Contract Management is vital for every type of business industry may it be healthcare, real estate, legal services, insurance, and engineering and construction. As a company expands, the need to integrate a more advanced system is crucial for the efficient management of its entire business operation.

Nowadays, more and more firms have been making a huge transition from the traditional and manually-operated system into automated contract management. Contract Management Software is just among the helpful cloud-based tools that countless business entities are opting to acquire for the convenience it offers. With a digital contract management system, companies are able to increase productivity, ensure compliance, and mitigate any hazards and risks.  

A few of the full-blown benefits of shifting into an online-based technology includes the capacity to administer and organise all the contracts through a centralised system, establish contract visibility, improve auditing processes, keep alert notifications for any approaching renewals and contract terminations, and enable closing of deals through e-signatures.

According to Wikipedia, Electronic Signature or e-signature refers to data in electronic form that is interconnected with other digital data which is utilised by the signatory to sign. Same with handwritten, e-signature is considered legal if it undoubtedly complies to certain standards and regulations.

There are a variety of good reasons why companies should consider the use of e-signature in their Contract Management. Below is a list of 5 logical bases which explain the importance of integrating e-signs in your business firms.

  1. Convenience

Obtaining a Contract Management Software allows company employees to collaborate in a single, user-friendly online platform which they can access from anywhere and whatever time they prefer. This provides the workers even those remote with each other with a streamlined contract processing system where they can freely edit and review contract documents. It can go to as much as even finalising or closing major deals and agreements with clients from overseas. This relieves the company from the inconvenience of conducting personal meetings. E-signs can be far-reaching for business entities who are actively engaged in contracting.

  1. Low-cost

Printing of contracts may be proven non-economical and is one of the major disadvantages of the standard contract management system. This is why a growing number of firms have been turning digital. With the online-based system, the companies are often saved from the exorbitant expenses allocated for the procurement of papers and inks that are used for the imprinting of these legal documents.

Most contracts are usually subjected to a series of reviews and amendments which leads to a repeat process of production of physical papers. This can be unreasonably costly for business enterprises, especially for small ones. However, there is now a variety of cheap Contract Management Software which even small-scale businesses can afford to purchase. Although some may require fees on a monthly or yearly basis, it is still worth the money since it got a handful of features helpful for optimising your company operations.

  1. Security

Contracts are considered to be one of the most valuable assets for all types of business entities. This is what makes it a necessity for companies to acquire a Contract Management Software. Apart from the convenience it brings, it helps keep these legal documents safe and protected compared to the standard contract management system. Physical papers are often prone to losses and damage since they are manually organised. This mismanagement can possibly put the business into peril since it contains the liabilities and obligations of the company and the parties involved. With the online-based system, contracts are well kept and managed.

Unauthorised personnel can also be restricted from access to these resources with the customizable feature of the Contract Management Software. With the e-signature feature, it makes it impossible to falsify or forge legal documents. Unlike handwritten signatures, e-sign secures authenticity of the contract with its three-dimensional thumbprint which verifies information of the person, place, and time which the document was signed.

  1. Faster transactions

Contract Management Software speeds up operations of any business firms. Since it has a centralised system, employees can perform transactions in less time and full ease. The online platform allows users to open, edit, and review contracts. This makes alterations of the specific section easily done if ever required.  The software also helps keep records and documents in separate folders so users won’t have difficulty browsing a particular file whenever they need.

Furthermore, the signing of physical papers can typically delay businesses especially when the clients are situated overseas or if schedules do not permit personal meetings. With the cloud-based system, sending of contracts and virtual signing are made possible. This is why business entities, regardless of the type of industry, ought to integrate e-signatures. Plain sailing operation and substantial growth are more achievable with the right contract management.