Electronic Signature Process using Adobe Document Cloud eSign Services Business Model

Copyright© 2017 | Rootworks

Overview Adobe Document Cloud eSign Services (formerly known as EchoSign) is a digital document signing software that provides the ability for your clients to digitally sign documents. These documents can either be emailed to clients or placed on your website for clients to access and sign. The purpose of this document is to explain the options for utilizing Adobe Document Cloud eSign Services for obtaining signatures on engagement letters and electronic filing signature forms.

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Table of Contents Signing Up ....................................................................................................................................................... 3 Option 1: Using the Create Widget feature .................................................................................................... 4 Document Signing Process ........................................................................................................................................ 7 Accessing Signed Documents and Widgets ............................................................................................................ 11

Option 2. Sending Documents via Email to Clients ....................................................................................... 13 Engagement Letter Example ................................................................................................................................... 13 Adding Text Tags ................................................................................................................................................................................................... 13

Upload the Document ......................................................................................................................................................................................... 14

Obtaining the Client Signature ......................................................................................................................................................................... 16

Form 8879 with Knowledge Based Authentication Example ................................................................................. 19 Adding a Template ............................................................................................................................................................................................... 19 Sending the Form 8879 to the Client ............................................................................................................................................................. 22 Obtaining the Client Signature ......................................................................................................................................................................... 24

Additional Information.................................................................................................................................. 27

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Signing Up Rootworks recommends the Adobe Document Cloud eSign Services P1 product which requires a 3 year agreement at $360/year. To sign up with Adobe Document Cloud eSign Service please email Jared Shambaugh at [email protected] and let him know you are a Rootworks member. If you need Knowledge Based Authentication (KBA), which is required for electronic signatures on Form 8879, those are billed separately at $1.50/transaction. A transaction is considered a document (which can contain as many pages as necessary) that is sent to a client. If there is a taxpayer and spouse, the total KBA fee would be $3.00. It does not matter how many pages they need to sign if it is all sent together. Contact Jared Shambaugh at [email protected] to purchase these in bulks of 100.

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Option 1: Using the Create Widget feature The Create Widget feature provides a link that Rootworks can incorporate into your website. This option is best for documents that are not customized for each recipient. In other words, you are uploading a document for general use to your website; not a document that you will customize per client (with a fee or with client specific information). NOTE: If you will be customizing the document, you should use Option 2: Sending Documents via Email to Clients which is covered later in this document. Prerequisite: The document(s) for use with Adobe Document Cloud must be saved as either a Word or PDF file prior to uploading to Adobe Document Cloud. Rootworks does not recommend attempting the Adobe Document Cloud process until you have finished editing the document(s). 1. Login to Adobe Document Cloud. 2. Click Create Widget.

3. Enter a name for your Widget, (something that you will recognize in a list later) then click browse to select the document and upload your document.

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NOTE: Remember you need to upload either a Word or PDF file. 4. Select Publish this document with a dedicated URL. This option creates a link that can be added to your website. This will allow clients to click this link to access the document via your website.

The Publish this document on your site option allows the document to be embedded in your site to be signed (instead of linking to the document). Rootworks has experimented with this option and we do not recommend it at this time. 5. Ensure that Preview, position signatures or add form fields is marked. This gives you an opportunity to review the document prior to saving it.

6. Click Create.

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7. The document will be previewed on the screen for your review:

NOTE: Adobe Document Cloud will automatically add the Signature Block field to the bottom of your form. The Signature Block field contains a signature field and an email address field. 8. If you want additional information entered by clients, use the drag and drop fields, but if you are only getting a signature from a client, you do not need to use any of the drag and drop fields.

9. Click Save. 10. The URL to your document will be shown at the top of the screen. Contact your web host to discuss adding this URL to a page on your website. Rootworks members please email [email protected] for website update requests.

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11. The document itself is also previewed on the screen. You can see that Adobe Document Cloud automatically added the Signature Block box at the end.

12. Adobe Document Cloud will also email you a link to your Widget.

Document Signing Process Once the document links have been added to your website you are ready to invite clients to sign documents electronically. The steps below guide you through this process. 1. Direct your clients to the page / place on your website where the document links are located. 2. Instruct your client to click the appropriate link. 3. The document your clients see will appear very similar to the preview that was available during the widget setup (see step 7 above). NOTE: The document says who it will be emailed to at your office.

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4. The Signature box will appear at the bottom of the document.

5. The client will need to click Click to Sign. 6. As the client types their name in the Enter Your Name field, Adobe Document Cloud will create their name in cursive in the Review Your Signature field. This is the easiest signing option.

