Mitigating The Risk Of Not Using Source-To-Pay Contract Management Software
Contract Management Software
When it comes to sticky procurement matters, software-enabled contracts are almost essential. Source-to-pay contract management software can dramatically reduce risks and costs, while expediting companies payment process. Without it, organizations may succumb to myriad of threats they could have otherwise avoided.
Unscheduled Expenses
When utilizing robust source-to-pay software, companies are able to set reasonable, agreed-upon payment terms. This greatly reduces late payments and the risk of incurring hefty fines for nonpayment. Conversely, without contract management software, companies may find themselves frequently paying late charges, or at times, defaulting on payments altogether.
Furthermore, to avoid taking on additional payments or expenses, companies should consider other capabilities of source-to-pay software. Rich functionalities like the ability to track contract open accruals and approve transactions can help avoid sizable financial discrepancies in cases where expenditure exceeds budget.
Wasted Time
Timely payments and checks-and-balances are both pivotal aspects of contract management; however, other factors should be thoughtfully taken into consideration. With source-to-pay software, C-level executives can easily scan past documents, keeping abreast of changes as they happen. Documentation is safely encoded into the system, eliminating time wasted and reducing risk of confidential information falling into the wrong hands.
Complying with Complex Laws and Regulations
Organizations indulge in global contracts may be more susceptible to running afoul of complex laws and regulations. As international and nationwide legislation become increasingly nuanced, source-to-pay software can help organizations keep their wits about them. Suitable source-to-pay tools come with automated tools that help to verify compliance with industry specific as well supplier specific regulations.
Without contract management software, companies will likely find it nearly impossible to ensure secure contract management and consistent internal and external compliance.
Conclusion
The implementation of source-to-pay software aids companies in not just managing, but also protecting their contract data, reducing risk of costly errors, and preserving data integrity. CFOs and other personnel must understand the importance of utilizing software for their contract management operations to ensure cost savings and timely, compliant payments.
