Contracts are an inevitable part of doing business, even for start-ups.
In the course of forging business partnerships, businesses will get into contractual agreements with individuals and other business entities, for various reasons. The popularity of contracts has further escalated due to the need to enhance transparency in business dealings, to ensure each party understands their responsibilities, among other things.
For most of these businesses, especially established companies, having more than a handful of active contracts is not an uncommon scenario. Moreover, these companies can even have thousands of these contracts operating simultaneously.
Between keeping tabs on the progress of each contract and ensuring each party is holding their end of the bargain, managing contracts can be hectic, but not if your company uses contract management software.
As its name suggests, contract management software allows businesses to keep track of their contractual agreements through all their lifecycles. They are also instrumental in ensuring the company remains compliant with the stipulated laws and regulations in regards to the partnership and its business dealings. Simply put, contract management software is an essential tool in the success of any organization.
But that’s only the tip of the iceberg…
Here are other reasons why your company needs contract management software.
Let’s dig into the details.
- It Offers A Single Repository For All Your Contracts
Having your staff running up and down looking for contracts before a stakeholder’s meeting or when the auditors show up portrays the company in a bad light. But, unfortunately, it also shows the company’s disorganization.
Be it ten or a hundred agreements, contract management software provides a single platform where you can store your contracts safely. So, instead of going through tens of drawers to find a specific contract, you can easily log onto your contract management application, key in the name of the agreement in the search button and voila! You have your contract in seconds.
- It Reduces Redundancy
Human is to error: this is a common saying that holds truth.
Manually writing and managing contracts can be challenging. In addition, delegating agreements to many people leaves them susceptible to repetition and duplication.
However, when you employ contract management software, you will only employ a few people to handle them. These should be skilled professionals. Furthermore, contract management software has automation features that you can leverage to automate processes and manage redundant tasks, improving the company’s efficiency.
- It Keeps Track of Important Dates
Keeping track of important dates can be challenging, especially with the dozens of personal and business tasks we need to do every day.
In a contract, the expiry date is as essential as the commencement date, if not more. If you need to review the success of your partnership, keeping tabs on the day when the agreement expires is essential. By using the reminder feature on a contract management application, you can set reminders that will alert you when the contract is approaching its expiration date
That way, you can minimize unwanted costs that may result from partnerships with underperformed parties. You can also start making arrangements for a renewal of the contract in instances where the partnership was fruitful.
Note that you can also set reminders on other important dates in relation to the contract, such as when certain milestones are due, board meetings, and many more.
- Eases the Contract Authoring Process
Authoring contracts can be challenging and tiresome. So why would any business then stick to the conventional way of manually drafting hundreds of contracts when there is an easier way of doing things?
Contract management software offers solutions that allow companies to create custom templates that they can use for several similar contracts. Instead of drafting each new agreement, using templates that have been pre-approved by the company helps reduce redundancy and increase efficiency.
- Allow for Better Document Management
Knowing all the business contracts by name, especially when they are more than a couple of them, is nearly impossible. It is also common to forget the exact project’s name, among other things.
With contract management software, finding all the documents tied to a specific contract is easy and fast. In addition, you can leverage the advanced search feature to search for numbers and other unique variables.
Since contract management applications use artificial intelligence, all document formats are searchable. So, for example, you can input figures or texts, and the application will conduct an in-depth search, providing the results almost instantly.
A Contract Management Software is What Your Business Needs;
From the factors listed above, it’s clear that contract management software is vital if you are looking to forge a successful business partnership.
Compared to the traditional ways of manually handling all business agreements, contract management software is undeniably more efficient, effective, and productive. It allows businesses to do more for less, giving you enough reasons to invest in one.
