8 Benefits of Contract Management Software
Table of Contents:
- What are the benefits of contract management software?
- Getting started with the best contract management software
- Frequently asked questions about contract management software
If you're like many business owners and executives, the very idea of a contract management system is enough to make your eyes glaze over. Sure, you know it's important to have contract management software in place for managing your contract lifecycle, but you'd prefer not to think about it.
But here's the thing: sticking to a manual contract management method and hoping for the best isn't going to help you or your company in the long run. Contract management is an important aspect of business and you should treat it as such.
There are two primary purposes of contract management. The first purpose is to reduce the risk of being sued for the non-fulfillment of a contractual agreement. The second purpose is that it helps to reduce the costs and risks associated with a legal battle in case one arises due to the lack of fulfillment of an aforementioned contractual agreement.
You are probably familiar with the bottlenecks of manually monitoring many contracts simultaneously to maximize operational and financial performance.
So here’s an opportunity to eliminate all contract bottlenecks. Read on to learn the benefits of a contract management system and how you can get started with one.
What are the benefits of contract management software?
When companies experience growth and increase in size, it is usually impossible to achieve contract goals through manual management. At this point, the wise thing to do is to decide on a contract lifecycle management software to employ.
Businesses that invest in an effective contract management system will mark improvements in their operations. The benefits are numerous and below, we would mention some of the most notable ones.
1. Faster business operations and decision making
Anyone who has prepared a contract must be familiar with the tediousness that characterizes the process. And it gets considerably worse when you have to manage multiple contracts every day. However, using contract management software like Contractbook makes the process much easier.
Contractbook lets you use templates and a few clicks to set up a contract. This digital process also allows collaboration among teams and individuals across the organization. Digital signatures and negotiation processes are other features that ensure faster operation and hence, faster decision-making.
2. Easier collaboration and file sharing across the board
Contracts usually require inputs from different departments, which means the contract may suffer without adequate collaborative operations. The sales team may need the legal team to check legal conditions or the procurement may want to collaborate with marketing. This is time-consuming.
Meanwhile, contract management software makes it easier for people from different departments to work together on contracts. Stakeholders can review and approve changes, regardless of where they live, without having to worry about document version control or the risk of working with an outdated copy.
3. Improved document management
Users can manage documents better with contract management software. There’s no need to waste valuable time searching through file cabinets or email inboxes looking for a specific contract. A contract management platform may also integrate with other types of software, such as customer relationship management platforms. This can help to streamline business processes and allow users to access all relevant information from a central repository.
4. Improved compliance
When it comes to contracts, compliance is of the utmost importance. After all, if a contract isn't compliant with regulations, then it could potentially be null if challenged in court.
With manual processes, it's relatively easy for things to fall through the cracks during the drafting and signing stages. If an important clause is inadvertently left out or mislabeled, then there's no way for anyone to know about it until a legal issue arises down the line.
Hence, contract management platforms ensure compliance by:
- Tracking and reporting key dates, both for upcoming deadlines and past performance.
- Storing all contract information in one place to keep it from getting lost or misplaced.
- Providing a single, central system to ensure consistency in contract language and approval.
5. Increased productivity and customer services
A manual contract management system requires an enormous amount of person-hours. Your staff must spend time searching for files, tracking down missing documents, updating and managing spreadsheets, manually entering data into the system, and redoing tasks because of errors. All this takes away from the time they could use to perform other high-value tasks.
Meanwhile, contract management software automates most manual tasks performed by your staff. It provides a central repository where all your contracts are stored and accessed electronically – eliminating the need to hunt down missing files or manually prepare reports. It automatically notifies you before an important deadline so nothing falls through the cracks. Also, it can automatically generate reports for you at regular intervals, and it provides simple workflows that make it easy to keep everyone on task.
6. Improved contract visibility
When you store your contracts in one place, authorized employees have greater visibility into what agreements are in place and how they're performing. Approaching a contract's expiration date is an opportunity to renegotiate or re-evaluate the agreement. Another benefit of improved contract visibility is that it increases accountability. If everyone can see who has access to contract information, it's easier to keep track of who is responsible for the overall health of each agreement.
7. More secure file storage and backup
Contracts are important documents with sensitive information. Keeping the data in contracts safe with manual storage facilities is usually not completely possible. Meanwhile, contract management tools use high-end encryption features and passwords to keep files safe.
It is the same thing with backing up. Physical contracts can go missing or get destroyed by water, fire, and other elements. By saving files in the cloud, management software is able to ensure safe backup to eliminate the risks of damage and loss.
8. Scalable operations
Businesses always want to grow and sometimes growth can happen when you're not expecting them. Therefore, a scalable solution will be required for keeping things on track. When an organization's customer base increases, the contract needs also go up. This creates a bottleneck for organizations but with the right contract software, they can adjust to the newer demands easily.
Getting started with the best contract management software
Contracts are important for businesses, and handling them properly is crucial to achieving productivity. A business official who uses contract management software can create contracts and collaborate with others to achieve contract objectives.
As far as contract management solutions are concerned, Contractbook is an industry leader. From small to large, many businesses have utilized our outstanding technology to get the results they want. The competent technology from Contractbook is affordable for all businesses.
Ultimately, Contractbook’s contract management software consists of products that let you manage contract overview from a streamlined contract repository. It also lets you collaborate through the collaborate feature, which involves reviews, negotiations, and approval. The automate product is built to automate workflows for self-serving contracts.
Frequently asked questions about contract management software
What is contract management software?
Contract management software (CMS) is a digital package through which a company handles its contract processes. It integrates with existing systems, automates the entire contract lifecycle, and improves contractual relationships.
Recently, contract management systems use computer programs, instructions, and data to digitalize the contract management platform. Eventually, it leads to a more efficient and streamlined contract process.
What is the purpose of a contract management software?
Companies can use contract software to create, review, negotiate, approve, sign, and track contracts. It replaces the old and ineffective manual management system that has seen businesses lose profits. This is particularly beneficial to huge corporations handling large contract volumes.
That’s not all. CMS allows departments to self-serve contracts without significant input from the in-house legal team.
When should you consider implementing a contract management platform?
Contrary to what you may be thinking, there's no wrong time to get started with a contract management platform. To stay afloat in the ever-changing organizational environment, you need a contract management solution to manage your contract operations from one central place.
As your business grows, so does the number of contracts you have to deal with. As contracts become more complex and require more detailed regulatory compliance, manual handling of these documents becomes impossible. A contract management solution will help you streamline your contract workflow and unify all your contract operations in one central system.
It also comes in handy when dealing with multiple partners and stakeholders, who often work remotely or from different locations across the world.