For a business which handles a large number of contracts, physically managing each and every single one of them can be a time consuming process. This is why online contract management solutions are fast gaining acceptance among many business owners. And if you are unsure of how such services can benefit you, below we list out the five benefits of using a contract management software for your business.
Shortened Sales Cycle
The biggest benefit of a contract management software is that all deals can be closed faster. While managing the contracts manually might have taken days to close a deal, it can be done in just a few minutes with a contract software. As a result, your business will also receive revenues faster. Plus, the risk of a deal falling through while the paper contract was being processed is eliminated by using the contract management software.
A contract management software also helps in mitigating risk. By using the software, you can easily track the vendor performance in relation to the contracts and find out those who are not performing as expected. You can then take the appropriate action to make the vendors fully compliant with the contract.
Contracts managed through the cloud offer far more security than the paper contracts. With a paper contract, you have to secure them in a safe and make sure that the keys are not lost. In contrast, if you use a contract management software, all your contracts are stored online in the cloud. And only you will be able to access it through a password. All contracts are highly encrypted to make sure that no one, other than you, has access to them. Plus, when a contract is made, a digital signature will also be applied to them. This prevents any forgery attempt by other parties since any attempt to alter such contracts will invalidate that contract immediately.
Using a contract management software helps you save money. Since all contracts are stored and accessed online, less time is required for an employee to sort and analyze them. As such, you can use the employee for other purposes. And since sales cycles are completed instantly, you won’t be losing out on too many sales due to delay in completing contractual procedures. Plus, the incidents of revenue leakages are also minimized by the use of the software.
A business organization will use many tools like Dropbox, Gmail accounts and such. And with a contract management software, you can integrate all these services to streamline your workflow. Some software will also allow you to integrate Salesforce and other similar platforms into their contract management service. And this is an advantage you will never have if you choose to manage the contracts manually.
Given the above benefits, it should be clear for any business owner that using a contract management software is definitely in their interest. Just make sure that the software you use is credible and has a large enough client base who are happy with the service.