Business relationships start with a contract that lists out the duties, responsibilities, remuneration for the services, and a set of rules that should be respected and be followed. Software-as-a-Service (SaaS) platforms have helped innovate contract management software that helps streamline the entire process and have numerous features like cloud support, remote access, e-sign, and several other features. Contracts are expected by all businesses to be kept in their original form after they come into effect — any malpractice with the contract can be a loss to one or both parties.
Click here to read How Contract Automation is changing the Business World?
With contract management software, it is natural to think if it is safe to use, create and store the contracts. Here we discuss, why this is a must use software for all your contract needs.
What is Contract Management Software?
Before we discuss the security of contract management software, let’s familiarise ourselves with the basics such as what contract management software is, what it does, how it works, and why it is used.
Contract management system software helps two businesses efficiently create a contract, saving costs and time for the businesses. The software helps businesses to collaborate in real-time to discuss terms and conditions, it supports remote accessibility, helps you add comments, and supports eSign feature.
Many businesses are adopting the contract management software due to the same reason as it also helps keep track of the due date of important contracts that need to be renewed or nearing their expiration.
Click here to read Key Performance Indicators for Contract Management
Is the Software Safe?
The software is built with security and privacy in mind. The contracts are protected to the paragraph level, and to access a restricted page or paragraph, the user should request permission from the administrator/supervisor.
The software monitors which user accessed a contract and the entire team’s movement around the confidential information, it also stores all documents securely, and retrieves them immediately when needed.
The contract management software sped up the contract-making process and keeping a track of them by removing the need to store the contracts in paper format rather than the software that stores documents securely, and it enables remote access to keep your workflow active, helps you view the documents immediately, and more.
Click here to read Ways to Keep Your Electronic Documents Safe Long-Term
The Contract Management System Software vs Paper Contract Creation
Creation Process:
In the manual creation process, you write the contract from scratch on Microsoft Word, or you will find and modify an old word document or PDF to create a new document that is prone to a lot of human errors.
The software eliminates this risk as both the business parties are involved and keep track of the changes, comments, and more. Also, with the help of the template feature, businesses can create a template of frequently used contracts which saves them time in creating a new contract when required.
Negotiation:
In the manual creation process, the counterparty usually runs redlines on the document where changes are required. Once done, the changes are accepted, rejected, or new suggestions are given, and the updated draft is mailed out. This is repeated until both parties agree.
With the help of the software, both parties collaborate in real-time offering their suggestions, adding and removing clauses until both parties agree with the final draft, which removes the stress of going back and forth with emails and phone calls and mailing the drafts for approval.
Signing the Contract:
The software supports the eSign feature that enables you to eSign the contract and share the PDF with the involved parties instantly. The governments of the US, UK, EU, Australia, and Japan recognize eSign as legally valid.
Click here to read Critical Factors to Consider Before Signing a Contract
Integration
The contract management software integrates with other applications to keep the data in sync and smooth out the workflow practices. The integration process is seamless and can be achieved in no time.
Who Is This Software For?
This software is for businesses of all sizes and industries. But there are a few industries that use contract management software to alleviate the contract creation process.
HR Teams
Companies are creating new contracts every day as they are constantly hiring new employees. HR relies on contract management tools to generate contracts of employment that are lawyer-approved.
Finance Team
The finance team needs visibility into contracts for many reasons. They reconcile contracts and billing and also generate accurate revenue expectations for their business. The software helps enable transparency.
Sales Team
Rather than going back and forth with the legal department to create a contract, the sales team can create the contract using the software and close the deal. The sales team can also integrate the contract lifecycle management software with CRM such as Salesforce and boost their productivity.
Contract lifecycle management tools help in streamlining the process of creating and managing contracts. Businesses of all scales can leverage the solution in accelerating their contract-related processes. DocuCollab is one of the top contract management software for salesforce with an array of features and benefits. Click here to learn more.