users such as HR managers, sales reps, and operations staff create reusable templates, send documents for eSignature, track signing status, and store completed agreements. They rely on templates and bulk send to scale routine signature processes efficiently.

Security and compliance features

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Certifications held: SOC 2 Type II

Regulatory compliance: ESIGN and UETA

Healthcare compliance: HIPAA (BAA req.)

International standards: ISO 27001

Risks of improper eSigning

Invalid consent: May invalidate contract

Data breach: Leads to regulatory fines

Poor auditability: Weakens legal defensibility

Noncompliance: Triggers penalties

Operational delays: Slows business processes

Reputation damage: Erodes stakeholder trust

Real-world signNow examples

These case summaries show how different organizations complete and manage documents with eSignature workflows in signNow.

Optica Ventures — Sales Agreements

Optica Ventures simplified customer signing with an intuitive interface and reusable templates

• Template reuse sped document preparation
• Faster customer turnaround reduced manual errors

Resulting in quicker deal completion and improved customer experience, according to COO Brian Fitzgibbons.

Xerox — NetSuite Integration

Xerox integrated signNow with NetSuite to route documents automatically and gather signatures on financial and legal forms

• Integration enabled automated document creation from ERP records
• Reduced manual entry and reconciliation tasks

Leading to more reliable processing and better auditability, notes Kodi-Marie Evans, Director of NetSuite Operations.

Step-by-step signing process

Follow these clear steps to upload, prepare, and collect a digital signature using signNow on the web or mobile app.

• 01
  Upload Your Document: Open signNow, choose Upload, and select the file from your device or cloud storage.
• 02
  Place Fields: Open the editor, drag signature and data fields onto the form where input is required.
• 03
  Set Signer Order: Assign signers, set signing order, and configure authentication or access rules for each signer.
• 04
  Send for Signature: Click Send, enter recipient emails, add a message, and dispatch the document for eSignature tracking.

How the signing workflow works

A typical signNow workflow moves the document from draft to signed state while preserving security and auditability at each step.

• Create or Upload: Upload a PDF or create a form from templates within signNow for reuse.
• Add Signature Fields: Insert signature, initials, and data fields aligned with the document layout.
• Authenticate Signers: Require email verification, access code, or additional authentication methods where needed.
• Complete and Store: Collect signatures, lock the file, and save with an audit trail to cloud storage.

Primary functions of digital signatures

Digital signatures provide authentication, integrity, consent, and auditable records. signNow combines these functions into practical tools teams use daily.

Authentication

Verify signer identity through email, access codes, or advanced authentication and record the method in the audit trail for legal defensibility.

Integrity

Seal completed documents with tamper-evident protections and cryptographic hashes so any post-signing changes are detectable and recorded.

Consent

Capture explicit signer approval with clear signature and initial fields, timestamps, and acceptance language to demonstrate agreement intent.

Audit Trail

Maintain a comprehensive, timestamped log of actions for every document that shows viewing, field completion, and signature events.

Best practices for digital signatures

Follow these practical guidelines to ensure digital signatures remain legally valid, secure, and operationally efficient across teams.

Use clear intent language in documents

Include an explicit signature block and consent wording that explains the legal effect of signing, which strengthens enforceability and clarifies signer intent.

Apply appropriate signer authentication

Choose stronger authentication for higher-risk transactions, such as access codes, two-factor authentication, or identity verification for regulated documents.

Standardize templates and fields

Create approved templates with preset fields and business logic to reduce errors, maintain consistent data capture, and accelerate document preparation.

Retain completed records securely

Store executed PDFs with their audit trails in encrypted cloud storage and apply retention policies consistent with legal and regulatory requirements.

When to use digital signatures

Digital signatures are appropriate for most commercial documents; use the method that matches your legal and operational needs.

01

Urgent agreements

When you need same-day contract execution across remote parties.

02

Recurring approvals

For routine renewals or recurring vendor authorizations.

03

Regulated forms

When documents require audit trails and compliance controls.

04

High-volume signing

When bulk or automated signature sends reduce manual workload.

Typical processing timeframes

Processing time varies by workflow complexity; these guidelines reflect common experiences for electronic signature completion.

Simple single-signer forms:

Often completed within minutes to hours.

Multi-party contracts:

Typically finalized within one to three business days.

Bulk sends for campaigns:

Completion can span several days to weeks depending on recipient responsiveness.

Regulated document reviews:

May require additional time for identity verification and compliance checks.

API-driven automation:

Can complete thousands of transactions in hours under proper configuration.

