Legal agreements are an essential part of many industries, including manufacturing, telecom and energy. Contract database software allows organizations to have one central “vault” to place all documents for easy retrieval. But more than that, oftentimes it has additional functionalities like searching and versioning. But how are such applications actually used? What workflow is recommended for most use cases?
Make and Seal the Deal
Once negotiations are complete, a contract is drafted and presented to both parties. The parties ratify the agreement by signature, which can be done by hand or in some cases, electronically.
File Electronically
A scan or electronically signed copy of the agreement can at this point be entered into a contract database. Other attributes will be tagged along with the file, such as date uploaded and other metadata. Contract database software automatically handles these details, making electronic filing fast and user-friendly. Some solutions have user-defined fields that you can use to enter details such as options, expiration dates, and financial details. When there is supporting documentation that the agreement makes reference to, this can also be uploaded and stored with the main record.
File Physically
After providing copies of the contract to the invested parties, the original copy goes on file. Depending on the organization, this can be in a central place like a legal room or cabinet.
Remember the Option Date
Thankfully, you don’t have to remember important dates and deadlines – the application handles that for you. However it is useful to save key dates elsewhere, especially to not miss the right opportunity to contact a client. Some contract database software packages make it easy to create appointments in your existing electronic calendar, with reminders so you don’t forget a key date.
Pay the Recurring Charge
Never miss a due date thanks to electronically managed agreements tied in with a calendar application. Avoid late fees and other troubles by staying on top of recurring charges and paying them always on time.
Enter the Charge
At this point, you are ready to enter charges into an accounting application. Doing this as soon as the charge is made helps accounting staff see the complete state of finances at any given moment. Depending on the applications you use, this process can be automated.
Contract database software can make an organization consistently more profitable and better suited to grow. Minimizing human error and keeping documents in a central location increase efficiency and benefit operations. Numerous organizations attest to the fact that the implementation and employee training on contract database software is well worth the investment.
