We still hear people worried about using an electronic process for approving invoices for payment. One of their greatest concerns is keeping paper copies of the invoices. Someone has told them that it is a legal requirement. We have even seen people print invoices that were sent to them electronically just to have a paper record. We have some good news for you. We are going to let you in on a big secret. Electronic records, approvals, and signatures are legal and have been for over 20 years.
The Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN) provide guidance for using electronic signatures and records.
ESIGN Act: https://www.fdic.gov/regulations/compliance/manual/10/x-3.1.pdf
Florida’s UETA: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0668/Sections/0668.50.html Each state that has adopted UETA has their own law that is based on the Federal UETA.
These Acts make the point that with proper procedures and controls in place, electronic records are equal to paper records.
Proper Procedures is the key here. With an automated AP solution, you can establish the procedures and controls within the software and eliminate the need for paper records. This allows you to significantly accelerate your AP process and recordkeeping processes.