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eSignature Overview in Karbon

Securely request, track, and collect legally binding eSignatures directly within Karbon.

Erin Jamison avatar
Written by Erin Jamison
Updated over a week ago

Karbon’s eSignature functionality transforms the way you manage documents, providing a secure and efficient method for requesting and collecting electronic signatures. It is designed to integrate seamlessly into your workflow, ensuring compliance, speed, and simplicity.

Features of eSignatures in Karbon:

  1. Simple Setup: Add signature fields, initials, and date placeholders directly to documents within Karbon.

  2. Multiple Signers: Assign signature roles to multiple recipients in the same document.

  3. Customizable Notifications: Automatically remind clients to sign pending documents, reducing delays.

  4. Real-Time Tracking: Monitor document status, from sent to sign, directly in Karbon.

  5. Secure and Compliant: Legally binding eSignatures with encryption and audit trails ensure regulatory compliance.

  6. KBA Support for IRS Compliance: Optionally enable Knowledge Based Authentication (KBA) to verify U.S.-based signers before they can access and sign sensitive IRS forms like 8878 and 8879.

How It Works

  1. Create an eSignature Request:

    • Navigate to a work item and select “Add Task.”

    • Choose “eSignature Request” from the dropdown.

  2. Prepare Documents for Signing:

    • Upload files (PDF or DOCX) or drag and drop them into the eSignature request.

    • Customize the package name for easy identification by recipients.

  3. Choose Recipients and Roles:

    • Select individuals from your Karbon contacts.

    • Assign roles (e.g., signatories or CC recipients).

  4. Add Placeholders for Signatures:

    • Drag and drop placeholders for signatures, initials, dates, or checkboxes into the document.

    • Assign placeholders to specific recipients.

    • By default, placeholders other than signatures (such as initials, dates, and checkboxes) are not required.

    • To mark a placeholder as required:

      1. Click on the placeholder.

      2. Select Properties.

      3. Under Settings, check the Required box.

  5. Send the Request:

    • Customize the email message or use the default template.

    • Click “Send” to deliver the eSignature package.

Using Knowledge Based Authentication (KBA)

Karbon supports Knowledge Based Authentication (KBA) for eSignature packages sent to U.S.-based clients. KBA is required for collecting IRS-compliant eSignatures on forms like 8878 and 8879.

  • KBA must be enabled in your firm’s Settings > eSignature and Approvals by an Administrator.

  • Once enabled, you can turn on KBA for specific U.S.-based recipients during eSignature setup.

  • Clients will need to answer identity verification questions about their financial history before signing.

  • KBA costs 3 additional eSignature credits per recipient.

Best Practices for eSignatures:

  • Clearly define signature locations for clients to avoid confusion.

  • Use automatic reminders for time-sensitive documents.

  • Combine eSignatures with document templates to save time on repetitive tasks.

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