Finance is the language of business. From the way your org generates revenue, to the costs incurred along the way, the capital flow unifies the work of all teams. CFOs don’t just manage numbers or deliver a clean book with good controls. They leverage numbers to lead the organisation in making sound decisions.
This is why CFOs are increasingly turning to Contract Lifecycle Management (CLM) systems to meet the growing demands of the role. Not only does it give leadership a clear overview of all commitments at the source and with a tool to execute on them fast; it provides them with the clarity of mind to lead the organisation. Here’s a clear look at why CLMs are gaining support among finance leaders.
A CLM system keeps all contracts in one place. This makes it easier for finance teams to track payment dates, monitor obligations, and see upcoming costs. Having this information in one dashboard helps in planning budgets and managing cash flow.
Whilst ERP systems like Exact Online or Moneybird are crucial in understanding the financial position of the company, a CLM system is a perfect complement. Not only do systems like Docfield integrate with CRMs to bridge important data, they also ensure their accuracy at the contract level. Working with clean data is a must for all CFOs.
Contracts can include complex terms and hidden risks. On the one hand, teams work tirelessly to ensure each contract contains the right provisions. By operating a CLM, CFOs can rest assured that parties are actually fulfilling their obligations. In other words: how do our expectations track against actual performance? Does this match what we see in the ERP? From workforce planning to pipeline analysis, CLMs can summarise critical contract data easily.
The Docfield CLM automatically checks for important dates, renewal terms, and compliance issues. This helps avoid missed deadlines, potential fines, or other financial penalties.
Overall, this is another reason why CLMs are a great tool to reduce risk for CFOs by removing the separation between data gathering and execution.
Many companies use several software tools to manage their finances. Modern CLM systems work well with common financial tools like ERP and CRM systems. This means data moves smoothly between systems, cutting down on manual work and errors.
The Docfield system can integrate with many of your favourite tools, including Hubspot, Salesforce, and Zapier
CLMs handle everyday tasks such as sending reminders for contract renewals or approvals. By automating these steps, employees can focus on more important and high-level tasks rather than being bogged down by repetitive admin work.
Sales teams reduce the turnaround time of their contracting phase by up to 80%. By drastically reducing the time to revenue they ensure better terms and fewer last-minute drop-offs. Whilst this is great news for chief commercial officers, it helps CFOs bolster the company’s financial position by improving cashflow and maximising deal size.
As a company grows, so does the number of contracts. Whilst sales leads the charge on revenue generation, procurement teams work hard to protect every penny that leaves the business. A good CLM system makes managing 1,000 contracts as easy as managing 10. CFOs recognise the importance of a CLM in uniting these units into a well-oiled machine and preventing unnecessary bottlenecks. The Docfield CLM offers integrated workflows and approvals, which speed up turnaround times on contracts. Aside from this, centralised templates can push changes on newly approved legal language or terms, and push these changes out to thousands of contracts in one go. The Docfield system scales with your company.
A CLM system makes it easier to see where money is going, and at a level that many ERPs do not. This is not to suggest that CLMs will replace ERPs, but they offer CFOs useful insights using contract data. For example, you can analyse exactly where your software spend is going (i.e. which contracts), when these contracts renew, and which contracts you could consolidate to generate savings.
Operating an ERP will show you how much you’re spending on software. A CLM will provide you with the tools you need to streamline your operations!
Aside from this, the Docfield CLM will in itself generate direct savings for your business, like lower administrative costs from streamlining operations. Reach out to us, and we’ll be happy to help you review just how much you’d save!
It's hard to track inconsistencies in terms and conditions across thousands of commercial contracts. Oftentimes this results in money being left on the table.
Data from past contracts can provide useful insights for new negotiations. By understanding previous trends, CFOs can secure better contract terms and payment schedules that favor the company’s financial health.
With Docfield CLM you can also lock away clauses and make them non-negotiable, providing a key strategic advantage going into difficult discussions.
Reliable support means quick help if there are any issues or questions. Customers prize Docfield for its stellar customer support and quick turnaround on issues. With a 99%+ uptime guarantee and no incidents in over 12 months, Docfield ensures its CLM operates smoothly across the board!
Contracts often include sensitive information. CLM systems like Docfield use strong security measures like encryption and multi-factor authentication to protect contract data. Further, the Docfield system equips users with to restrict access even down to the clause level. This makes approving changes a breeze, and also prevents unauthorised users from accessing critical information. This reassures CFOs that both financial details and contract information remain secure.
Financial planning and analysis is a critical component of the finance function. It will tell you where you are going, but in itself does not change the course of your organisation. Financial planning is your windshield.
The same way that you do not control the direction of your car with a windshield, CFOs need to see clearly but also respond. Modern CLM systems help CFOs respond proactively to current business needs, whilst maintaining an unprecedented level of agility.
CFOs have a vested interest in the way the business thinks about its long-term contracts, as it provides predictability. Whilst, on the one hand, that is desirable, it also leads to restrictions. Long-term contracts prevent CFOs from responding with agility. Working closely with legal counsel and leadership, top CFOs take control over their long term strategy by connecting the dots between their ERP, CRM, and CLM.
CFOs are finding that CLM systems offer practical benefits: better tracking of contracts, reduced risk, streamlined processes, and clear cost management. These systems make it easier to manage financial commitments and plan for the future. If you’re interested in a system that can simplify contract management and support sound financial decisions, exploring a CLM solution could be a smart next step.