Contract Management Software Keeps You from Overpaying

One of the most valuable advantages to implementing contract management software is the discovery of contracts for duplicative services and worse, outright overpayments. Continuing unnoticed, these errors can rob your organization of thousands of dollars and accelerate the road to fiscal distress.

Multiplying contracts that grow in complexity is a very familiar situation – and each of those contracts creates rights and imposes obligations for each party. The moral of the story here is contract compliance – but how are you supposed to keep track of all the different obligations across all the varied documents and agreements that help structure your business operations?

As mentioned in the most recent post in the Apex Expert Blog, “How to prevent millions from slipping through the cracks”, compliance can’t keep up with the numerous contracts because many companies have yet to setup a central contract repository. Well, at least one that’s more up-to-date than that dusty file cabinet in the back of the office.

There are plenty of stories and real-world examples out there of companies who have overpaid shocking dollar amounts all because there wasn’t a system in place to align contract terms with purchase orders and invoices. (The Apex Expert Blog post contains a few.) But here’s a testament to the upside of reducing such business risk: one small city recovered $70,000 in overpayments for expired contracts in the first six months after implementing contract management software, and an additional $200,000 in the next fiscal year.

A business case like that is compelling. Young businesses and start-ups should implement contract management software as an important part of building their infrastructure. More mature firms should take this same step to reduce existing risks and enable them to proactively manage their negotiated agreements. Who wouldn’t prefer the peace of mind of knowing the status of each contract in their organization rather than the harrowing day-to-day wonder when a missed milestone will cost them a significant sum of dollars?

A contract management software solution can not only store all your agreements digitally, but also enable CFOs, executives, and other administrators to realize a host of bottom-line benefits:

• Keeping all contracts current by attaching relevant documents and notes to the electronic contract file
• Launch automated emails and alerts for actions needed during and prior to the end of a contract term
• Meet contract deadlines, improving customer service to your vendors and internal stakeholders
• Review contract statuses well in advance, to research and prepare for renegotiation
• Maintain flexibility to cancel a contract in the required timeframe to avoid incurring penalty charges or increased escalation costs

If you’re currently in the market for a contract management software solution, consider Contract Assistant™. With Contract Assistant, users in organizations of all sizes can manage their contracts and negotiated agreements with confidence by quickly accessing information, generating reports, receiving automatic reminders of critical dates, and more. Contract Assistant is available in single-user Standard Edition, multi-user PRO Edition, and powerful, SQL-based Enterprise Edition.