Digital signature: Tax consultants benefit from legally valid e-signature

Digital signature: Tax consultants benefit from legally valid e-signature

At first glance, the digital signature is nothing new. After all, when a parcel is delivered to you, you already write your name in a sweeping manner on a display. But while the world of work has increasingly shifted to the Internet, the signature has long remained a paper tiger. Fortunately, the electronic signature has changed that - and it can do much more than autograph packages.

The requirements for electronic signatures apply throughout the EU and therefore hold enormous potential for speeding up workflows and feedback loops. Instead of relying on a singular tool for this task, however, you should choose a solution that integrates the digital signature into your workflows in a meaningful and legally secure way. This saves your time - and that of your clients! 

So it's high time to integrate the digital signature into your internal office processes and benefit from digitization as a tax advisor!

What is a digital signature?

The digital signature is a way of signing contracts, annual financial statements and other important legal documents and processes electronically in a legally secure manner throughout the EU area. There are three different types of digital signature, which meet different legal requirements:

• Simple electronic signature
• Advanced electronic signature
• Qualified electronic signature

Is a digital signature valid?

In principle, a digital signature has a legally binding character. Whether an e-signature is valid in an individual case depends on which of the three forms of electronic signature has been selected and the nature of the signed document. 

If a document needs to be certified or notarized, for example, and therefore requires personal presence, then a handwritten signature is mandatory. Tax consultants, on the other hand, rely primarily on qualified electronic signatures.

Which is the right one: simple, advanced or qualified electronic signature?

Although the three variants of the electronic signature are all considered digital signatures, they are each in a class of their own. Which version is suitable for which purpose is closely related to its use. As a tax advisor, you have a legal responsibility, so it's important to understand the intricacies. 

This much should be revealed in advance: For tax consultants, the highest security level (qualified electronic signature) is always the right choice in case of doubt.

By the way, a digital signature does not have to look like a handwritten signature. Strictly speaking, it is a collection of data that is undoubtedly linked to the natural person. Thanks to external authentication procedures, such an electronic signature is something like a (digital) official seal: more like a coat of arms than the classic signature you know.

Simple electronic signature

The simple electronic signature, e.g. in the form of a scanned signature or e-mail signature, offers you, as the name suggests, the lowest level of security. It can be provided quickly and easily, but is therefore also not suitable for all purposes, such as highly sensitive documents. 

The risk of misuse is theoretically higher with the simple electronic signature, since, for example, an e-mail signature can be created and used by anyone. External authentication does not take place. However, you can approve an internal expense report or payment order with a simple signature with a clear conscience.

Advanced electronic signature

The advanced electronic signature has more legally binding power than the simple electronic signature - its use has correspondingly more scope. It is typically used for business documents and correspondence, i.e., offers, employment contracts, and order confirmations with a medium legal risk. 

This form of digital signature must be clearly assignable to the signatory and must not be able to be changed later without being noticed. This is ensured, for example, by linking the signer and signature with a so-called verification key. 

The advanced electronic signature is already a significant further development of the simple electronic signature. Nevertheless, it does not yet meet the highest security requirements because the form of authentication is not yet sufficient for this. 

Qualified electronic signature

The qualified electronic signature (QES) is the form of digital signature that currently meets the highest security standards. It is also effective on documents that normally require a manual signature. Powers of attorney, for example, are just as effective with a qualified electronic signature as with a manual one.

For tax advisors and auditors, the qualified electronic signature is the preferred option when working for clients. After all, they work with highly sensitive information - and with the trust of their clients!

• A qualified electronic signature is issued digitally by a verified provider and linked to the signatory beyond doubt via a validation process. This can be done using the video ID procedure or the electronic ID card.
• The technical basis for this is the Secure Signature Creation Device, which provides the encryption. One of the many online providers known as trust centers helps with this and with the subsequent authentication, i.e., that your e-signature and you belong together.

The qualified electronic signature therefore goes through a number of essential steps before it is available and ready for use - but in return it is also virtually completely safe from misuse. To simplify the process for you, you can rely on software solutions that integrate the QES cleanly into existing workflows. This makes it intuitive for both employees and clients to implement and use. 

