A revenue contract management software does more than just organize your contracts. It helps businesses trace all contract information, track revenue and spending, stay ahead of renewals and monitor compliance. Poor contract revenue management can result in numerous hazards and can hurt your business financially.
Did you know that a business can lose 9% of annual revenue because of poor contract management? Yes, that’s right, you might not know it but many companies who do not manage their contracts can lose revenue.
These risks arise when you have difficulties locating important details. Contracts could have been misplaced and you still have to spend hours looking for contracts or details. There is also the possibility that you have to make computations when gathering data, and of course, mistakes can be made during that process.
Further examples of missing contracts can lead to forgotten renewal dates, penalties, and unenforceable contracts. There will be various miscommunications if you do not keep track of your contracts and have visibility of all the important information. All of which can result in revenue loss because you can lose the trust of your customers and clients, processes will be slower, and time will be wasted.
A contract revenue management software can eliminate these risks for you.
What is Contract Lifecycle Management?
A contract lifecycle management is a process that helps you manage and track every stage that a contract goes through. The CLM consists of these stages:
Step 1: Contract Creation
Step 2: Reviewing & Redlining
Step 3: Approval
Step 4: Execution
Step 5: Storage
Step 6: Records Management
Step 7: Search & Retrieval
Step 8: Audit & Reporting
Step 9: Renewal / Disposition
CLM is the process of keeping track of an organization’s contracts from the time they are made to the time they are renewed or end. Contract lifecycle management software makes it possible to manage contracts in a way that is both effective and proactive. CLM software can result in considerable cost reductions and efficiency gains. Understanding and automating CLM may help reduce a company’s risk by cutting down on missed tasks and increasing compliance with regulations.
Why is a Revenue Contract Management Important?
Contracts are the foundation of any business. They bring an understanding to your employees, vendors, customers, and clients. It helps everyone see the terms of your agreement so that everyone knows their rights and responsibilities within your time together.
There are multiple reasons why revenue contract management software is important to your business and can help increase revenue.
1. Lessen Financial Risk
Financial Reports: Get access to our growing spend and revenue management reports, or leverage our managed services for custom reports, delivered when you need it.
A contract management software gives you advanced features that you wouldn’t be able to achieve with just a pen and paper. The software allows you to upload all your contracts onto one platform so you have clear visibility of the costs, payments, and other important details. You can then use tools to help you manage revenue and costs from your contracts. Resulting in efficiency and lessening financial mistakes.
2. Speedy Approvals
eSignature: Send contracts for review and signature, file them in a smart repository, and extract contract metadata to make data-driven decisions.
So many companies spend time, money, and energy on approving contracts. For example, you would have to send it to someone for them to approve and sign it, then send it back. This includes printing and traveling to the next person or making sure it is processed during work hours so it must be done within the time span. However, digital contracts on contract management software mean that everyone who needs to be involved can already see the contract as soon as it is uploaded and updated. The person can then make reviews, edits, or comments to improve the contract. Finally, it can be approved faster once the party has access. You can even use e-signature to avoid printing.
3. Faster Negotiations
Negotiations can take time. One way of speeding up the process of negotiations is to have all your contracts on one platform. When your contracts are easy to access by all your team members they can edit and review in real-time making it convenient and faster to smoothen out the terms of the contract. With this, you can cut costs, time, and operations.
4. Renewing Contracts
Alerts & Notifications – Stay ahead of contract renewals and negotiations with Smart Alerts and never miss a renewal again.
AI-based software can allow you to automate your contracts. This means that contracts can be renewed on time. Your team no longer has to worry about going back to the contracts and checking for renewal dates or processing the renewals because it can be done right away. This moves the focus of your team to other important matters.