Contract management software is a solution to the traditional contract lifecycle process; using this software, businesses have the advantage of streamlining and automating every phase of a contract, from creation to signing.
This means fewer hours and resources spent on dealing with legal documents.
But, considering how useful this software is to organizations of all industries and sizes, it is no surprise that there are now a lot of contract management solutions available on the market.
So, when choosing the best contract software for your business, you should know what features to look for — in this article, we will go over exactly this.
How Does Contract Management Software Help Businesses?
Depending on how big or small your business is, you may deal with a large number of contracts on a day-to-day basis or not very many at all.
However, contracts and legal documents are still required to operate and conduct any form of commerce. So, even if contracts do not take up a large portion of your day, the point still stands — contract management is an important process that should be optimized as much as possible.
According to Parley Pro, the more efficient your contract management system, the less time and resources are needed in order to create, negotiate, sign, and manage contracts.
Contract management software is the ultimate solution for businesses that want to simplify the traditional contract management process.
This software has many benefits, such as:
- Improving overall security.
- Allowing for easy contract creation.
- Fully remote contract negotiation and signing.
- Offering secure storage for contract.
- Making it easy to view & retrieve contracts.
- Preventing legal obstructions.
Overall, contract software helps businesses simplify the contract management experience, which frees up time and resources to focus on more growth-oriented tasks and activities.
All of these benefits (and more) are provided with contract management software.
However, not all software is made equal — that’s why it’s important to know exactly what features to look out for when choosing which to implement into your business.
Which Types of Businesses Need to Use Contract Management Software?
Every business that uses contracts — whether this means vendor agreements, employee contracts, product sale contracts, etc. — can benefit from a contract management software.
But, the businesses (and departments) that require this software the most are:
- Law firms (and legal departments for any business).
- Finance and technology businesses (these usually require many legal documents in order to operate).
- B2C & B2B product or service businesses (selling products and services require many contracts and agreements).
- HR departments (these departments generally use lots of contracts).
- Hospitals and healthcare providers (these organizations deal with a large volume of very important contracts).
- Insurance companies (similar to healthcare providers, insurance companies deal with lots of contracts that carry importance).
- Procurement teams (these departments need contracts to procure goods and services).
All that said, so long as your business deals with enough contracts such that physical document creation and signing is a burden, contract management software will greatly benefit you.
Why Can It Be Challenging to Find the Best Contract Management Software?
As mentioned previously, finding the right contract management software can be challenging since there are so many options available on the market.
All of the software providers offer different features and capabilities, which is why it’s so important to know what to look for.
What Are the Features to Look for in Contract Management Software?
Of the many features available in contract management software solutions, here are the five most essential ones to look for:
Clause & Template Libraries
Clause and template libraries make the contract creation phase — a stage that can take a significant amount of time depending on how complex the contract is — a piece of cake.
These libraries make it simple to not only create contracts in a short amount of time, but these contracts are automatically legally valid — you don’t even need the help of your legal staff.
Automated Alerts
Automated alerts and notifications help businesses keep track of deadlines and avoid breaching contract obligations.
These alerts can be customized by each business to determine when they are sent, who they are sent to, the format they are sent in, etc.
This is an essential contract management software feature that has many benefits to businesses of all sizes.
Central Database
A central database is a very useful feature of contract management software that provides businesses with one-stop access to their entire contract ‘library’.
Not only does this make it easy for businesses to find and view various contracts, but it also has security benefits — it is much easier to protect one centralized database than a collection of computer folders or filing cabinets.
Dashboards & Reporting
Reports and dashboards each have their own benefits for users.
Dashboards allow businesses the ability to get a ‘birds-eye’ view of various contracts and data — without a dashboard, sorting through information is difficult.
And, with reporting features, the software automatically provides businesses and personnel with the essential info they need to gauge how their contract system is working, what needs to be done, pressing issues, etc.
Both dashboards and reporting make it easy for organizations to manage their various contracts effectively.
eSignature
eSignature stands for electronic signature.
As the name suggests, this feature allows users the ability to sign contracts via computer — no need for travel and pens.
This means when a particular contract must be signed, all involved parties can do it from their own location so long as they have internet access. This also means users can sign on their own time — no meetings required.
As far as contract management software features go, this one is a must-have.
Why Is It Important to Find the Best Contract Management Solution for Your Business?
Contract management software simplifies the entire contract lifecycle, which makes for a better contract experience for everyone involved.
This means an increase in productivity, faster contract cycle times, a reduction in errors, easier management, and on-time renewals.
By reducing the amount of time spent on contract management, businesses will have more time to spend on higher-ROI activities.
Also, by improving data security and legal compliance, you are saving your business from potentially damaging security breaches and legal obstructions.
