How Contract Management Solutions Benefit Small Businesses

Running a business is hard work, especially in the early days when there are likely just a few staff members and bank accounts are on the smaller side. But, thanks to technology, there is no reason that limited personnel and capital have to be a hindrance anymore. Regardless of whether a company has a designated contract management team or several of the leaders help oversee the company’s contracts, there are solutions available that can drastically facilitate the management process. Here are 4 ways small businesses benefit from a contract lifecycle management solution:

Centralized Records

As mentioned and as startup founders know all too well, a lot of small businesses have fairly tight budgets. Depending on where the business is located, a lack of extra capital often means a lack of office space given the exorbitant cost of commercial real estate, especially in bigger cities. Of course, in addition to a lack of space, most companies now prefer to have a paperless office or at least keep printing and hard copies to a minimum. An online contract management solution is incredibly helpful for small businesses, as it eliminates the need for storage space and makes it much easier to keep all contracts and related documents stored in one central location. This obviously helps companies save a good amount of money since there will be no need for storage closets, file cabinets, or any of the other bulky furniture or equipment needed for paper documents.

Meticulous Organization

Once all of a company’s contracts have been uploaded into a central repository, it also becomes a lot easier to organize things into different folders and subfolders. There will likely never be the need to flip through documents looking for a certain clause, and even signing contracts or any addenda thereto can all be done via the online contract management system. This centralization and automation will no doubt save countless precious hours, as everything can be quickly saved, retrieved, and searched. Time is an invaluable resource for everyone, but it is often quite scarce for smaller businesses when just a few people must wear so many hats.

Seamless Collaboration

Even though small businesses can certainly handle many phases of the contracting process, it is often necessary to recruit the help of external professionals. This is almost always necessary during the drafting phase, as input from legal counsel will prove vital in ensuring that risks are mitigated and liability is allocated fairly. In addition, accounting teams and compliance professionals may need to sort through contractual matters at some point in the business’s existence. All of this will necessitate the sharing of contract data with these professionals, and this is safer and easier to effectuate when utilizing a purpose-built contract management solution. Access to the contract repository can be granted both quickly and temporarily, allowing for seamless collaboration.

Effortless Data Protection

Data security is more important than ever irrespective of a company’s sector or size. If a company has employee records, client data, intellectual property, or any other type of data of value, it is imperative that it take steps to safeguard it properly. Assuming that a small business is not a target or that the data to which it has access would be foolish and downright erroneous. The great thing about online contract management is that it allows for essentially effortless data protection. Of course, this is only true when implementing a solution that values privacy and data protection and incorporates strong security measures into its system. To ensure that data is protected, small businesses should be sure to invest in a system that offers measures such as encryption and two-factor authentication.