Electronic signature in accounting

Electronic signature makes it possible to approve accounting documents digitally with legally binding effect. When the signature is combined with workflows in ReAI, traceability, integrity and time savings in the finance function are ensured.

Illustration of electronic signature in accounting

What is an electronic signature?

Electronic signature is a digital mechanism that confirms the identity of the signer and that the document is authentic. In the UK, legal validity is generally based on the Electronic Communications Act 2000, case law, and eIDAS-derived trust service principles.

Key terms

Authentication: Verification of who signs, for example with multi-factor identity checks.
Integrity: The document is unchanged after signing and can be traced via hash values.
Non-repudiation: The signature cannot be denied afterwards because the identity is logged.

Types of electronic signatures

Type of signature	Description	Typical use in accounting
Simple electronic	PIN code or email verification	Internal Approvals
Advanced electronic	Unique signature linked to identity and controlled by the signatory	Contracts, agreements
Qualified electronic	Certificate issued by a qualified trust service provider with verified identity	Annual accounts, audit

Requirements and regulations

The Companies Act and HMRC record-keeping requirements set expectations for traceability, secure storage and documentation of approvals. To fulfill this you should:

Store signed documents in a system that ensures readability throughout the storage period.
Link the signature to a document number so that it can trace back to the document.
Describe the signing process in the company’s internal control.
Ensure that log data is available to the auditor and board.

See also guidance on integrity to ensure that data is not manipulated between signing and archiving.

Workflow with ReAI

Step	Activity	Result
1	Create document from ReAI and send for signing	Attachment data is sent encrypted
2	Signer authenticates with multi-factor identity check	The identity is confirmed
3	Signature is stored together with document and time stamp	Complete Audit Trail
4	Approved document updates the accounts automatically	The attachment is entered in the books and marked

Such a workflow can be linked with API integration and automation to ensure that fully signed documents are archived and posted without manual steps.

Benefits for the finance function

Faster decisions: Signature can be carried out from mobile, regardless of where the manager is located.
Better control: Audit trail with time stamp and IP address provides security during supervision.
Reduced risk: Less need for manual paperwork reduces sources of error and loss of documents.
Better collaboration: Several people can sign the same document in the correct order with clear roles.

How to choose a solution

Critical Factor	What you should consider	Questions to the supplier
Integrations	Does the solution support ReAI, ERP and professional systems via open APIs?	What ready-made integrations exist?
Security	Encryption, data storage in the EU/EEA and certifications	Which certifications (ISO 27001) do you have?
User Experience	Easy for both internal and external signatories	How does signing work on mobile?
Archiving	Long-term storage in line with UK record-keeping requirements	What format are the documents delivered in afterwards?

Documentation and verifiability

Save the signature proof together with the PDF or XML version of the document.
Use metadata fields to store signature ID, timestamp and identity verification reference.
Activate alerts if documents are not signed by the deadline.
Test retrieval regularly so that the auditor can quickly find documentation.

Electronic signatures are an important step towards comprehensive digitization of accounting processes. When ReAI combines signing, archiving and bookkeeping in one system, the finance function becomes both more efficient and more verifiable.