4 Features to Look for in a Contract Management System
by Jarno Koopman on April 20, 2020
Think you and your team might benefit from contract management software? Don’t know where to start?
As Benjamin Franklin said, “An investment in knowledge pays the best interest!”
Educate yourself on the important features to look for in contract management software, so you don’t end up wasting time and money on a solution that doesn’t actually make your life easier.
Why use contract management software at all?
Old habits die hard. And professionals and small businesses alike are probably used to managing contracts manually or “old school” — from tracking in Excel spreadsheets to storing digital files on local drives.
Most businesses considering a new contract management system will be looking to understand what to expect from its features as these may be more advanced than what they’re used to. Or understandably, even the idea of handing over such an important part of your business — the contracts — to a software solution can make any owner nervous.
Potential issues from compliance to internal confusion can arise from contract management systems that are not properly vetted or implemented. So before you dive into your free trial, be sure to educate yourself a little bit about what contract management software does and what it should do.
What is contract management software?
Contract management is the process of managing contract creation, execution, and analysis to maximize the operational efficiency and financial performance of an organization. Effective contract management can improve relationships and lead to greater profitability.
Contract management software handles the manual part of creating, sending, tracking, and reporting on contracts. It can be an all-in-one system that allows you to send contracts faster and more efficiently, while reducing risk for errors.
4 KEY features to look for in contract management software
1) Contract Templates
Getting contracts out fast and without errors can really improve your sales process as well as set your project management team up for success. The contract management software you choose should include templates to prevent you from reinventing the wheel every time a new contract comes along. Templates are especially important for professionals who manage a large volume of contracts at once, like digital marketing agencies, architectural firms, and more.
2) Smart Generation
Are you tracking critical information like “Accounts Receivable Contact”, “Services”, etc. in multiple systems? Often, businesses are collecting this information as part of their main CRM.
"Consider a contract management system that is able to integrate with your CRM and pull in this information — it keeps workflows streamlined and helps make sure that information is accurate and secure across all systems."
3) Automated Alerts
The importance of automating whatever contract management system you choose cannot be overstated. Missing notifications for important contract dates — such as project completions or retainer renewals — can put a big damper on your cash flow, especially for smaller businesses. Doing so will also limit your ability to cross-sell or upsell current clients, as well as your overall chances of increasing customer lifetime value. And sending late invoices? Eek, not a good look. With intelligent and automated alerts, you can make sure it doesn’t happen again.
4) Reporting & Visibility
Make sure whatever contract management software you’re looking into increases your visibility with real-time reports. Creating and sending contracts is one thing; and winning them is the obvious end goal. But what if you could see all contracts from a birds-eye view? And even better, report on which contract types are your most profitable? Everything will come full circle if your contract management software also supports a robust reporting dashboard for you to view the status and outcomes of all contracts.
NEXT STEPS: Get on board with a solution
Now that you’ve identified which automation and smart features are important to choosing a contract management software, it’s time to evaluate your options.
First, you will need to think about your pre-existing internal process i.e. who is responsible for managing contracts, your plants to scale, etc. You will want a contract management system that can grow with you and help you take on more, more easily.
Next, searching product review sites like G2Crowd can really help provide a holistic view of all software options out there and allow you to easily compare them. See what platforms have the features your business needs and how other companies like yours have fared with them.
But finally -
"Nothing beats being able to test drive a platform for free."
Do all your contract management in PSOhub
Efficiency is key! PSOhub has all the above features we discussed and more to help you optimize your contract management and keep more of your work in one environment. PSOhub lets you manage your contracts in the same place you manage your projects. And with killer integrations, its AI can adapt to and learn from other environments you use already, like HubSpot. Read more about PSOhub for Contract Management here.
Try it for free, especially if you’re in the market for a high-value contract management solution for small business. And your biz uses HubSpot, you’ve just hit the jackpot.