Much has been said and written on how a Contract Management Software can help improve your business. Contract Management Software is a program integrated into a company’s overall management systems to document and manage legal agreements. This includes contracts with vendors, existing leases, and licensing agreements.
It improves the overall office efficiency, collects important data and provides valuable insights on performance, etc. These are just some of the important benefits that a Contract Management Software brings to the table. Perhaps, however, one of the best features of a Contract Management Software is its eSignature.
The US Federal ESIGN Act was passed last 2000 which states that eSignatures are legally binding. This means that any contract with an Electronic Signature of a willing participant is considered legal. This eliminates the need for contracts and deals to be signed physically which means that companies can save up on a lot of expenses like transportation, shipping and packaging of contracts. An eSignature is stored in the cloud and as such could be used multiple times for contracts that needed to be signed regularly. An example of this could be leases which needed regular renewals. If no terms are replaced then there is no need for a physical negotiation.
Contract Management Software can also streamline projects while providing managers with a full visual of your contracts’ performance and processes. Electronic signatures help in making all processes faster. Sales teams can close deals faster as there would be no need for any physical meeting. Once the deal has been ironed out and the contract drafted, it only takes a few more seconds to affix an electronic signature.
Contracts stored in an online cloud storage
Schools and Hospitals also benefit from this as many administrative papers can quickly be signed. This is essential to some of their services especially when they are faced with time-sensitive situations like medical emergencies. Not only will it make it faster but it also creates a more permanent record. Paper documents can easily be misplaced, distorted or destroyed. However, contracts will be stored in a secure, online cloud storage which means that your contracts would be safe from tampering and accidental loss.
Contracts in one consolidated space
For most business owners, having their contracts in one consolidated space is just a dream. It takes way too much time and energy to organise so much mess. Contracts can also be complicated and it would take the mental and physical power of an entire department just to get it organised. This would be financially illogical as it can be done just by one software. Just imagine how much resources your company would save on this.
Automating your contracts would also improve your own performance. Often, when companies have a man-powered contract management system, some agreed upon terms get forgotten or ignored. This leads to a lower performance which could prove detrimental to your contracts. It takes only one unmet KPI for companies to decide not to renew their deals.
Automated Calendar System
As if these features aren’t enough, a Contract Management Software also has an automated calendar system which reminds you of important dates and deadlines. One common unintentional mistake of managers is to forget when their contracts would expire. This could cost the companies a lot of money on compliance costs or actually just lose the contract altogether.
When you integrate a Contract Management Software into your business, there may not be immediate results but in the long run, you will be able to see a lot of the convenient processes that it brings. According to studies, companies without a proper Contract Management System lose over 9% of their annual revenue.