Is an electronic signature valid?

Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided the signature meets intent, consent, attribution, and record-retention requirements.

Do I need to notarize the authorization?

Not generally required for internal corporate authority, but banks, title companies, or counterparties may request notarization or a certified copy of minutes; confirm the recipient’s requirements in advance.

Who can sign the document on behalf of the company?

Typically the corporate secretary, board chair, or an officer named in the bylaws prepares and signs the authorization; identify the approving corporate action to show authority.

How do I revoke or change the authorization?

Create a written revocation signed by authorized officers, distribute it to affected third parties, and update internal records; include an effective date for the revocation to avoid confusion.

What if a bank refuses to accept the form?

Ask the bank which additional evidence they require (notarized resolution, certified minutes, bank-specific affidavit) and provide exactly that documentation to avoid further delays.

How long should I keep the executed document?

Retain the executed authorization and audit trail for the term plus several years; follow IRS guidance (3 years) and industry-specific rules such as HIPAA (6 years) when applicable.

Business DSO Document

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BUSINESS DSO DOCUMENT

This Business DSO Document (the "Agreement") is entered into as of Effective Date: by and between Client Name: ("Client") and Provider Name: ("Provider"). The Client and Provider are each a "Party" and together the "Parties."

Recitals

WHEREAS, Client maintains accounts receivable and seeks to reduce Days Sales Outstanding ("DSO") and improve cash collection and receivables management; and

WHEREAS, Provider provides accounts receivable management, collection, billing optimization, and advisory services designed to reduce DSO and improve collections; and

WHEREAS, the Parties desire to set forth the terms under which Provider will perform DSO services for Client and the compensation and confidentiality obligations associated with such services.

Contact and Notice Information

Client Address Provider Address

Scope of Work

Provider shall perform accounts receivable management services including, but not limited to, analysis of aged receivables, billing and invoicing process recommendations, direct collection efforts, dispute resolution assistance, customer communications, and reporting necessary to reduce Client's DSO and improve cash collection ("Services"). Specific performance targets, deliverables, and exclusions are set forth below and shall be subject to the terms of this Agreement.

Detailed Scope (describe in detail)

Payment Terms

As consideration for the Services, Client shall pay Provider in accordance with the terms set forth in this section. Provider's fees are exclusive of taxes and reimbursements unless otherwise specified.

Fee Amount (per month or project) Payment Schedule and Method

Invoices will be issued by Provider in accordance with the Payment Schedule. Unless otherwise agreed, Client shall pay each undisputed invoice within days of receipt. Overdue amounts shall bear interest at the lower of 1.5% per month or the maximum rate permitted by law and Client shall reimburse Provider for reasonable collection costs incurred to collect overdue amounts.

Late Fee Percentage

Term and Termination

This Agreement shall commence on Start Date: and continue until End Date: unless earlier terminated in accordance with this section.

Either Party may terminate this Agreement for convenience upon prior written notice to the other Party delivered at least days prior to the effective date of termination. Either Party may terminate for material breach if the breach is not cured within thirty (30) days after written notice. Termination does not relieve Client of payment obligations for Services performed through the effective date of termination.

Confidentiality

Each Party (the "Recipient") shall maintain in confidence all non-public information disclosed by the other Party (the "Discloser") that is marked confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure ("Confidential Information"). Recipient shall not use Confidential Information for any purpose other than performing its obligations under this Agreement and shall protect Confidential Information using at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care.

Confidential Information does not include information that: (a) is or becomes publicly known through no breach of this Agreement; (b) is lawfully received from a third party without restriction; (c) is independently developed without use of the Discloser's Confidential Information; or (d) is required to be disclosed by law, provided the Recipient gives prompt notice to the Discloser and cooperates in any lawful effort to limit such disclosure.

Data Security and Compliance

Provider shall implement and maintain administrative, technical, and physical safeguards reasonably designed to protect the confidentiality, integrity, and availability of Client data processed in the performance of the Services. Provider will notify Client of any unauthorized access to Client data promptly and will cooperate in remedial measures. Provider's obligations under this section survive termination of this Agreement.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in that State for disputes arising under this Agreement.

Representations; Limitation of Liability

Each Party represents that it has the power and authority to enter into this Agreement. Provider will perform Services in a professional and workmanlike manner consistent with industry standards. EXCEPT FOR A PARTY'S WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES. PROVIDER'S AGGREGATE LIABILITY FOR DIRECT DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE SUM OF FEES PAID BY CLIENT TO PROVIDER IN THE SIX (6) MONTHS PRECEDING THE CLAIM.

