There are more than 33.2 million small businesses in the US, and each one is different.
One of the main goals that they all share, however, is growth. It’s key to success and will allow you to increase profits, take on more staff, and expand into new markets.
With that in mind, growth isn’t easy. It brings various challenges with it, and one of those is an increased number of contracts. Dealing with these can become difficult, but there are solutions that you might find useful.
In this guide, we’ll go over five major advantages of using contract management services. Keep reading for more.
1. Accelerating Contract Review and Execution
Reviewing and executing contracts is a time-consuming process. There’s a lot involved, and if someone doesn’t quite know what they’re doing, it can be difficult to get through just a single contract.
Contract management lawyers have the skills and experience needed to tackle them far more easily. They’ll be able to assess all the details of any business contracts to ensure everything is in order.
It’s worth noting that some businesses struggle even before this point. Contract creation can be tricky, so it’s best to have the assistance of a skilled contract manager.
Trying to do this in-house will take up a lot of time that your employees could spend on other tasks. A contract management expert will make things far more efficient.
2. Reduce Business Risk and Improve Compliance
All businesses face risks, and these can vary significantly. It’s important to always work to mitigate risk wherever possible. A professional software contract attorney can help you reduce risk in multiple ways.
They’ll maintain records of all contracts, as you may need to refer back to these at a later date. Being able to find any contracts as and when you need them will help you deal with any issues that arise.
Perhaps most importantly, they’ll help your organization stay compliant. When dealing with commercial agreements, there are a lot of rules and regulations at play. Being non-compliant can result in legal issues, so this isn’t something you want to have any trouble with.
On top of compliance reducing the risk of any legal issues, it also helps you better control how your business operates. You can have contract templates and clause libraries that help you establish new contracts more easily. If any changes need to be made to your commercial contracts, your contract attorney will be able to handle this for you.
3. Expand Contract Visibility With a Single Source of Truth
All contracts and records should be properly organized. A contract lawyer will be able to do this, and they can provide contract details to anyone who needs them. When any team members need to locate a contract, they can go to your contract lawyer, and they should know exactly where to look.
If it makes sense for your organization, you can increase visibility for suppliers and/or clients. With contract management software, you can provide and control access to those who may need it. This will speed things up which may be ideal in time-sensitive situations.
4. Negotiate Better Renewals in Less Time
Staying on top of your contracts will make it easier to know which ones are close to expiring. When renewing contracts, you might want to make changes, and this takes time.
If you know when contracts are approaching their renewal date, you can start determining what changes you want to make with plenty of time. Your contract lawyer can help you with this, allowing you to make changes and negotiate renewals in less time.
With the assistance of contract management software, they can track other things like terms and obligations with a specific party. All of this can help when deciding on the terms of a renewal. It may also make it easier to analyze and discuss performance as well as future KPI measures that you may want to include.
Contract management software can generate reports based on performance obligations, renewals, contract end dates, and more. It can support invoicing and spending to help with accuracy. Some platforms may also offer recommendations to help improve revenue.
Such software can take care of smaller tasks such as sending out email notifications when contracts are close to renewal. This will help your team ensure all obligations are met and can improve customer satisfaction.
5. Value-Added Document Management
Filing systems need to be organized, and the more files there are, the more important this is. Contract management lawyers know the importance of this, so they’ll ensure all your contracts are kept appropriately.
They can use contract management software to store and organize all of your contracts, regardless of how many you have. They can then use this to find specific words or figures instantly, regardless of where they’re located.
Even if you have contracts saved as PDF or JPG files, this isn’t an issue. Contract management software can convert these into text so they can be searched with ease. It’s even possible to access these documents from a mobile device in a remote location.
Are Contract Management Services Right for Your Organization?
Like many services, the need will depend on how your organization operates. If you’re dealing with multiple contracts and want to keep things in order, a contract management lawyer can be immeasurably helpful. As your business grows, it will become even more important to consider contract management services.
For more business articles, check out some of our other blog posts.