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a. As an alternative, the client can click I would like to draw my signature to use the mouse instead. This is more difficult to do.

7. Click Apply. 8. The signed name will appear.

9. An email address must be entered.

10. The final step is to click Click to eSign.

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11. Your client will get an email from Adobe Document Cloud to confirm their email address.

12. Click Confirm my email address.

13. The client will then get an email that the document is signed and filed.

a. Depending on your Adobe Document Cloud Account Settings your client may not be able to access a signed copy of the agreement from the email. To review your account settings go to Account > Account Settings > Global Settings. If the setting for Attach a PDF copy of the signed document in emails sent to is disabled, then your clients will not be able to access a signed copy of the agreement. b. Adobe Document Cloud does make it appear that the client can login and get a copy of the agreement. If they do not have an Adobe Document Cloud account, which is likely, they will be unable to log in to access the document.

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c. Rootworks Account Settings are set to Attach a PDF copy of the signed document in emails sent to No one. We do this because our agreements contain sensitive bank account and / or credit card information. If clients request a signed copy of their agreement, it is delivered after the Adobe Document Cloud process is complete.

14. Finally, the Adobe Document Cloud administrator at your firm will receive an email confirming that the document is signed. You can print the document or print it to a PDF.

Always test signing your documents yourself before sending the links to clients.

Accessing Signed Documents and Widgets This section covers the steps necessary to access signed documents and widgets in Adobe Document Cloud. 1. Log into your Adobe Document Cloud account and click the Manage tab.

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2. Signed documents are located in the Signed area. You can also filter the screen quickly using the options at the top of the screen.

a. Widgets are at the bottom of the screen. b. Click on a Widget to preview the document or click get code to get the Widget URL again. c. To delete a Widget, select it in the list and then click the Delete button.

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Option 2. Sending Documents via Email to Clients This process differs from Option 1 because it requires us to email a client the document. This option is best used when you need to send a specific document, that is customized for the client.

Engagement Letter Example In this section we will walk through the process to upload an engagement letter and email it directly to the client for signature. Before beginning this process in Adobe Document Cloud, you will need the following: •

A completed engagement letter for a client.

•

An understanding of Adobe Document Cloud Text Tags (see below).

Adding Text Tags Adobe Document Cloud allows the use of Text Tags, which are similar to variables that hold different types of data on the document. The purpose of adding the variables, or text tags, to your engagement letter template is so you do not have to manually add and position signature, date, or other data entry fields on the document each time you need to email a client. Example: Two text tags that are commonly used are signature and date. •

Signature Text tag code = {{_es_:signer:signature}}

•

Date Text tag code = {{_es_:signer:date}}

The signature area of your Engagement letter may appear similar to the signature area shown here: Agreed to and Accepted by: {{_es_:signer:signature

}}

Date: {{_es_:signer:date}}

Client owner’s name Client’s business name Agreed to and Accepted by: Insert a scanned image of your signature here ___________________________________________

Date: January 20, 2017

Your name

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Your title Your firm name

NOTE: Adding spaces inside the {{}} makes the signature box bigger as seen in the signature and date field. For a greater understanding of the capabilities of Text Tag variables, refer to Adobe Document Cloud Help document here.

Upload the Document This section covers the steps to upload your edited document to Adobe Document Cloud. 1. Log into your Adobe Document Cloud account. 2. Click Get a Document Signed.

3. Enter the email address of the recipient (your client).

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4. Before filling in the Document Name or Message, click Upload to upload your document.

5. Once the document is uploaded, Adobe Document Cloud will automatically fill in the Document Name and Message fields. Feel free to customize the Message text. This text will appear in the email the client receives. 6. Rootworks recommends selecting Preview, position signatures or add form fields. This gives you an additional opportunity to make sure you have uploaded the right document and that it looks correct before sending it to the client.

7. Click Next. The document will be processed and then displayed for you to preview. 8. Review the engagement letter as you normally would. 9. Scroll to the signature area to see how Adobe Document Cloud has translated the Text Tag variables into a signature box and a date box.

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10. Click Send to email the engagement letter.

Obtaining the Client Signature You will receive an email that the document has been sent for signature. Your client will receive an email with a link in it to sign the agreement. The client’s email will look like this. The client would follow the steps below.

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1. Click the Click here to review and eSign… link. 2. The document will open in a new window. 3. At the bottom of the document is the signature area as shown here:

4. Click the Click to Sign button (which was generated based on the text tag code). V17120 | Copyright© 2017 Rootworks | 17

5. Type your name and Adobe Document Cloud will translate that to a signature.

6. Click Apply. The signature will be completed and the date is already pre-filled (again, this is a result of using the text tag on the document originally).

