What is contract management software?
Contract management is the process of managing contracts as they move through different stages, from creation to execution and post-execution. Modern businesses are adopting contract management software to automate this process, making it more efficient and effective. These digital tools come with robust capabilities, such as automated contract authoring, customizable workflows, and digital signatures that help businesses simplify their contract management process. It also provides a central location to store contracts, improving visibility and control over the process.
Why is it important to choose the right contract management software?
- To ensure that the tool's capabilities align with your industry needs, meet business-specific contracting requirements, and resolve your pain points effectively.
- To glean valuable insights into contract performance, cost savings, and revenue growth, allowing you to track and optimize your financial outcomes.
- To ensure scalability and adaptability of the software to suit your evolving contracting needs. This eliminates the hassle of switching to a new system in the future.
- To prioritize security and compliance with features such as role-based access controls, data encryption, audit trails, and adherence to industry and regulatory standards (e.g., GDPR, HIPAA, etc.).
- To safeguard your company's reputation and win the trust of clients and partners by utilizing a CLM tool with proper risk management features.
How can freemium plans help you choose the best contract management software?
Evaluation
Free contract management software allows you to test multiple use cases and evaluate the tool's effectiveness in fulfilling your business-specific needs.
Accessibility
A no-cost option makes it accessible to more businesses, particularly those on a limited budget. Most freemium plans allow you to add peers and explore the product.
Product familiarity
Freemium plans help you become familiar with the tool's interface, features, and functionality. This familiarity makes upgrading to the paid version easier if you find the software to be a good fit for your needs.
Comparison
Trying out a number of free contract management software enables you to compare different tools and their features, which helps you make an informed decision and select the best software for your contracting needs.
Who can benefit from free contract management software?
Small businesses, startups, and individuals with limited contract management needs and budgets.
Users who want to explore the CLM solution’s features and benefits before investing in a paid solution.
Remote teams or individuals who require basic contract management features such as contract drafting, storage, and sharing.
Essential features to look for when choosing a contract management software
- Template and clause management
- Built-in document editor
- Advanced document assembly
- Customizable workflows
- Real-time collaboration
- Granular activity tracking
- Controlled access for counterparties
- Online redlining capability
- Document version control
- Comparing changes between versions
- Real-time activity monitoring
- Negotiation summary
- Configurable signature workflows
- Native e-signature capability
- Obligation management
- Alerts and notifications for contract milestones (renewals, extensions, and terminations)
- Automated document generation for amendment letters
- Centralized contract repository
- Activity tracking system
- Flexibility to customize tool
- Integrations and APIs
- Self-explanatory guides and demo videos
How does contract management software benefit businesses?
Streamlined contract management
Typically, businesses use multiple applications to manage the various stages of the contract lifecycle. Implementing an all-in-one contract management software eliminates the need to toggle between different applications.
From contract authoring to execution and beyond, the CLM tool simplifies the contract management process with automated approval workflows, smooth negotiation, digital signatures, and activity tracking.
This saves time and resources, allowing businesses to reduce administrative workload, improve productivity, and focus more on revenue-generating activities.
Reduced business risk
Risk is an inevitable aspect of the contract management process. From using outdated contract templates for authoring to overlooking obligations and missing contract renewals, there are numerous potential pitfalls that businesses can stumble into when managing contracts manually.
These issues can lead to damaged relationships, missed revenue opportunities, and unanticipated risks. However, the good news is that comprehensive contract management software can come to the rescue.
It automates and simplifies the entire contract management process, enabling you to avoid oversights and mitigate risks. It allows you to proactively manage your contracts while minimizing breaches and strengthening business relationships.
Improved contract governance
Implementing the right contract management software helps to improve compliance and governance by offering the following capabilities:
- Configurable approval workflows ensure better governance by allowing stakeholders to stay aware of potential risks and opportunities.
- A central audit system helps admins stay on top of all contract activities, with better control and improved accountability.
- A centralized contract repository holds all contracts in one place, providing improved visibility and accessibility.
- Analytics and reporting capabilities help to quickly identify contracts that require changes due to new regulations or company policies and implement them promptly.
Free contract management software—Zoho Contracts
Zoho Contracts is a simple, yet comprehensive contract management software designed for businesses of all sizes. By providing a robust, tailor-made platform, Zoho Contracts alleviates all of the bottlenecks in your contract management process and positively transforms your legal operations by:
- Streamlining the entire contract lifecycle
- Improving governance
- Mitigating business risks
- Promoting cross-functional integrations
Sign up for the free version of Zoho Contracts today and see how it can help improve your contract management process. Check out our pricing details here.