What is Contract Management Software?

No matter what type of business you are running, you probably use contracts in at least some parts of your operations. With this in mind, are you currently using a contract management software system? No matter the size, industry or region you are working in, if you’re still managing contracts with tools like spreadsheets and e-mails, you’re putting yourself at a disadvantage. Here’s why:

What Will Contract Management Software Help Me Achieve

  • Spreadsheets or e-mail don’t contain advanced search functionality so searching for information can be time-consuming for your staff
  • Your staff will have to reactively deal with problems, causing them to stray from their primary duties. This could result in them falling behind with their workload
  • Duplication can occur because several departments may feel the need to input data as a result of not collaborating properly or assigning work to relevant people
  • Staff resources are taken up on tasks such as entering and managing information. Due to the lack of automation, contracts need to be written from scratch every single time
  • Individual departments may be carrying out tasks they aren’t qualified to do. For example, a finance team may find themselves editing clauses or text. Something which only the legal team should be doing
  • Urgent tasks can be missed because people are unaware of deadlines. Contracts may auto-renew on terms that are outdated and opportunities for further business may be missed

Continue reading to find out why you need to replace these antiquated systems with an up-to-date contract management platform.

Why Use Contract Management Software Today

If you are a small business and don’t manage many contracts, you might think that you won’t benefit from upgrading to contract management software. The reality is that companies of all sizes can benefit. This is because contract management software is packed with loads of features that can help you and your business. The main ones include:

Quicker and Easier Access to Data

Staff can focus on their usual duties because they don’t need to spend time searching for data. Instead, information can be accessed quickly from one central location whenever it is required. Features such as metadata and master data enable extended functionality such as reviewing of trends, analysis and risk discovery. Staff will no longer have to be reactive to problems. Instead, they can take a proactive approach, allowing them to manage relationships and guarantee better business outcomes effectively.

Centralized and Automated Data

With manual contract management, data can be prone to duplication. Additionally, as more staff need to contribute, the system can become inefficient and more work is completed than necessary than that of an automated system. A centralized system works by assigning tasks or responsibilities to those best suited to them within the business. Therefore, legal teams aren’t adjusting figures or making financial decisions, and the finance department isn’t left making changes to legal text.

Lengthy or Repetitive Tasks are Eliminated

Many businesses generate contracts that often use the same generic legal language or terms and conditions repeatedly. If you’re not using contract management software, you’ll waste a lot of time doing this. By using contract management software, generating contracts becomes much quicker because templates and pre-approved clauses can be quickly added. This means that in most cases, contracts virtually write themselves. Time wasting tasks such as having to re-enter data or searching for information are eliminated.

Sales People Recognized as Important in the Process

The information provided for contracts from salespeople is often highly valuable. Yet, issues can occur from this, causing the sales cycle to slow down. With a contract management system, salespeople are free to enter data into the system, without disrupting anyone else’s workflow. In one centralized place, members of staff can be assigned to specific tasks relevant to their job roles, and they are reminded to do so through notifications and alerts. So, everyone on the project is kept updated, but the staff is only completing actions when they need to.

Auto-Renew Issues Eliminated

There are many disadvantages to simply leaving a contract to auto-renew. As well as costing money, it can cause unfavorable terms, problems with payments and even missed chances to renew business with lucrative and high paying clients. Use a contract management system to set notifications and alerts based on your own dates, rules, and information. Problems like missing deadlines and lost opportunities become a thing of the past.

What Can Contract Management Software Help You Do?

If you’re still using manual contract management processes, we recommend making the switch to contract management software as soon as you can. Especially if you want to:

  • Streamline your processes regardless of your businesses size
  • Enable your staff to do what they do best by providing a centrally accessible location where all contract information can be accessed quickly
  • Provide an automated system for your team which cuts down duplication and frees up your members to do more important duties
  • Save time within your company with pre-approved clauses and templates for generating contracts
  • Remind staff to complete critical tasks through the use of notifications and help them save time by eliminating unnecessary duties that other team members should complete
  • Retain your best and highest paying clients on favorable terms by being notified before auto-renewal takes place