For those who had any doubt whether finance teams should care about contract management, IACCM reports that 9 percent of annual revenue is eroded due to contracting problems, like missed milestones. Finance teams face a complex array of challenges when it comes to contracts. They carry the responsibility of financial profitability, on-time payments, and pricing changes. But managing all of this without contract management software to provide reminders and reports is nearly impossible. If you have grappled with any of the following questions, keep reading because there is hope:
Questions to Ask Yourself
- How much are contract penalties costing us?
- Who is paying attention to pricing changes and timely renewals?
- Are these contracts even profitable?
- Did we accidentally miss any contract payments or collections?
- What approved clauses can I use without asking legal?
Clearly, just because a contract is mutually agreed upon, doesn’t mean it is mutually beneficial. There are numerous ways a contract can erode profit margins. Missed contract commitments can incur financial penalties, and auto-renew clauses that go ignored can lock parties into unwanted agreements, impacting the bottom line.
Contracts for the Win
Malbek Contrax makes it possible for Finance teams to properly structure contracts, safeguarding contract profitability. Through automation, intelligence, and reminders, Malbek Contrax makes it easy to stay on top of payments and price changes and reduces the worry of missing key financial terms. In addition, Malbek’s powerful AI can help you identify terms that make contracts more financially beneficial so that success becomes a more repeatable process.
Never Miss a Milestone
Missing a contract commitment can be very costly. Whether you get locked into an unwanted agreement through an auto-renewal or incur a penalty from a missed payment, with Malbek you will never miss a contract obligation again. Plus, you won't have to worry about the financial costs and penalties that can come with these oversights.
The Price is Right
It's far too easy to overlook pricing changes over time in contracts that could actually benefit your company. These revenue opportunities need to be closely monitored, and with Malbek's solution, you can stay on top of pricing changes built into the contract terms, reaping the financial benefits of price increases.
AI to the Rescue
When it comes to contract management, the power that Artificial Intelligence (AI) provides is truly remarkable. AI makes it possible to understand if a contract is actually financially beneficial based on the other active agreements you have in place. And it can help you eliminate high exposure financial terms in contracts by alerting you to less risky, more preferred alternative terms and clauses.
You can learn more about how contract management fortifies finance teams here.