Contracts are important items in business, as it is through these signed papers that two parties can agree on a deal that will benefit both of their companies or organizations. In simpler times, contracts would often be signed at least one or twice a month, but in today’s era, where businesses and brands are oversaturated in the market, contracts are signed by one company at least twice or thrice a day.
With these many contracts being signed, it is often difficult for business owners to sign each contract and manage them every day. Thankfully, there is the software called contract lifecycle management, better known by its acronym CLM, that helps businesses manage their contracts by being able to perform several processes needed in contract signing, execution, renewal, and compliance. Besides managing contracts, the CLM software is also able to help businesses in a variety of aspects focused on contract management. Here are some of the business risks that can be curbed using CLM software.
Lost Contracts
When you have too many contracts, you will be prone to losing at least one or two of them, and lost contracts would often result to you asking for another copy of the contract from your partner. By asking for another copy, your partner may lose his or her trust on you, as losing the contract would mean that you don’t value your partnership or agreement. With the help of the CLM software, the business will be prevented from losing any contract with business partners, as it uses a large database that can store all your contracts on your computer or in the cloud service.
Contract Deadlines Missed
Most contracts would often have expiration dates, and if your business have a lot of contracts, it would usually be difficult for you to keep tabs on every contract deadline. If you have missed a deadline on a contract that is focused on licensing agreement with the partner’s intellectual property, then there will be liability risk if you keep using the partner’s IP while the contract has ended. You can prevent this from happening by being updated on each deadline, which you can do by having the CLM software on your computer that will remind you about expiring contracts. In addition, the software can also help you seek for contract renewal if ever it is needed, so you wouldn’t have to ask for a renewal manually.
Messy Workflow
By having many contracts to sign and manage, you would have difficulty managing your time and daily workflow, thus preventing you from being productive in running the business. Furthermore, having a messy workflow would also lead to delays on contract signing and agreements, which can further destroy your deals with partners. With the help of the CLM software, you will be able to manage contracts without the need to check them out manually every now and then, as the software will be the one that will manage the contracts for you. To test out how the program can improve your workflow, visit https://parleypro.com to schedule a free demo of the CLM tool.
In addition, if there are multiple contract signings that needed to be done per day, you can use CLM to sign the contracts for you, but it would be recommended that you pair the software with Adobe Sign or DocuSign to have a better and more authentic signing for each contract. If a deal is being done or a contract is signed, the CLM software will notify you on changes to the database, so you wouldn’t have to worry about checking for updates.
False Reports
By managing too many contracts, company managers may often give false reports about contracts, which can consists of wrong deadlines or incorrect contents of the agreement between two parties. Because of these false reports, the business may suffer from irreversible problems that would cost it deals and partnerships with bigger companies.
Through the CLM software, you will be able to have a 100% reliable report that is written automatically by the computer running the program. Because a computer is the one doing the report, you are ensured that there will be little to no mistakes on the reports that you will be given regarding your current contracts. In addition, you can customize the report of the software by just selecting which aspect of the contracts you want to take a look at so that you will have an easier time pinpointing any needed details without having to take a look at other items on the contracts.
Those are just the different business risks that you can avoid by simply using CLM software. Managing a business is already difficult enough for many, so having special programs that can help you manage contracts will definitely be beneficial in improving your company’s productivity, as you are able to use the time for signing and managing contracts to do other tasks for the business. If you want to be more productive and involved in other departments or aspects of your business, try using the CLM software, as well as other programs that will help in performing different actions in the company.