As your company grows, it is also a given that the number of your contracts will also increase. A proper contract management system will help your company become better.
Having a manual and outdated contract management system slows down your company processes and functions. What you want for your company is an efficient system of transactions that will continually grow. This can only be done when you do not waste your limited resources on inefficient and wasteful aspects. In simple terms, it greases your company’s cogs so that it performs properly.
In the world of business, attaining a high level of efficiency is the goal. The idea is to use as little resources as possible while optimizing everyone’s potential. Minimizing the costs and expenses of the business is obviously important to the business.
With a Contract Management Software, you can identify problems your company might be facing or will face in the future. It is also possible to detect the inefficiencies of your company. Maybe you see that you have many redundant employees or that their job functions are overlapping. This can easily be fixed when you already know what the specific problem is.
If you are not yet convinced, here are more reasons as to why you should get a Contract Management Software
Here are the risks of not having a Contract Management Software:
1. Human error
Humans are not infallible. All of us are prone to human error. A single typo can change the entire meaning of a contract and can bring irreparable damage to your company. Another mistake that often happens with staff managing your contracts is the tendency to forget important dates and deadlines.
Contracts need to be renewed regularly. The software can be programmed with all the important dates for your contracts. This means that there is no way that you see lapsed contracts again.
2. Wasting Time
One problem with contract drafting is that you waste countless hours just writing the same contract again and again. This is obviously a wasteful endeavor that you can avoid by having a Contract Management Software. You can easily create contract templates for your numerous clients and prospects.
3. Lose 9% of your Annual Revenue
Studies have shown that companies with poor contract management system lose over 9% of their annual revenue due to inefficiency and jeopardized customer relations. It doesn’t take a room of geniuses to know that 9% is a lot of lost revenue. These resources can further be used for growth instead of thrown in the trash.
On the other hand, here are the Benefits of having an Automated Contract Solution:
If there’s anything that a Contract Management Software does, it is to improve the efficiency of your company and its processes. With a full visual of everything that happens, you can fix any redundancies and overlapping transactions to make your life easier and optimize everyone’s times.
2. Tracking Capabilities
A Contract Management Software can track all your contacts data: important dates agreed upon terms, KPIs, etc. This means that all contact information will be visible to you.
You can also automate all reminders for contract deadlines and renewals so as not to have expired/lapsed contracts. There are a lot of problems that come with contracts that have gone expired without you knowing. Avoid this with a Contract Management Software. You can also identify the problems each contract faces so that it can be addressed properly.
Go paperless with your contracts and have them be signed online. This is obviously better as you can easily reach out to overseas clients without having to send in any hard copies to be signed. With just a few clicks, you can have your contracts signed with minimal effort. No need to worry as eSignatures are considered as legally binding.
At the end of the day, a Contract Management Software will drive your revenue up while also mitigating the risks that you take.