5 Avoidable Mistakes in the Contract Management Process

Louis Balla
Louis Balla
Louis is the Co-Founder of Anapact and partner at Nuage, a top rated ERP consulting firm based in Venice Beach, California.
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As a  business owner, you must know how contract administration has become increasingly important in the past few years. You may also find that traditional or manual contract management tactics are outdated in this day and age. In this digital era, data breaches have become a common occurrence and may require your company to employ complex regulations.

Today, we can claim that inefficient contract management exposes companies to specified risks. However, the widespread adoption of digital methods remains a hurdle due to unverified beliefs, preconceived notions, and myths surrounding cloud-based software for contract management. 

So without further ado, we’re debunking these common contract management software myths. Read on to learn more!

Myth: All Contracts Will Simply Disappear with a Cloud-based Software

Your contracts (or other legal papers) are safer on the cloud, where passwords and additional layers of security protect them to avoid data breaches. Contracts kept in a secure cloud system are available only to authorized personnel instead of physical copies, which are easily misplaced or stolen. 

To simply put it, you cannot afford to take chances with the storage or exchange of personal data in the age of GDPR.

Myth: Contract Management Can Be Easily Accomplished Manually

Exari observed that 76% of General Counsel still use “copy and paste” templates when drafting. This inevitably delays transactions and might lead to errors if a vital phrase is overlooked. If other departments generate contracts manually using out-of-date templates, you risk losing control. 

Contracts are complex legal instruments that apply to a wide range of situations. Contract management systems allow you to set contracting standards and workflows, share standard templates and term libraries, and keep complete control over contracting at all levels. 

Meanwhile, word processors and filing cabinets were never meant to let corporations communicate with one another.

Myth: A Cloud-based Contract Management Won’t Allow Me Easy Access

All business staff will be given rapid access to information thanks to cloud-based legal management software. With such a progressive system, reminders for renewal dates and e-signatures can also be set and provided for your company. When contracts are spread out across departments, it may be challenging to keep track of deadlines and responsibilities.

Myth: Obtaining Contracts Will Take Extra Time with a Cloud-Based Software

Nobody likes to waste time rummaging through a filing cabinet or print fresh copies of several contracts. Fortunately, this type of problem is eliminated by cloud-based contract management software. With this refined system, it will be effortless to store, retrieve, and track contracts and information.

Myth: I’ll Have No Say over My Contracts

Because of its structure, cloud-based legal management software allows you more control over contracts. On the other hand, contracts are stored haphazardly using manual processes, making them difficult to locate and assign responsibility for. 

As a result, contracts become unaccountable. A cloud-based software platform allows you to manage contracts more effectively and efficiently as the number of contracts grows.

Conclusion

After debunking these myths, perhaps it’s time to select a cloud-based contract management software for your team. Businesses with the necessary contract administration competence can save time and money while gaining control over access and work efficiency. This way, you’re able to provide not only your employees with state-of-the-art processes but also your clients with seamless service.

Are you looking for reliable contract tracking software? Anapact integrates your entire team when it comes to contract changes and management. Your business can expand with zero risks and full compliance through our simple, scalable, and fairly priced service. Book a demo today!

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- About the Author

Louis Balla
Louis Balla
Louis is the Co-Founder of Anapact and partner at Nuage, a top rated ERP consulting firm based in Venice Beach, California.