Digital signature vs electronic signature: what's the difference?

Understanding the difference between digital and electronic signatures

The terms electronic signature and digital signature are often used interchangeably, but they aren't the same. This article explains the distinction and why understanding it can help businesses choose the right signing method for different types of documents.

An electronic signature is a broad term covering any method of signing a document electronically, such as typing your name, drawing a signature or clicking to accept terms. A digital signature is a more secure type of electronic signature that uses encryption and digital certificates to verify the signer's identity and confirm that the document hasn't been altered after signing.

The article also explores the additional assurances digital signatures provide, including proof of signer identity, document integrity, timestamps and comprehensive audit trails. These features can be particularly valuable for organisations handling sensitive agreements, regulated documents or compliance-focused workflows.

Understanding the difference enables accountants, bookkeepers and professional service firms to select the appropriate level of security and verification for each document, balancing convenience with compliance and reducing risk when managing client agreements digitally.

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