The Collaboration Suite such as IURIO offers the right digital working environment for this. It connects contact persons and clients and ensures seamless integration of the digital signature into all relevant processes and work steps. With the help of IURIO, your clients can create a qualified digital signature with just three clicks.

Your advantages: Create digital signature as a plus for contemporary tax consulting

Tax consulting is based on seriousness, accuracy and profound knowledge of tax law; therefore, the highest standards should also apply when creating the electronic signature. The advantages of a digital signature are obvious for tax consultants who perform legally sensitive activities: 

1. With a qualified electronic signature, you have the same legal security as with a manual signature.
2. They meet all legal standards - in Germany, Austria and the entire EU.
3. Switching to electronic signatures can save you up to 78.6 percent in costs, such as postage or the cost of archiving.  
4. Client appointments for mere signing can be saved for you and your team members and you can concentrate on your core business.
5. Reconciliation loops become shorter because with e-signature you only wait about 30 minutes for a response instead of up to 5 days - the working time you save can be put to good use elsewhere. 
6. You present yourself and your tax consulting firm in a modern and service-oriented way, because your clients can sign their documents from anywhere.
7. Your clients' time resources are spared, because a digital signature is faster than the classic "paperwork".

Use cases in practice: The digital signature for tax consultants

The option of creating a digital signature is worthwhile for tax consultants if you want to position yourself as a future- and service-oriented law firm. This is not merely a "nice-to-have", but a real strategic advantage - especially if you directly rely on the integration of the qualified electronic signature. Typical areas of application for QES in tax consulting are:

• Income tax returns of your clients
• Commercial tax returns of your clients
• Advance sales tax returns
• Management reports & financial statements
• Shareholders' resolutions of limited liability companies not pursuing registration in the Commercial Register

Quick & secure solution: How do I create a digital signature?

To ensure that the digital signature relieves you in your day-to-day work and is accepted by your clients, it is important that you rely on a software solution with which you can implement the qualified electronic signature as easily as possible. With IURIO, we have made it our goal to make the process as intuitive and secure as possible for you and your clients:

• If you want to obtain a qualified electronic signature from your client, place the document to be signed in IURIO in the data safe
• There your client has access to the document and can click on it
• A window opens, in which the QES can be selected by click
• The document opens and your client clicks the "Sign now" button 

The following steps depend on whether your clients already use the digital signature. IURIO has interfaces to the largest and most important trust centers in the EU and the DACH region, so your client can use their QES with confidence:

• The client now either directly selects his personal signature provider or nationality
• A selection of providers appears so that your client can choose the relevant one and click on its trust center
• Then he can simply drag the displayed signature into the document and sign it like this 

However, the case is particularly interesting if your clients do not yet have a digital signature. If you still lack the electronic signature, you can create it in a few steps within about an hour via a trust center before signing the document. Once the QES is created, your clients can use it directly on the ISO-certified high-security platform IURIO. 

Tax advisors additionally benefit from the fact that IURIO's tax advisor platform centrally bundles collaboration internally as well as with clients and unites all applications in an efficient workflow. Further advantages are:

• ISO certified high security platform
• Secure data transfer & exchange
• Fluid workflows in collaboration with employees & clients
• Integration of numerous European digital signatures
• Use of qualified electronic signatures
• ISO-compliant conversion of documents, e.g. PDF to PDF A 1b
• Collaborative work on documents

We would be happy to show you in a free demo appointment which further advantages IURIO offers you as a tax consultant and how you can smartly integrate the software solution into your workflows.

Efficient workflows & digital signature: Tax consultants & their clients win with IURIO

The digital signature is an indispensable tool for tax consultants if you want to offer your clients a competitive, future-oriented service. With the electronic signature, you can speed up processes, optimize communication with your clients, and conduct reconciliations more efficiently. 

As a secure platform solution, IURIO offers you a strategic hub with integrated digital signature for efficient collaboration within the team and with your clients. Thanks to the reliable integration of the qualified electronic signature, you rely on the highest security standards.

If you are interested in a software solution to optimize your work processes, save time and costs, we look forward to your inquiry!