Entire Agreement; Amendments

This Agreement, including any exhibits or attachments signed by the Parties, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals, and communications. No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties.

Miscellaneous Provisions

If any provision of this Agreement is found invalid or unenforceable, the remaining provisions will remain in full force and effect. Neither Party may assign this Agreement without the prior written consent of the other Party, except that Provider may assign to an affiliate or in connection with a merger or sale of substantially all of its assets.

Additional Provisions / Notes

Client Printed Name:

By:

Date:

Provider Printed Name:

By:

Date:

What the Business DSO Document Is and When It’s Used

A Business DSO Document is a formal corporate authorization that designates one or more individuals to sign contracts, banking instruments, government filings, and other binding documents on behalf of an organization. It typically records the authorized party’s name, title, scope of authority, limits, effective date, and any board or member resolution approving the designation. While internal in nature, the document is relied on by banks, vendors, and counterparties to verify authority; electronic execution is generally permissible under ESIGN (15 U.S.C. ch. 96) and state UETA statutes where applicable.

Why a Clear Signing Authorization Matters

A precise DSO Document reduces disputes over authority, speeds contract execution, and creates a verifiable record for banks and counterparties while helping meet internal control and audit requirements under corporate governance rules.

Who Typically Prepares and Relies on This Authorization

Several stakeholders prepare, sign, or accept a DSO Document depending on company structure and transaction context.

Corporate secretary or general counsel: Prepares resolution language and attaches board approval for corporate entities.
Banks and lenders: Review the authorization to confirm signature authority on account and loan documents.
Vendors and counterparties: Use the document to accept contract signatures and reduce demands for additional corporate evidence.

Keep signatory roles and limits clear so external parties can accept the document without additional verification steps.

Typical Signers and Their Roles

Authorized Signer — CFO

A chief financial officer designated as an authorized signer routinely handles financial instruments, settlement documents, and contract sign-off. The DSO Document should specify monetary limits, whether they can bind the company for loans, and any co-signing requirements. The authorization helps banks accept signatures without separate board confirmations.

Owner / Member — LLC

A managing member or designated officer in an LLC may be granted exclusive or limited authority to sign contracts and accept payments. The DSO Document should indicate whether the authority is exclusive, time-limited, or subject to member approval for specific transaction types to avoid internal disputes.

Essential Components to Include in a Professional DSO Document

A complete DSO Document is concise but specific; include identity, scope, limits, evidence of authorization, effective period, and revocation language so external parties can rely on it.

Identity

Full legal name and official title of each designee, matching government ID and corporate records to prevent ambiguity when banks or third parties verify authority.

Scope

Explicit description of the kinds of documents and transactions the signer may execute, such as contracts, checks, loan documents, or regulatory filings.

Monetary Limits

Any per-transaction or aggregate dollar limits for which the signer can bind the business without further approval.

Approval Evidence

Reference to the board resolution, meeting minutes, or member consent that approved the designation, and the date of that corporate action.

Effective Term

Start date, expiration date (if any), and conditions that trigger automatic termination, such as resignation or removal of the signer.

Revocation Clause

Procedure for revoking the authorization, including notice provisions and the effective date of revocation for third-party reliance.

Step-by-Step: Completing and Delivering the DSO Document

A straightforward sequence helps ensure the document is valid and accepted by third parties; follow these four steps in order.

01

Draft: Prepare resolution language and scope of authority, citing the approving corporate action.
02

Approve: Obtain required board or member approval and record minutes or written consent.
03

Execute: Have authorized officers sign and date; notarize if requested by the recipient.
04

Deliver: Provide the document to banks or counterparties and retain a secure copy following retention rules.

Where to Send the Signed Authorization and Typical Recipients

Knowing who accepts the DSO Document reduces back-and-forth and speeds onboarding; use certified or tracked delivery for critical recipients.

Banking Institutions: Provide to your bank or lender to update signature cards and authorize account signers.
Major Vendors: Send to vendors with templated contract workflows to accept electronic signatures and reduce purchase friction.
Internal Records: File the signed document with corporate minutes, secretary’s records, or the company binder for audits.
Legal Counsel: Share with counsel for confirmation that the language complies with state corporate law.

