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The Freelancer Magazine

Still Using Word for Contracts? There's a Better Way (2026)

Word handles document formatting, but contracts need more than a printed page, and Word contracts have no e-signatures, no version control across parties, no automatic project creation, no connection to invoicing, and only 11% of businesses rate their contract management as effective, while companies lose 8-9% of annual revenue from poor contracting.

Plutio contracts sign digitally, track every version, and create projects automatically. E-signatures work from any device with a full audit trail, the signed contract links to the proposal and project record, tasks and timelines activate on signature, and clients access contracts, deliverables, and invoices from a branded portal.

Last updated February 2026

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Common questions about Word vs Plutio for contracts

Can I create contracts in Microsoft Word?

Word handles contract drafting with full formatting control, templates, and track-changes for collaboration. The limitations appear after drafting: Word contracts need a separate e-signature tool like DocuSign for legally binding signatures, have no tracking for key dates or obligations, and can't connect to the project the contract governs. The signed file becomes a static document in an email thread.

Are Word signatures legally binding?

A signature drawn or typed in Word lacks the audit trail, signer verification, and timestamps that make e-signatures legally binding under the ESIGN Act and eIDAS regulations. Word's built-in signing options work for informal approvals but don't provide the evidence of signing intent tied to the specific document version that courts require for binding agreements.

Is Plutio better than Word for contracts?

For contracts that need to get signed, tracked, and connected to the project work, Plutio covers what Word can't: built-in e-signatures with audit trails, version control without filename confusion, automatic project creation on signing, and direct links to proposals, invoicing, and client portals. Word handles formatting and clause editing but needs DocuSign, a project tool, and an invoicing tool to complete the workflow.

Can clients sign contracts in Plutio?

Plutio includes built-in e-signatures with a full audit trail: signer identity, timestamps, IP address, and document version at the time of signing. Clients sign from any device with one click through a branded portal. No DocuSign account needed, no PDF downloads, no print-and-scan workarounds.

Does Plutio track contract versions?

Every edit records with who changed what and when. Previous versions are accessible from the contract record without searching email threads. The current version is always clear, eliminating the "contract_v2_final_FINAL.docx" naming problem that Word workflows rely on.

What happens after a contract is signed in Plutio?

When a client signs, Plutio creates the project with tasks, milestones, and deadlines pulled from the scope of work. The contract stays linked to the project record, the client portal activates with branded access, and payment milestones from the contract terms can trigger invoices at the right stages. The signed contract remains accessible to both parties through the portal.

How much does Plutio cost compared to Word plus DocuSign?

Microsoft 365 costs $6.99-$12.99/month, and DocuSign plans start at $10-25/month for e-signatures. Plutio starts at $19/month and includes contracts, e-signatures, proposals, projects, invoicing, time tracking, and client portals. Running Word plus DocuSign plus a project tool ($11-27/month) plus an invoicing tool ($15-30/month) costs $43-95/month for a workflow that Plutio handles from one platform.

Does Plutio have contract templates?

Plutio includes templates for service agreements, project-based contracts, retainer arrangements, NDAs, and subcontractor agreements. Templates include clause libraries, dynamic fields that auto-fill client details, and scope of work sections that convert to project tasks on signing. Every template customizes with brand colors, logos, and formatting.

Can I track contract renewal dates in Plutio?

Key dates including renewal deadlines, milestone triggers, and obligation due dates are visible in the project timeline and client record. The contract stays linked to the project, so upcoming obligations surface during project work rather than requiring a separate calendar or tracking spreadsheet.

Can I attach contracts to proposals in Plutio?

Contracts link to proposals so the agreed scope and the legal terms stay connected. When a client signs the proposal, the contract can activate simultaneously. The client sees both documents in their portal, and the project that creates from the signed proposal references the contract terms.

Does Plutio offer a free trial?

Plutio offers a 14-day free trial with full access to every feature. Contracts, e-signatures, proposals, projects, invoicing, time tracking, and client portals all work from day one. No credit card required, no feature gates, no locked tiers.

Is Word or Plutio better for freelancers managing contracts?

Word handles document creation and formatting for any type of written content. For business contracts that need e-signatures, version tracking, project creation, and connection to invoicing and client portals, Plutio covers the full lifecycle. Most freelancers use Word for general documents and Plutio for contracts that need to get signed and turned into active projects.

Still emailing Word documents for signatures?

Contracts that get signed, tracked, and turn into projects

Plutio handles contracts with built-in e-signatures, version tracking, automatic project creation, and client portal access. Free for 14 days, no credit card required.

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