It doesn’t matter if you are an entrepreneur or a legal associate, there is one set of documents that make regular visits to your desk — the contract. Whether you are raising funds from investors, or onboarding clients, or simply hiring new staff, every activity you undertake as part of your business needs to be supplemented by a contract.
In a nutshell, a contract serves as a record of commitment between two or more parties. This document defines the rights and obligations of the participants and also lists out the consequences in case of noncompliance.
Yet surprisingly, despite its significance, the attitude of companies towards contract management has been overwhelmingly lethargic. Even today, it is common to see companies use outdated methods such as never-ending email threads or long paper trails to manage contracts. However, this practice invites mayhem in the form of misplaced documents, missed deadlines, and unwarranted exposure to liability.
Fortunately, there is a rather simple and efficient digital solution to this traditional problem. By utilizing contract management software, a company can easily tackle their documentation woes and rid themselves of legal hassles.
What is a Contract Management Software?
A contract management software enables businesses to digitize and automate the entire contract lifecycle by unifying all allied activities onto a single platform. The activities include:
- Create: Generate a contract from scratch
- Edit: Proofread or enhance contracts
- Collaborate: Coordinate with other users
- Review: Analyze the contracts for any loopholes
- Store: Safely record the contract for future references
- Distribute: Share the contract with other users or counterparties
- Execute: Sign off the contract and put it into action
- Monitor: Track the health of the contract in terms of renewal or expiry
- Secure: Protect contracts against loss or damage
The benefits of contract management software are many. It helps organizations to reduce timelines, improve productivity, and save big on costs. Additionally, this software also assists different departments within the organization, including legal operations, sales, human resources, and more, by allowing them to streamline operations.
Today, the market possesses multiple solutions, each providing an edge over the other. Therefore, it is important to pick the right contract management system that fulfills the requirements of your organization and helps you to take your business to the next level.
How to Select a Contract Management Software?
To make your task simpler, we have compiled a small checklist that highlights the top qualities of a great contract management solution. A good Contract Management Software should have following assests-
A well-designed platform goes a long way in improving the adoption of the software among employees. Select a software that provides tools that can be operated with convenience and that encourages collaboration among teams. The platform should also offer templates that can be modified and executed with minimal effort thereby improving productivity.
Another element to look out for is how well the software can be integrated with other existing tools utilized by the organization. This step ensures that there is a seamless exchange of information between the contract management software and the organization’s CPQ, ERP, and CRM systems. It also makes the platform scalable as new third-party integrations can be introduced in the future.
In the age of remote working, it is important to select a platform that is online and optimized for an array of devices. Opt for a cloud-based contract management solution that stores documents on a centralized repository. This allows teams to quickly summon records on the platform from any device or location with relative ease.
Big Data is playing a significant role in the decision-making processes of businesses. A platform with an integrated data analytics tool will help highlight trends and prompt actionable insights in the document lifecycle. This enables the organization to optimize operations and reduce costs.
An AI-powered contract management software will support your business to automate tasks and eliminate human errors. The feature will prove indispensable to your team as it will assist in reviewing and processing higher volumes of contracts with greater speed and accuracy. This way, you can prevent risks, such as lapses, delays, etc., and identify opportunities, like renewals, enhancements, etc., throughout your contract lifecycle.
SpotDraft offers all of the contract management features listed above as well as a variety of other valuable services. With a native in-line editor, it is now easier to revise contracts on the go. Likewise, a robust AI protocol delivers intelligent feedback based on the parameters you provide. Finally, an abundance of templates enables your team to draft and execute contracts swiftly.
At the end of the day, all business relationships begin and end with contracts. A software that organizes the many activities in the contract lifecycle helps bring precision and consistency to the documentation process. By leveraging the services of a contract management software, organizations can mitigate their risks and simplify operations.
Also read: 8 Top Contract Management Software Platforms
Curious about how SpotDraft helps enterprises manage their contracts better? Check out the features page to learn more!