It comes with no surprise that contract management requires several skills. In essence, contract managers are meant to think like consultants, wherein they’re encouraged to find the root cause of every issue.
Consultants are known to find every root cause in defective processing, and once they identify this, they can create necessary changes in the system, ensuring that every “symptom” is addressed.
Although contract data management systems are available and have streamlined contract management processes, many still make many mistakes. With that, we’ve compiled a list of contract management mistakes that you should avoid helping improve your contract management processes.
Mistake #1: Relying on Paper-Based Systems
There’s nothing wrong with relying on paper-based systems, but relying heavily on them and not addressing the major issues of this process can affect your team’s operations.
Paper-based systems can lead to major financial blunders, such as project delays, which could easily be prevented by using a contract management system. With this, you can set up pre-approved contracts and automation, cut down on operating expenses, and mitigate cost-related issues.
Mistake #2: Lack of Version Management
It won’t be much of a surprise when dealing with contracts if you’ll be presented with a wave of variations for different contracts. And with that, many make the mistake of putting in sensitive variables that could affect the validity of every contract.
With a contract data management system, you can keep versions of working documents to access and edit them accordingly. With that and by integrating internal auditing, you’ll lower the risks of mistakes and delays.
Mistake #3: Failure to Automate Compliance
When you don’t automate company compliance, it may affect your finances to calculate your cash flow, income values, and earnings. When this happens, your company may be at risk for an audit and other complex financial issues.
But with a contract data management system, you can streamline and automate processes, allowing you to get a full audit and maintain compliance standards.
Mistake #4: Providing Full Access to Data
You must limit the access to critical documents to only those who need to have access. When there are too many people who can access certain documents, it won’t only be overwhelming to track revisions, but lack of security and accountability can be huge problems as well.
When you have the right system, only specific people will have access to various documents, allowing you to track the changes made for each client. With that, you can ensure that there is accountability and connect with the right team member, should there be any issues.
The Bottom Line: Avoid These Issues With the Right Contract Management Software
We’re cruising in the digital age and what’s great about it is that there are effective solutions that can help streamline workflows and eliminate management mistakes. Having the right contract data management system won’t only help improve your business’s operations, but it can also encourage your team to be more productive, aware, and responsible team members.
How Can Anapact Help You?
Are you looking to improve your contract data management system? If so, you’ve come to the right place.
Anapact is a contract management software design to create contract management solutions for small and mid-sized businesses. From reducing risks to ensuring compliance—we’ve got you covered.
Learn more about how our software can help your business today!