Zycus recognized as a ‘Strong Performer’ in The Forrester Wave™: Contract Lifecycle Management, Q2 2023  Read More

Best Practices to Ensure Contract Compliance – Part 1: Establish Audit System for Internal Processes

Every organization strives to achieve compliance for their contracts. Establishing a smooth audit system for internal processes is one of the best practices to ensure your contracts are always compliant.

Conducting audits periodically will ensure adherence to various contractual terms and conditions and reinforce timely fulfillment of obligations. This, in turn, will facilitate effective enforcement of penalty clauses (for missed milestones of payment, etc.), identification of opportunities for cross-selling and up-selling of products and services, and an overall prevention of financial losses.

But there’s a major roadblock to efficient auditing—disparate data. Trying to consolidate and audit contract data spread across different geographies requires a huge effort

Contract Lifecycle Management (CLM) capabilities such as a centralized contract repository support the establishment of a smooth internal audit system, thereby simplifying contract compliance reporting. The repository stores all your contracts and supporting documents such as regulatory approvals, insurance certificates, and more. It is easily accessible to designated individuals and offers various search capabilities such as the free text and metadata-based search, while also maintaining an audit trail of who did what and when.

To make things easier, organizations must determine several key parameters of the audit process beforehand: time, duration, frequency, objectives, contract types under purview, and so on. This will ensure audit preparedness among the employees, streamline the entire process, and hence produce better results.

Increasing visibility and developing the necessary infrastructure and organizational commitment towards contract compliance is one of the key steps in embracing best practices. Having a system in place which measures internal processes and puts in plain sight what needs to be done, helps in achieving it.

To see more best practices for achieving contract compliance, check out this blog.

Contact us at info@zycusicontract.com to have all your contract compliance concerns addressed.


Learn about Zycus’s Post Award Contract Compliance Management Solution.


Willam Dyer is the Regional Vice President at Zycus, a leader in the Forrester Wave for Contract Lifecycle Management. William has spent more than a decade advocating CLM solutions for enterprises across geographies, making him a domain expert. He has successfully delivered ROI to numerous clients comprising legal leaders for Fortune 500 companies spanning different industries. In this stint in Zycus, his mandate is providing value and making a business case for global enterprises in the scope of a sales leader. His attention to detail and product expertise makes him the go-to person to strategize go-to-market plans.
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