Contracts are the backbone of every business. From contracts with clients to employment agreements, contracts are essential for defining the terms of any business relationship. However, managing contracts can be a daunting task, especially for businesses with a large volume of contracts. Fortunately, contract management systems are a savior in this case and help to streamline the entire contract lifecycle.
So, this article will explore the six must-have features of an effective contract management system that will help you manage your contracts efficiently and effectively. These features will help any business to stay on top of its game and ensure they never miss an important deadline or clause.
Top 6 Features of Contract Management System
For the maximum advantage of Contract Management Software, it is significant to choose the apt one. So, let’s take a closer look at the subsequent features and how they can help you take your contract management to the next level.
Optimal Security
Selecting a contract management system that lacks robust security measures can expose your company to various risks, such as data breaches, leading to legal liabilities. Therefore, it’s crucial to safeguard your highly sensitive contract data by implementing the appropriate contract management features.
To ensure optimal security, your contract management system should utilize multiple techniques. These include compliance with the SOC 2 and Type II standard. Coupled with a rigorous data encryption process, and Google Cloud Platform hosting for secure data storage. It is important to conduct frequent penetration testing to detect any vulnerabilities. Furthermore, your chosen contract management software should comply with the GDPR and other relevant data privacy regulations.
Central Contract Repository
A central contract repository is a vital component of any effective contract management system. This centralized database allows for easy and efficient access to all of your company’s contracts in one location. By having a central repository, contract management becomes much more streamlined, as it eliminates the need to search through various documents and emails to find specific contracts. Instead, all relevant contracts can be stored and accessed in one place. Moreover, a central contract repository enhances collaboration among team members involved in the contract management process.
Automation
If you’re serious about managing contracts effectively, you need to prioritize keeping track of key dates and deadlines. This is where the automated alerts feature comes in. With this feature, you can set up alerts based on any date field captured in the contract, ensuring that you never miss an important deadline or obligation. A good contract management system should make it easy to set up and manage automated alerts. You can choose when to start sending the alerts, how often to send them, and what format they take, such as emails or in-system notices.
Advanced Search Capabilities
A powerful search capability is crucial for a contract management system as it allows users to quickly and easily find relevant information within their contracts. Contract management systems can contain vast amounts of data, including contract terms, clauses, and important dates. Users may experience delays, missed deadlines, and possible legal risks if they cannot locate critical information due to the lack of a robust search function.
Customized Workflows
To ensure proper contract management, it’s essential to monitor agreements before and after execution. It is just as crucial as creating, organizing, searching, and reporting on contracts. Automated contract workflows can help with this. These workflows define the steps in the contract management process, delegate tasks, and send notifications to ensure that everyone involved in the process is aware of their responsibilities.
Integration Capabilities
Integrations are crucial for a contract management system because they allow seamless connectivity between different software used in an organization. A contract management system may need to integrate with other enterprise systems, such as customer relationship management (CRM) or enterprise resource planning (ERP) software. Integrations enable the contract management system to retrieve data, such as customer information, purchase orders, and pricing data, that may require managing contracts.
Integrations can also help automate processes and improve the accuracy and efficiency of contract management. For instance, integrating a contract management system with an e-signature platform can simplify the process of contract signatures, reduce the time it takes to finalize agreements, and ensure compliance with legal and regulatory requirements.
Conclusion
A Contract Management System is a powerful tool that can help businesses of all sizes manage their contracts with ease and efficiency. By incorporating the six must-have features discussed above, you can take your contract management to the next level.
Whether you’re a legal professional or a business owner, investing in contract management software can save time and money, minimize risk, and increase productivity. Be sure to implement a Contract Management System in your organization to start enjoying the benefits today!
Author Bio:
Qurat-ul-Ain Ghazali, aka Annie, is the growth manager at Contractbook and looks after all the organic channels. She has been with tech startups and scaleups for a couple of years with a B2B focus. You can find her socializing, traveling, indulging in extreme sports, and enjoying the local desserts when she is not working.