Contracts are the foundation of business operations, yet many organizations still rely on outdated tools like word processors to manage them. Our recent survey of 200 professionals revealed that 66% of businesses use word processors such as Microsoft Word or Google Docs to create contracts. While these tools are familiar, they often fall short when it comes to the complexities of modern contract management.
This reliance on word processors introduces inefficiencies, creates risks, and makes it harder for businesses to adapt to a rapidly evolving digital landscape. In this article, we’ll unpack the limitations of word processors for contracts, explore insights from the survey, and highlight how smarter contract management solutions can transform your workflows.
The widespread use of word processors for contracts
The fact that 66% of businesses still use word processors to create contracts underscores how ingrained these tools are in daily operations. For decades, tools like MS Word have been go-to solutions for drafting documents, offering flexibility and simplicity. However, their utility often ends there.
Our survey also found that many businesses transition contracts from word processors into non-editable PDFs for signing, further complicating the process. These manual workflows create inefficiencies that can have a ripple effect across your organization, slowing down approvals, causing errors, and delaying deal closures.
Read also: Your complete guide for contract management
What the data tells us
- Version control issues: 65.67% of respondents use email to review and edit contracts, often resulting in multiple versions being saved and shared. This leads to confusion about which version is the most current.
- Approval delays: 31.33% of businesses identified approval delays as a significant bottleneck, a problem exacerbated by the manual nature of word processor workflows.
- Storage risks: 17% of businesses store contracts on local drives, making it easy to lose track of key agreements and deadlines.
The inefficiencies of word processors in contract management
Word processors were never designed with contract management in mind. While they are great for drafting content, they lack the specialized features needed for tracking, collaboration, and compliance.
Key inefficiencies include:
- Version control problems
With word processors, version control is a constant headache. Every change to a document results in a new file, often shared via email. This method makes it difficult to determine which version is the most accurate, leading to potential errors and unnecessary delays. - Lack of real-time collaboration
Unlike modern platforms that allow multiple users to work on a document simultaneously, word processors require users to take turns making changes. This slows down the process and increases the risk of miscommunication. - Manual tracking challenges
Word processors don’t offer built-in tools for tracking contract statuses, expiration dates, or renewal deadlines. This forces teams to rely on spreadsheets or calendar reminders, increasing the risk of missed deadlines and lost opportunities.
The impact on business operations
The limitations of word processors aren’t just inconveniences — they can have a tangible impact on your business’s bottom line.
Delayed deal closures
According to our survey, 39.67% of businesses take one to two weeks to finalize a contract, and 7.33% report it takes over four weeks. These delays can frustrate clients, slow down revenue generation, and give competitors an edge.
Compliance risks
Storing contracts on local drives, as 17% of businesses reported, creates vulnerabilities in terms of data security and compliance. Regulations like GDPR require businesses to have control over personal data flows, and manual processes make it harder to ensure compliance.
Wasted resources
Manual workflows consume time and energy that could be better spent on high-value tasks. Legal teams, for example, often spend hours reviewing contracts for errors or inconsistencies, time that could be saved with automation.
Why businesses are shifting toward smarter solutions
Recognizing the inefficiencies of word processors, many organizations are making the switch to contract management platforms. These tools are designed specifically to address the complexities of modern contract workflows, offering features that streamline processes and reduce risks.
Read also: 10 best contract management software in 2025
The benefits of modern contract management platforms include:
- Real-time collaboration
Platforms like these enable multiple users to work on the same document simultaneously, ensuring everyone is aligned and reducing the back-and-forth common with email exchanges. - Automated workflows
Approval processes can be automated, eliminating bottlenecks and ensuring contracts move through the pipeline quickly. This addresses the 31.33% of businesses struggling with approval delays identified in our survey. - Centralized storage
Contracts are stored in a secure, centralized repository, making them easy to find and track. This solves the problem reported by 17% of businesses storing contracts on local drives, ensuring nothing gets lost or overlooked. - Tracking and reminders
Built-in tools for tracking expiration dates and renewal deadlines ensure businesses never miss a critical milestone. According to our survey, 32.67% of businesses still track expiration dates manually, a practice that is both time-consuming and error-prone.
External research supports the benefits of transitioning to smarter contract management solutions. According to a study by Forrester, businesses that adopt contract lifecycle management (CLM) software can reduce contract approval times by 82%.
Additionally, Procurement Tactics reports that automation of contract processes can cut administrative costs by up to 30% and reduce the risk of contract disputes by 60%.
These findings highlight how modern tools not only save time but also reduce risks, improve compliance, and enhance overall efficiency.
How to make the transition
If your organization is still using word processors for contracts, now is the time to rethink your approach. Transitioning to a contract management platform doesn’t have to be overwhelming.
Here are some steps to get started:
- Assess your current workflows
Identify the pain points in your current contract processes, such as version control issues or missed deadlines. - Choose the right platform
Look for a solution that integrates with your existing tools and offers the features you need, such as automated reminders and centralized storage. - Train your team
Ensure that all team members understand how to use the platform effectively. Provide training sessions and ongoing support to facilitate adoption. - Monitor and optimize
Regularly review your new workflows to identify areas for improvement and ensure the platform is delivering the expected benefits.
Conclusion
While word processors have long been a staple of contract management, they are no longer equipped to meet the demands of modern businesses. As our survey findings show, the inefficiencies of these tools can lead to delays, errors, and unnecessary risks.
By transitioning to smarter contract management solutions, businesses can streamline workflows, improve collaboration, and ensure compliance. The result is a faster, more reliable process that saves time, reduces costs, and positions your organization for success in a competitive market.
Don’t let outdated tools hold your business back. Take the first step toward better contract management today.