Since contractual agreements with suppliers and customers drive earnings, improved contract process controls--and enhanced management of contracts--are both essential for preventing exposure to restatement risks. Yet, all too often, companies view contract management as a tactical solution, not a strategic one. As a result, top level executives seldom get involved in purchase decisions, and, even less frequently, drive such projects. This is an unfortunate situation since the savings gained by eliminating restatement risks can be so significant, as to completely justify an investment in a contract management solution.

With a contract management solution, companies working to eliminate restatement risks can:

• improve their public image;
• dramatically reduce costs associated with generating earnings reports;
• establish more complete and easily accessible documentation to support earnings statements;
• achieve greater internal visibility to the revenue information required for optimized business management;
• gain an ability to more easily implement contract process controls.