7. At the bottom, click Click to eSign.

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8. The client will see the following message:

9. At this point, both the client and you will receive an email message that the document is Signed and Filed!

Form 8879 with Knowledge Based Authentication Example In this section we will walk through the process to create a template for Form 8879 signatures, select the knowledge based authentication option, and email it directly to the client for signature. Before beginning this process in Adobe Document Cloud, you will need a blank Form 8879 in PDF format and any state signature forms if your state requires one.

Adding a Template Adobe Document Cloud allows the use of template forms to allow for easy positioning of signature boxes on forms, streamlining the signature process. Follow the steps below to create a template. 1. Click Add Template to Library.

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2. Enter a Template Name and select your blank 8879 document. 3. Select Create as reusable form field layer. 4. If you have a single-user license you can choose Grant Permissions of Only to me. If you have more than one users, select one of the other options.

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5. Click Preview or Add Fields. 6. With Participant 1 selected in the Select Participant field (A), drag the Signature (B) to the Taxpayer’s signature line (C).

7. Select Participant 2 from the Select Participant dropdown. Drag the Signature to the Spouse’s signature line. 8. Click Save. 9. Your template is now saved. If you need to edit your template after saving you can find it under Manage > Library Templates.

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Sending the Form 8879 to the Client This section covers the steps to send the client their Form 8879 for signature. 1. Click Get a Document Signed. 2. Enter the email address of the recipient (your client). If it is a married filing joint return, enter the taxpayer’s email first and the spouse’s email second. (You can use the same email addresses if necessary.) 3. Be sure to select Any Order in the Recipients sign in field. This will allow the taxpayer and spouse to sign in any order instead of making the taxpayer sign before the spouse can sign. If you are using the same email address for both taxpayer and spouse it is recommended that you select Order Entered so that once the taxpayer signs then another email will be sent for the spouse to sign. This way the client is not confused on which email is for the taxpayer’s signature and which is for the spouse’s signature.

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4. Before filling in the Document Name or Message, click Upload to upload your document. You will need to create a PDF of the signature documents that you are sending to the client.

5. Once the document is uploaded, Adobe Document Cloud will automatically fill in the Document Name and Message fields. Feel free to customize the Message text. This text will appear in the email the client receives. 6. Select Knowledge based authentication in the Identity Verification section.

7. Select Preview, position signatures or add form fields. This will allow you to apply the 8879 Template created previously.

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8. Click Next. The document will be processed and then displayed for you to preview.

9. Click the Apply form field layer template to document icon

.

10. Select your 8879 template from the Select Form Field Template drop-down list. Click Apply.

11. Review form 8879 and notice the signature fields are added to the appropriate places. If necessary add any additional signature fields, i.e. state signature forms are included in the PDF that you are sending to the client. 12. Click Send to email Form 8879.

Obtaining the Client Signature You will receive an email that the document has been sent for signature. Your client will receive an email with a link in it to sign the agreement. The client’s email will look like this:

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The client will follow these instructions to sign their form(s). 1. Click the Click here to review and sign… link. 2. Enter name, address, and last 4 digits of SSN (optional).

3. Check the agree box, and click OK. 4. Answer the questions. They have to successfully answer 3 out of the 4 questions to pass the knowledge based authentication process. 5. Click the Click to Sign button.

6. Type your name and Adobe Document Cloud will translate that to a signature.

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7. Click Apply. The signature will be completed.

8. At the bottom, click Click to eSign. 9. At this point, both the client and you will receive an email message that the document is Signed and Filed! a. If it is a married filing joint client and only one spouse has signed the document, the client will see this message. Otherwise, it will tell them they have successfully signed the agreement.

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Additional Information •

Add your logo to the emails generated from Adobe Document Cloud by going to Account > Account Settings > Email Settings.

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In your Adobe Document Cloud account, all signed agreements are available on your Manage tab.

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All agreements that have been emailed but not yet signed by clients are classified as Out For Signature.

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You may print documents to PDF and then store in your document management system if you like.

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You can also link various social media applications to Adobe Document Cloud (Facebook, Linked In, etc). Rootworks has not experimented with those options.

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Form 8879 E-Signatures additional information o Documents are not set to expire automatically, but you can enable that feature in Adobe Document Cloud by going to Account > Account Settings > Send Settings > Document Expiration. o If a client fails the knowledge based authentication questions, you will have to resend the document.

•

For more information please visit the Adobe Document Cloud website at www.echosign.com. If you have any detailed Adobe Document Cloud related support questions, please direct them to Adobe Document Cloud Support.

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