Digital Contracts – a Future That Has Become a Reality
With automation on the rise, Paper contracts are a thing of the past. Digital contract signing increases efficiency, allowing businesses to keep up with their competitors.
The Benefits of Digital Contract Signing
COVID-19 has increased the need for technology in the workplace. Since then, the use of e-contracts has skyrocketed because of their efficiency. Digital agreements are no longer a gimmick. If you want to conduct business in the modern world successfully, you need to know about digital contracts’ nuances.
What is a digital contract?
An e-contract is created and signed electronically, meaning companies don’t have to worry about paper documents. The use of digital contracts has been on the rise for the past 20 years and has become more popular since COVID-19’s regulations.
Many companies now use them daily since they are the most convenient way to establish business agreements.
Are digital contracts legal?
The Electronic Signatures in Global and National Commerce Act (ESIGN)
The ESIGN Act is federal legislation that was created in 2000. The act made most digital contract signings as legal and enforceable as the traditional paper version.
the Uniform Electronic Transactions Act (UETA)
All states have adopted the UETA or other e-signature laws. These laws establish that digital contracts are legally binding, similar to the federal legislation of the ESIGN act.
What special features does digital contract software have compared to paper management?
Real-time collaboration
The real-time collaboration features integrated into contract management software allow all partners to contribute to the proposal simultaneously. Eliminating the time-wasted sending documents back and forth shortens the agreement’s life cycle, meaning you can close deals faster than before.
Business solutions integration
It can be challenging for teams to transition to new software. Solutions integration makes switching to digital contract software easier. Most digital contract apps integrate with the solutions they are comfortable with, such as SalesForce, Okta, Google Drive, and more.
Digital contract template options
When using paper to make business agreements, you have to input all elements, causing delays. With contract management software, you can use a pre-made template or create your own to auto-fill information on documents.
Single contract repository
Organization can be a nightmare with paper contracts. Companies waste time searching through file cabinets for the correct document; contract management apps make this a thing of the past.
Many apps feature a repository where you can store your digital agreements to keep track of them easily.
Digital contract signing
Manual contract signing lengthens the contract cycle, meaning less efficient deal closures. E-signatures streamline agreement signings by immediately sending over ready-to-sign documents, so you don’t have to wait for a physical signature.
Why is it worthwhile to switch to digital contracts?
Strengthen partnerships
At the core of every business, a venture is a contract, making the agreement process vital for a strong relationship. Automation can improve partnerships through digitalizing the agreement process by making it convenient and straightforward for all stakeholders, leading to increased negotiation success.
Increase productivity levels
Manual contracts are time-consuming, causing productivity levels to suffer. If you want to increase profits and efficiency, you should implement contract software solutions into your workflow. Automation boosts productivity by streamlining all of the agreement stages.
Reduce errors
Human error is an inevitable consequence of reaching agreements manually. Erroneous contracts may lead to a faulty deal or, worse, a document that’s not legally binding.
The software minimizes mistakes by automating these processes and bringing possible errors to your attention.
Meet deadlines
It can be easy to miss critical deadlines if your company handles multiple deals a day. Missed deadlines can be costly and decrease efficiency by slowing the contract’s life cycle. Digital automation software gives you the option to receive notifications when important dates are coming up, so you won’t miss the chance to renew or terminate agreements.
Final thoughts
How can you make transitioning to digital contracts easier?
Choose a reputable provider
There are many trustworthy providers to choose from since e-contract tools have been around for decades. Agencies such as DocuSign, PandaDoc, and Concord have established themselves as some of the top providers.
Start small
After deciding that you want to switch to an automated process, you and your colleagues should identify low-risk opportunities to test out the software. Consider options such as internal documents and engagement letters to try out e-contracts.
Integrate into existing workflows
Transitioning to new software is more manageable when users can keep the workflow processes they’re comfortable with. Solutions integration lets your employees switch to digital contracts at their own pace.
Digital contracts are the future of business deals. It’s easy to see why many businesses have transitioned to paperless contracts; they make processes convenient, simple, and efficient. If you want your company to keep up with the competition, you should implement e-contracts to stay ahead of the curve.