Configure an Electronic Workflow for the DSO Document

Set up a repeatable e-sign workflow so each authorization follows consistent authentication, routing, and retention steps.

Field	Configuration
Signature Method	eSign with audit trail and timestamp
Authentication	Email link plus SMS code for signer verification
Routing Order	Corporate secretary → authorized signer → legal reviewer
Retention Policy	Retain signed PDF and audit log for records retention

Digital Signing and File Format Considerations

Use an eSignature platform that supports secure PDFs, audit trails, and the integrations you need to deliver the DSO Document.

File Formats: PDF and DOCX supported
Integrations: CRM and cloud storage connectivity
Authentication: Email, SMS, or KBA options

Timing and Typical Deadlines to Track

Track effective dates, bank processing windows, and internal review deadlines so the authorization is in force when needed.

Effective Date:

Date authority begins; use MM/DD/YYYY

Board Approval Date:

Date minutes or resolution were adopted

Bank Processing Time:

Often 3–10 business days to update accounts

Vendor Onboarding:

Varies; plan for 1–2 weeks for verification

Retention Start:

Retention begins on execution date

Risks and Legal Consequences of Improper Authorization

Invalid Authority: Counterparty may refuse acceptance

Unauthorized Liability: Company may not be bound

Bank Rejection: Account changes delayed

Regulatory Scrutiny: Governance compliance issues

Fraud Exposure: Increased risk without controls

Operational Delay: Transactions may be paused

Real-World Examples of How Organizations Use a DSO Document

These short examples illustrate common scenarios where a Business DSO Document streamlines operations and reduces verification time.

Case Study 1

A midsize retailer needed a regional manager to sign lease amendments

The company issued a time-limited DSO with $100,000 per-transaction cap
The landlord accepted the authorization quickly, avoiding repeated board confirmations and shortening the lease negotiation by two weeks.

Case Study 2

A healthcare clinic authorized an office manager to sign vendor contracts

The DSO specified no access to patient records and required legal review for >$25,000 commitments
Vendors accepted the document after notarization, speeding procurement while preserving HIPAA protections.

Practical Tips to Reduce Risk and Speed Acceptance

Adopt a few consistent practices to make the DSO Document reliable, auditable, and acceptable to third parties.

Use Clear, Specific Language

Avoid vague terms; list permitted transaction types and exact monetary thresholds so third parties can rely on the document without extra confirmation.

Attach Evidence of Approval

Include a copy of the board resolution or meeting minutes that authorized the designee to reduce third-party requests for further proof.

Include Specimen Signatures

Provide printed and signed specimen signatures and title blocks to assist banks and vendors with verification processes.

Maintain Central Records

Store the executed document with corporate minutes and an audit trail; keep a secure, retrievable copy for the retention period.

Typical eSignature Pricing and Feature Comparison for Executing the DSO Document

Compare common eSignature options for signing and managing a DSO Document; signNow is listed first per platform data and pricing.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Common Errors That Slow Acceptance

Using informal titles or abbreviations that do not match formation documents causes identity verification delays and additional documentation requests.
Omitting the approving corporate resolution or minutes forces banks and counterparties to request certified copies or legal opinions.
Failing to specify monetary limits can lead to overbroad authority that third parties will not accept without further approvals.
Delivering a scanned signature image without an audit trail may be rejected by institutions that require verifiable signing metadata.

Frequently Asked Questions About the Business DSO Document

Answers to common practical and legal questions about preparing, signing, and relying on a DSO Document in the United States.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted, provided the signature meets intent, consent, attribution, and record-retention requirements.
Do I need to notarize the authorization?
Not generally required for internal corporate authority, but banks, title companies, or counterparties may request notarization or a certified copy of minutes; confirm the recipient’s requirements in advance.
Who can sign the document on behalf of the company?
Typically the corporate secretary, board chair, or an officer named in the bylaws prepares and signs the authorization; identify the approving corporate action to show authority.
How do I revoke or change the authorization?
Create a written revocation signed by authorized officers, distribute it to affected third parties, and update internal records; include an effective date for the revocation to avoid confusion.
What if a bank refuses to accept the form?
Ask the bank which additional evidence they require (notarized resolution, certified minutes, bank-specific affidavit) and provide exactly that documentation to avoid further delays.
How long should I keep the executed document?
Retain the executed authorization and audit trail for the term plus several years; follow IRS guidance (3 years) and industry-specific rules such as HIPAA (6 years) when applicable.

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