Five Signs Your Contract Management is Outdated

5 Signs Your Contract Management is Outdated

To put it simply, every business needs a proper functioning contract management system in order to flourish; without a functioning contract system, you run the risk of missing out on potential revenue sources, missing important deadlines, risking legal obligations, and more.

Contract review process
Contract review process

In this article, we will go over how to understand when your contract management is outdated, how to fix this, and why you should care.

How to Know When You Need Legal Contract Management Software

Contract management is a crucial element of any business, and if your system is suffering then it is likely time to implement the best contract management software into your business’s operations.

Here are five signs that your contract management is outdated:

1. Missing Deadlines

If your business is missing key contract deadlines then this is a major reason to invest in legal contract management software.

There is no excuse for missed deadlines when it comes to legal contracts considering the options for contract management software available today.

Missed deadlines can harm your business processes
Missed deadlines can harm your business processes

Depending on your industry or type of business, the consequences of missing deadlines can be extremely damaging to your company and the people you serve. For example, a missed contract for a medical hospital could be the difference of having crucial patient medication or not, which could be the difference between life or death. In this case, good healthcare contract management software could have solved this issue.

Missing deadlines can mean missing payments such as rent, or forgetting to give notice on a lease you want out of; this can mean paying for rent after you’ve moved out or getting fined for missing payments. Or, it could also mean losing your business’s location – the importance of proper contract management cannot be understated here.

2. Wrong Contracts

Another sign that your contract management system is outdated is if members of your team are accidentally sending out wrong versions of contracts – these contracts may be outdated or invalid, and this minor mistake can result in heaps of lost time and money.

Errors or inaccuracies in legal contracts may worth too much
Errors or inaccuracies in legal contracts may worth too much

For example, what if a contract is sent out with inaccurate pricing… as in, the amount of money specified in a contract is simply not correct? This means that the two parties involved are working blindly with one another. Only when money changes hands will this error be noticed, which will then have to be fixed – a process that can take even longer than the contract was supposed to take in the first place.

3. Lost Contracts

The misplacement of contracts is an occupational hazard without legal contract management software.

Prevent loss of documents
Prevent loss of documents

It is obvious that losing a legal contract can have a vast array of damaging consequences on a business or team; not only does this present the opportunity for voided contracts, it means the legal contract must be signed once again which is sometimes a long and arduous process in and of itself.

4. Deleted Files

If your business saves contracts in a shared drive or a computer folder, you run the risk of accidental deletion – the consequences of this are similar to a lost physical contract.

Once something is deleted, it is gone forever – using procurement and contract management software prevents this since all versions of contracts are saved automatically.

Carelessness in document management may be worth too much
Carelessness in document management may be worth too much

Imagine the legal repercussions that could arise if legally-binding contracts are accidentally deleted from a computer; in this case, a contract management software for in-house counsel would solve these issues.

5. Physical Space

If you have yet to take contracts online, then these files are taking up valuable physical space in your office that is entirely unnecessary.

Procurement contract management software
Save physical space with contract management solutions

This is one of the most easily visible benefits of legal contract management software – there is no need for manual contracts anymore, and your business environment will improve by eliminating the need for storing contact files.

Why You Should Use Management Contract Software In Your Business

Contract management software plays a key role for any business that relies on legal contracts to operate which, of course, is most businesses.

benefits of contract management software
Update your contract management processes

If you have an outdated contract management system and are experiencing any of the ‘symptoms’ outlined in this article, then now is the time to invest in legal contract management software. 

It doesn’t matter how big your company is; contract management software for small businesses is relatively inexpensive to implement and the amount of saved stress and revenue will be apparent rather quickly. 

Missed deadlines, deleted files, saved office space… these are all issues of the past that can be fixed by relying on contract management software.

Find The Best Contract Management Software For You

Finding the best contract management software for your business depends entirely on your:

  • unique needs
  • Industry
  • company size
  • geographical location (if you are in the UK, search for ‘contract management software uk’; if you’re in the USA, search ‘contract management software USA’, etc.)
  • and more.

It is important to conduct intensive research in order to find the right contract management software provider for you – implementing this software allows you and your team the ability to focus on bigger problems, thus causing growth and improvement.

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