Contracts form a vital part of several types of businesses. The number of contracts can range up to thousands even for mid-size companies. They are crucial to maintaining relationships between the stakeholders. Hence, the activity of managing contracts is termed ‘Contract Management’, and the process to manage the contracts is called Contract lifecycle management [CLM].

What is a Contract Management Software?

With the advent of technology and automation, contract management has been digitized with software. This software digitizes the execution and monitoring of contracts to enable businesses to maximize operational and functional performance. The demand for contract management software has been on the rise.

According to a report by MarketsandMarkets, the Contract Management Software market will grow from $1.5 billion in 2019 to $2.9 billion by 2024.

So, if your business involves contract management, here is a list of benefits of contract management software that you should consider:

Benefits of Contract Management Software:

1. Better Management of Documents:

The contract management software improves the management of documents by enabling businesses to store them digitally. The team members can scan the printed documents, and upload them to the software. The software then converts the PDF or JPG (or any other format) file into a searchable text using optical character recognition that makes the documents accessible from any device and from anywhere. Digital documentation eliminates the need of physical storage of documents in filing cabinets, thereby saving office space.

2. Reduces Risk:

There is a risk involved in every aspect of a business. The risks are of different kinds, but the ones pertaining to the contracts can prove to be devastating for the business as contracts govern all commercial relationships. These risks can be minimized with the integration of contract management software. Most of the modern ones offer visible audit trails and strict compliance monitoring. Ignoring these risks of non-compliance can result in substantial penalties and litigation.

3. Helps to keep up with the renewal dates:

It’s human to miss the dates. The contract management software helps eliminate human intervention & errors by providing the feature to set alarms at each milestone of the contract including the renewals. The system would send notifications and alerts based on the specified rules, which would help you not miss the opportunities.

4. Assists in preparation for audit:

Audit trails are vital to the successful execution of contracts, and the identification of potential risks. The contract management software enables access to all the contracts and their history with a click of a button. With this, you will be able to keep track of the audit trails and compliance/non-compliance of contracts.

5. Provides features like E-signatures:

Since the passage of the ESIGN Act in 2000, E-Signatures are an integral part of business transactions. They are legally binding and considered more secure than the traditional hand signatures. It makes the work easier. Hence, the contract management software comes with a loaded feature to provide E-Signatures on the contracts. E-Signature enables faster approvals & execution of the contracts.

6. Improves functional efficiency:

Automating contract management through best-in-class software can help businesses reduce manual efforts and the amount of time invested for the same. It also reduces the scope for errors that can affect the contract’s performance. The businesses can focus on measuring the contract’s performance, and other strategic aspects like the areas for improvement.

7. Helps optimize financials:

Uncontrolled or maverick spending can affect the business cash flow. The contract management software organizes the engagements and obligations of an organization with its stakeholders including Suppliers, thereby improving the spend visibility and transparency. A business will know and keep track of where exactly the money is going, thereby reducing maverick spending and gaining better financial control.

Which contract management software to choose?

While there are many software available in the market namely PandaDoc, ContractWorks, DocuSign, etc.; We (at iU Online Media) are inspired by the feasibility of Zapendo for any type of business.

Zapendo is a contract management software that gives the power to manage contracts, edit them on the fly, send for eSignature, manage expirations, alerts, and many more. Below is a brief list of the features offered:


Features:

- Contract editing

- Contract Templates

- Collaboration & Sharing

- E-Signatures

- Embedded Forms

- Custom Workflows

- Linking of various contracts

- Advanced data reporting

- Managing contracts through approval, termination, or suspension [Full lifecycle]

- Managing contract dates & expiration alerts, among others

Conclusion:

Contracts are at the heart of successful business relationships. Effective management of contracts can lead to business success, while ineffectiveness can cost business opportunities. The contract management software helps minimize the risks, optimize financials, improve functional efficiency, and help you keep up with the renewal dates of contracts.

Hence, if you are looking to grow your business, contract management software like Zapendo can be a great solution for all your contract management needs. You can use the code ‘INSPIRATION1532’ to get a discount.

What are your thoughts on this article? Do let us know in the comments below!


Image Credits:

Image 2: https://howtostartablogonline.net/legal/, CC BY 2.0, via Wikimedia Commons
Image 3: Zapendo