As an SME, contract management is an important part of your business. However, mistakes can be costly and have far-reaching consequences. In this blog post, we’ll discuss the 10 most common contract management mistakes that SMEs make and provide tips for avoiding them. By following these tips, you can improve your contract management process and avoid costly errors.
- Not Having a Clear Process: One of the biggest contract management mistakes is not having a clear process in place. It’s essential to establish a standardized process for creating, approving, and managing contracts to ensure consistency and prevent errors.
- Not Reading Contracts Carefully: Another common mistake is not reading contracts carefully. Failing to review contracts in detail can result in missed deadlines, overlooked clauses, and compliance issues.
- Poor Communication: Poor communication between stakeholders can lead to confusion, delays, and errors in the contract management process. To avoid this, it’s important to establish clear lines of communication and ensure that all stakeholders are informed and involved.
- Lack of Visibility: Lack of visibility into contract status, expiration dates, and renewal terms can result in missed opportunities and increased risk. Using a cloud-based contract management solution like Axsar Contracts can provide you with real-time visibility into your contract portfolio, ensuring that you never miss an important deadline.
- Inadequate Record Keeping: Inadequate record keeping can result in compliance issues and legal disputes. It’s important to keep accurate records of all contract activity, including changes, approvals, and signatures.
- Inadequate Contract Review: Inadequate contract review can lead to missed clauses, errors, and compliance issues. It’s important to involve legal and subject matter experts in the contract review process to ensure that all legal and regulatory requirements are met.
- Not Monitoring Performance: Not monitoring contract performance can result in missed opportunities and increased risk. It’s important to monitor contract performance regularly and address any issues promptly.
- Not Using Technology: Not using technology to manage contracts can lead to inefficiencies, errors, and missed opportunities. Using a cloud-based contract management solution like Axsar Contracts can automate contract processes, improve collaboration, and provide real-time visibility into your contract portfolio.
- Not Training Staff: Not training staff on the contract management process can result in errors, delays, and compliance issues. It’s important to provide adequate training to all staff involved in the contract management process to ensure that they understand their roles and responsibilities.
- Not Having a Plan B: Not having a backup plan in case of unforeseen events can result in missed opportunities and increased risk. It’s important to have a contingency plan in place to address any unexpected issues that may arise.
In conclusion, avoiding contract management mistakes is crucial for SMEs. By establishing a clear process, reading contracts carefully, improving communication and collaboration, using a cloud-based contract management solution, and implementing proper training and record keeping, you can improve your contract management process and avoid costly errors. With Axsar Contracts, a customizable and scalable contract management solution designed for SMEs, you can streamline your contract management process and increase efficiency, while reducing risk and ensuring compliance. Don’t let common contract management mistakes cost you time, money, and opportunities. Take control of your contract management process today with Axsar Contracts.