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How To Create Automated Contracts

Chyna Kiehn
Chyna Kiehn
August 3, 2023
people reviewing a contract

In today's fast-paced business world, efficiency is paramount. Efficient contract management can significantly impact your operations. Enter automated contracts, revolutionizing how businesses handle agreements. In this guide, we'll uncover the secrets to effortless contract automation. Whether you're a small business simplifying operations or a large corporation aiming to scale efficiently, automated contracts are a must-have tool. Keep reading to unlock the full potential of automation and elevate your business operations.

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How To Create Automated Contracts: Streamlining Your Business Operations

To remain competitive in the fast-paced business world of today, efficiency is essential. Contract management is one area where efficiency may have a big influence on your business. Imagine a world in which contract creation is not only faster but also more precise, freeing you up to concentrate on the things that really count, like expanding your company and fostering client connections. Introducing automated contracts, a disruptive technology that is changing the way companies manage their contracts. We'll reveal the techniques for writing automated contracts in this article, so you can easily optimize your contract administration procedures.

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Understanding Contract Automation

What is contract automation?

Through the use of software, internal teams in companies and organizations can standardize the steps and responsibilities involved in the contract lifecycle, promoting consistency and dependability in the contracting process. This is known as contract automation. Automation of your contracts is a great way to reduce risk in this way. Contracts can be self-served by your legal department and other contract lifecycle teams, giving greater autonomy, independence, and productivity while guaranteeing risk management and contract correctness and compliance.

Contract Automation to Maximize Contract Lifecycle Management

Will my firm benefit from contract automation? Obviously, the response is in the affirmative. Your contract lifecycle management approach can benefit from a little bit more reliability and risk reduction from contract automation, especially if your business manages a high volume of really complex contracts. Using contract automation software could be a wise move if your expanding contract portfolio is making it tough for you to maintain the quality of your contracting processes. Your departments and teams that contribute their knowledge at different phases of the contract lifecycle will benefit from automating your contracts. Teams like legal, HR, finance, procurement, and sales, to mention a few, can all benefit from automation.

Manual vs. Automated Contract Management

The inherent risk associated with manual contract administration stems from the absence of cloud security and complete standardization. An employee finds a contract template (probably on a shared drive, which is dangerous in and of itself), fills in the data entry fields, and emails the completed template to their legal department for review before sharing the document with the counterparty. This is how a manual contract procedure typically plays out.

After downloading the document, the counterparty will open it in Microsoft Word to make edits and comments. They email the document back after making any necessary changes to it. The back-and-forth contact via email only serves to raise the danger of misunderstandings, security lapses, and inaccurate tracking and monitoring of your contract negotiations. And in the end, what does this mean? decreased transparency of the contract for all parties concerned.

The Disadvantages of Manual Contract Management

employees working in an office

Manual contract management has several drawbacks that hinder efficiency. It often leads to poor contract quality due to the lack of standardization, resulting in inconsistencies and inaccuracies. Additionally, the manual process can unintentionally duplicate work, making it less efficient and prone to errors.

Moreover, manual contract management increases the risk of delays and missed opportunities. It lacks the ability to provide a seamless experience for counterparties, potentially affecting business relationships. Manual processes sometimes result in sluggish contract execution, which can cause missed opportunities and longer contract lifecycles, which in turn leads to fewer closed deals and unfulfilled business possibilities. Many companies are using contract automation to boost overall productivity and streamline their contract management procedures in order to overcome these obstacles.

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Getting Started with Contract Automation

Contract automation offers a streamlined approach for organizations to manage their contract processes efficiently. The first step involves creating standardized contract templates, which is crucial for maintaining legal accuracy and compliance. The legal department typically oversees this to ensure the contracts meet all necessary legal requirements. However, it's also essential to collaborate with the communications department to guarantee that these templates align with the company's branding and communication standards. This collaborative effort ensures that the contracts not only adhere to legal standards but also reflect the organization's identity and values.

The process then moves to leveraging self-serving contracts and establishing efficient approval workflows. Departments directly involved in contract lifecycle management are empowered to build and send contracts, tailoring them to specific needs. This collaborative effort across departments ensures each contract is detailed and precise. The use of contract approval workflows further streamlines the process by reducing the dependence on the legal department for every approval, thereby expediting the contract lifecycle management. In certain situations, higher-level attention from senior management or legal may be necessary, but generally, stakeholders are equipped to approve their own contracts. Additionally, in fast-paced and growing organizations, electronic signature workflows are increasingly common, allowing for quick and secure signing of contracts, especially by senior management or department heads. This approach not only accelerates the process but also supports the dynamic needs of expanding businesses.

Benefits of Contract Automation

For companies trying to optimize their processes, contract automation has a lot of benefits. First of all, it drastically reduces contract lifecycles, making it possible to create and execute contracts more quickly. This speeds up the deal-closing process. Secondly, automation ensures increased consistency and organization by enforcing standardized workflows, minimizing errors, and reducing inconsistencies. Additionally, automated notifications and reminders enhance task management, ensuring that crucial contract-related tasks and deadlines are met punctually.

Additionally, automation maximizes contract transparency and visibility by making it simple for stakeholders to follow the status and development of the contract, which promotes improved communication and decision-making. By guaranteeing adherence to legal and regulatory standards and lowering the possibility of non-compliance problems, contract automation also plays a critical role in decreasing contract-related risks. Additionally, it frees up legal teams to concentrate on strategic projects by reducing the workload on legal departments using self-service contracts. In conclusion, contract automation brings about major reductions in contract delays and bottlenecks, fostering efficient contract progression, enhancing the quality of business relationships, and boosting client satisfaction.

Key Features of Contract Automation Software

Here are some key features to look for when adopting a contract management solution inclusive of contract automation capabilities:

A dynamic editing tool: A dynamic text editor can help you include tables, images, and other content to enhance your contracts.

Electronic signature integrations: Integration with electronic signature platforms allows for rapid and secure contract signing.

Collaborative digital portals: Streamline editing and negotiations with portals that allow you to easily redline and amend files.

Smartfields: Maintain contract metadata for simple and accessible searching and tracking.

Visual contract dashboards: Proactive contract dashboards provide visual timelines and information regarding the location of contracts within their life cycles.

Want to say goodbye to manual contract hassles? Connect with us now to discover how our automation expertise can simplify contract creation and boost your efficiency.

Creating Automated Contracts

people reviewing a contract

By adopting contract automation, businesses can achieve multiple potential advantages. They can save time, minimize risks, and enhance the overall quality of their contracts, all while strengthening relationships with clients and partners. The path to implementing automated contracts begins with recognizing the advantages and learning how to effectively integrate this technology into their processes. This journey ultimately leads to a more efficient and successful future for the business. So, take the first step and explore the world of contract automation to transform your contract management processes.

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