Advanced digital signature functions

Beyond basic signing, modern platforms provide automation, integrations, and configurable authentication to support enterprise workflows and regulatory requirements.

Bulk Send

Send one document to many recipients with personalized fields and tracking.

Conditional Fields

Show or hide fields based on responses to streamline complex forms.

API Access

Automate document generation, sending, and retrieval through REST APIs.

Payment Collection

Request payments during signature workflows for invoices and agreements.

Advanced Authentication

Use access codes, two-factor, or identity verification where required.

Kiosk Mode

Enable on-device signing for in-person or shared-device scenarios.

Audit trail and records steps

Maintain and review audit trails to support legal admissibility and internal controls for signed documents.

01

Enable Audit Logs:

Turn on audit trail for all templates and sends.

02

Capture Authentication:

Record method used and any access codes.

03

Save Signed PDFs:

Store final PDFs with embedded audit metadata.

04

Export Logs:

Export audit records for legal review or compliance.

05

Retain per Policy:

Apply document retention settings per legal requirements.

06

Review Access:

Regularly audit who can view or export documents.

FAQs About digital signatures

Answers to common technical and legal questions about creating, signing, and managing digitally signed documents using signNow.

• Why is my signature invalid?
  Confirm the signer completed the signature field and that the document's audit trail shows a valid timestamp. If fields were edited after signing, the platform will mark the file as tampered and present details in the audit record; consult the audit log to identify actions and reissue the document if necessary.
• How do I add signer authentication?
  In the send dialog choose Additional Authentication and select access code or two-factor. signNow supports access codes, email verification, and advanced signer authentication in Enterprise plans, and you can require different methods per signer when sending documents.
• Can I sign offline?
  signNow supports mobile signing with offline capabilities; users can fill and sign without connectivity, and the completed transaction synchronizes with the server when a connection is restored, preserving timestamps and the audit trail.
• How do I retrieve audit reports?
  Open the completed document, access the Audit Trail panel, and export the event log. Administrators can also pull bulk reports via the signNow API for compliance or eDiscovery purposes.
• Is signNow HIPAA compliant?
  Yes, signNow supports HIPAA compliance when a Business Associate Agreement is executed and workflows are configured securely with appropriate access controls and encryption.
• What file formats are supported?
  signNow accepts PDF, Word, and common image formats for uploads, and converts files into secure, signable documents preserving layout and fields.

Implementation milestones

A phased rollout helps teams adopt eSignature effectively. Typical milestones include planning, pilot, integration, full rollout, and optimization stages.

01

Plan Requirements

Document legal, security, and workflow needs before configuration.

02

Pilot Templates

Test core templates and signer flows with a small user group.

03

Integrate Systems

Connect CRM, ERP, or cloud storage during the integration phase.

04

Train Users

Deliver role-based training for senders and administrators.

05

Roll Out

Gradually expand usage to additional teams and departments.

06

Monitor Usage

Track completion rates and turnaround time metrics.

07

Refine Templates

Optimize templates based on user feedback and errors.

08

Audit Compliance

Periodically review configurations and retention policies.

Devices and platform requirements

signNow runs on modern web browsers, native mobile apps, and via APIs for programmatic access.

• Web Browser Support: Chrome, Edge, Safari
• Mobile Platforms: iOS and Android
• API Requirements: RESTful API, TLS

Suggested workflow configuration

Recommended default settings for a secure signNow workflow that balances security and ease of use.

Feature	Default
Reminder Frequency	48 hours
Signer Authentication	Email verification
Audit Trail Enabled	Yes
Document Retention	7 years
Storage Location	Encrypted cloud

Feature availability comparison

A brief availability comparison of common digital signature features across three major vendors for quick reference.

Feature Comparison Across Three Vendors	signNow	DocuSign	Adobe Sign
Mobile App Availability
Audit Trail Included
Bulk Send Capability
API Access

Pricing and feature snapshot

Data current as of publication: a concise comparison of starting price, trials, bulk send availability, audit trails, HIPAA support, and envelope caps for five providers.

	$8/user/mo	$8/user/mo	$13/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no card required	Trial avail.	Trial avail.	Trial avail.	Trial avail.
Bulk Send	Yes, on Premium	Available on paid plans	Available on paid plans	Yes	Available on paid plans
Audit Trail	Yes, full audit trail	Yes, full audit trail	Yes, full audit trail	Yes	Yes
HIPAA Compliant	Yes, BAA required	Yes, BAA required	Yes, BAA required	Yes, BAA required	Yes, BAA required
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap