We know — contract management is kind of like weeding your garden.
It may be tedious while you’re at it, but having a clean yard is well worth the work.
Contract lifecycle management (CLM) is a critical part of doing business.
After all, contracts are the backbone of any relationship, and improper management can lead to an unnecessary breakup.
It may be a monotonous task, but someone's gotta do it. And just because that someone is you doesn’t mean it has to be hard.
See below for the biggest challenges of contract management and learn about CLM tools that take the pain out of this critical part of your business.
Contract management tools simplify the contract lifecycle. Some tools can automate contract creation, approvals, execution, and tracking. Some even have AI contract management features.
By automating these processes, businesses can avoid costly mishaps and omissions.
Contract management tools take the manual labor out of the contract management process and give you everything you need all in one place.
Keep reading to learn about nine important contract management features.
You may love manual contract creation. It’s kind of like the analog vs. digital debate. Some filmmakers and musicians swear by the old way of doing things. And, you know, sometimes it does just feel better.
But in this business, you want to prioritize accuracy and integrity over everything else. Not only is manual contract creation prone to mistakes, but the process is also time-consuming.
That’s where automated contract creation comes into play.
If you create a high volume of contracts, automation takes the hard work off your plate, and, more importantly, ensures accuracy.
Not sold yet? Here are a couple more ways automated contract creation can help:
Contract authoring tools help you figure out what clauses to include based on the type of contract being created. You can rest easy knowing that you’re capturing all the necessary information and that your contracts are compliant with company policies and industry regulations.
If you’re facing these challenges:
You should look for software that can:
The approval chain has a nasty habit of bottlenecking at the worst times.
Pre-set workflows automate this process. This means the right people will see the contracts exactly when they need to.
Some software will also include version tracking. This will help you confirm that everyone is on the same page for the final document and easily refer to earlier versions as needed.
If you’re facing these challenges:
You should look for software that can:
Now that you’ve gotten the sign-off from the suits, it's time to move on to the next step in the contract lifecycle: execution.
Contract execution is the moment when all parties have signed the document and the contract becomes legally binding.
Contract management software can automate this process and keep track of contracts once signed.
Gone are the days of faxing, printing, scanning, or sending contracts by mail. Now, e-signature software can get contracts signed at the drop of a hat.
If you’re facing these challenges:
You should look for software that can:
Take a look at how straightforward assigning e-signature tasks can be.
Tracking and obligation alerts help you stay on top of contract renewals, deadlines, and payments.
Some systems will even generate reports on all upcoming obligations. This will give you a bird's-eye view of everything that's in the pipeline.
If you’re facing these challenges:
You should look for software that can:
Staying on top of key dates is a breeze. See for yourself.
Ever wish you could Shazam your contracts? With the right contract management tools, you can.
Say goodbye to the dusty filing cabinet.
Contract management software keeps all your documents in one place, so every document you need is only a few clicks away. A centralized repository will also allow you to search for specific clauses or terms across all your contracts.
Online document storage can be a lifesaver when you’re trying to track down a provision that you know exists but can’t remember where it’s located.
If you’re facing these challenges:
You should look for software that can:
Check out how easy organizing your documents can be.
Keeping your contracts safe is important. After all, they contain sensitive information that could be damaging if they fell into the wrong hands.
When you’re looking for a contract management software, make sure to find one that offers best-in-class security features. This includes things like data encryption, multi-factor authentication, and role-based access control.
If you’re facing these challenges:
You should look for software that:
Only the people who are supposed to be viewing documents should have access to them. Not securing your contracts can be devastating. From costly HIPAA violations to business-busting data breaches, the risks are very real.
That’s why it’s vital that contract management software offers customizable roles and permissions. This way, you can control who has access to which documents and features.
If you’re facing these challenges:
You should look for software that can:
Setting permissions has never been easier. Take a look:
Contract management systems make it easy to find exactly what you need. But the best of the best will take it one step further with a feature called optical character recognition (OCR).
OCR is a miracle of modern computing.
Need to search metadata? Done.
Can’t remember if you saved that contract as a Word document or PDF? No problem.
That contract you took a picture of at lunch last week? OCR can find that, too.
If you’re facing these challenges:
You should look for software that:
See how powerful OCR can be below.
Your contract management software needs to play nice with other tools. That way, you don’t have to worry about creating separate databases or losing any data.
Whether you're using CRM software like Salesforce or HubSpot or e-signature software like DocuSign or Dropbox Sign, you'll need to integrate your contract management software with other platforms.
Not only will it help you streamline the contract management process, but you’ll also score some major points with your IT team.
If you’re facing these challenges:
You should look for software that can:
Contract management software can save your business time and money. It's as simple as that.
Here’s how each of your teams can benefit from contract management software.
Legal
In-house counsel can use contract management software to track deadlines and automate renewals. It can centralize all their client contracts in one place.
Legal contract management software can also help you stay ahead of pesky regulations.
Procurement
Automating your contract management processes can help your procurement team save time and money.
E-signature functionality is a lifesaver in the approval process. And vendor contract management software that tracks spending can make your budget easier than ever to follow.
Sales
If your sales team is using a CRM tool like Salesforce or HubSpot, you'll want to make sure your contract management software integrates with it. That way, your sales reps can access customer contracts and add new deals to the contract management system with just a few clicks.
IT
When it comes to software contracts, your IT team should be involved in the negotiation and review process so they can provide input on licensing terms. This will ensure the software will work with your company's existing infrastructure.
Finance
From a financial perspective, it's important to have visibility into all your company's contracts. Cloud-based contract management software can help you identify opportunities for cost savings. It can even flag payments that are due soon.
Still not sure if contract management software is right for you? Check out some frequently asked questions to solve your contract management woes.
What should a contract management tool do?
A contract management tool should help you automate and streamline the contract lifecycle, from creating and negotiating contracts to storing and tracking them.
How much does a contract management tool cost?
Contract management tools vary in price, depending on features and scalability. Some tools require an additional fee per user, while others include a certain number of users for no additional fees.
Is there a difference between contract management software and document management software?
Yes, there is a difference. Contract management software focuses specifically on contracts, while document management software can be used to manage any document.
What are the benefits of using contract management software?
Benefits of using contract management software include:
Not sure if contract management software is right for you? Here are a few questions to help you decide if contract management software is right for you:
If you answered yes to any of these questions, contract management software might be a good fit for you. Schedule a free demo with us to learn more today.