Automated contract creation and management - know what to expect

Automating contract creation and management can be a daunting task, but it does not have to be. In this blog post, we will explore the automated contract creation process, how to prepare for it, what to expect when using automated contract makers, and ways to get the most out of using contract automation tools.

The process of creating contracts

Crafting an effective contract is a complex process. It requires understanding the needs of both parties, researching legal documents and researching existing contracts to ensure that all necessary clauses are included and only relevant information is included.

Using automated contract makers simplifies this process dramatically, as it allows users to create tailored contracts quickly and accurately with little manual labor involved. Contract management software can be used to generate contracts from templates, edit existing contracts, review them for accuracy and make necessary changes.

The contract management process

Managing contracts typically involves keeping them up to date, tracking their status and ensuring that all terms and conditions are met. It is also worthwhile to track various metrics in order to improve performance over time.

Automated contract management tools can make this process much more efficient. They allow users to track the progress of contracts from creation to signature, as well as store and manage existing contracts. They also provide tools to help users easily search, edit and review contracts, as well as automate the process of sending notifications when changes are made or deadlines are approaching.

The cost of inefficient contract creation and management

Inefficient contract creation and management can result in legal disputes, missed deadlines and inaccurate contracts. It lengthens negotiations and versioning, impacts sales, and causes delays. As a result, multiple inefficiently managed contracts can be very costly for a business.

There is a clear need to deploy automatic contract management technology. Leading companies that optimize contract management see margin improvements of up to 2.5%.

Automating contract management

Contract lifecycle management automation allows users to store, track and manage all their contracts in one place. This makes it easier to access current contracts, compare similar documents side-by-side or even automate contract renewal processes. Such software can also be used to track key dates, deadlines, and compliance requirements.

Contract automation also includes the ability to automatically generate contracts using templates and stored data. This greatly speeds up the process of creating contracts and eliminates manual errors.

By automating contract creation and management processes, businesses can save time and money while ensuring that all contracts are accurate and up-to-date. Automated tools are also more secure than manual methods as they are less prone to human error.

Benefits of contract lifecycle management automation

Using automated contract makers and contract management tools can offer numerous benefits, including:

Increased accuracy in document creation and review

Human error is minimized when a contract template is automatically filled with data from a CRM system. Additionally, automated contract management tools can help ensure that all contracts are complete and accurate by automatically checking for errors before a new document is signed.

Reduced time spent on managing contracts

Automated contract makers reduce the amount of manual labor needed to create and manage contracts. It also eliminates the need to manually review each document for accuracy and completeness, saving valuable time.

Streamlined document tracking and management

Automated contract tools enable users to track the progress of their contracts from creation to signature, as well as store and manage existing contracts. This helps ensure that all contracts are up-to-date, accurate, and compliant with legal requirements.

Automated notifications for changes or deadlines

Contract automation software can send notifications when changes are made to contracts or deadlines are approaching, helping users stay informed and ensure that all relevant parties are kept up-to-date.

Improved data security

Contract automation tools help reduce the risk of data theft and other security threats, as they are less prone to human error than manual processes.

Easy access to current contracts

Contract automation tools allow users to quickly access current contracts, compare similar documents side-by-side, and even automate contract renewal processes. This makes it easier to track contracts and stay up-to-date.

Improved collaboration between teams and stakeholders

Sharing documents and data is simplified when using automated contract tools, as multiple people can access the same document at any time. This encourages collaboration between teams and stakeholders, leading to better decisions being made faster. Thanks to version history, it is easy to go back and review changes made during the contract creation process.

Greater efficiency in contract negotiations

By automating the process of creating and managing contracts, businesses can save time and money while ensuring that all documents are accurate and up-to-date. This leads to more efficient contract negotiations, allowing stakeholders to focus on making sure that both parties agree with the terms rather than spending hours reworking documents.

Reduced overhead costs of manual processes

Automating contract creation and management processes eliminates the need for manual labor, reducing overhead costs.

Increased security through automated document retention policies

Automated document retention policies help businesses stay compliant with data protection laws and protect their confidential information. Contract automation software can be used to automate these processes, ensuring that all documents are securely stored and destroyed when no longer needed.

Improved visibility into contract status and performance metrics

Contract automation tools provide visibility into the status of contracts, as well as performance metrics such as cost savings, time savings and negotiation success rate. This allows businesses to track their progress over time and make improvements where necessary.

Streamlined processes for contract termination and renewal

Contract automation tools allow users to quickly access all relevant contracts, compare similar documents side-by-side, and automate contract renewal processes. This helps ensure that all contracts are up-to-date, accurate, and compliant with legal requirements.

Better analytics and insights

Contract automation software can be used to track and analyze contract performance data such as cost savings, time savings, and negotiation success rate. This allows businesses to gain valuable insights into their contracts and make informed decisions about future contracts.

With the right tools and preparation, businesses can realize these benefits quickly and easily. Taking advantage of automated contract makers is a great way to increase efficiency, save time and money, and ensure that all contracts are compliant with local laws.

Ways to digitize and automate contract management

Smart templates, document analysis and automatic data capture are just some of the ways businesses can digitize and automate contract management. With customized templates and intuitive document editing tools, users can quickly create and edit documents. Natural language processing (NLP) technology can be used to analyze large contracts for accuracy while automated data capture is used to extract relevant information from a document.

1. A central database of contacts

A centralized database of contracts is a great way to keep track of all documents, ensure that they are up-to-date and compliant with local laws. It also helps to standardize the document review process, reduce manual entry errors, streamline contract creation and provide easy access to current contracts.

2. Automated notifications and alerts

Automated notifications and alerts can help ensure that all deadlines are met and any changes to contracts are tracked. This allows businesses to remain on top of compliance requirements, reduce time wasted on manual tracking and improve the accuracy of contract management.

3. Smart analytics tools

Smart analytics tools can be used to gain valuable insights into the performance of contracts at a glance. They can provide data visualizations on contract performance over time, track changes and analyze trends.

4. Document sharing tools

Document sharing tools allow users to securely share documents with each other. They also provide an audit trail so that everyone in the organization can easily keep track of who has access to a document and when it was accessed.

5. Self-serve contracts

Self-serve contracts are a great way to reduce the time and effort required for negotiating new contracts. By providing customers with an automated contract maker, businesses can quickly create tailored contracts that meet their needs without the need for manual entry or review.

6. Automated templates

Automated templates simplify the process of creating contracts. With customised templates, users can quickly generate documents and ensure that all necessary information is included.

7. Approval workflows

Approval workflows help to ensure that all contracts are reviewed and approved in a timely manner. They also streamline the contract creation process, reduce the risk of errors and provide visibility into the document approval process.

8. Automated signing process

Automated signing processes help to streamline the document signing process. By automating this step, users can ensure that all documents are signed quickly and accurately with reduced risk of errors.

9. Auto-fill party information

Auto-fill features make it easy to quickly populate documents with the relevant party information. This can reduce manual entry errors and speed up the document creation process.

10. Version history and change detection

Version history and change detection features help to track any changes to a document. They provide an audit trail of all changes made, which can be used to verify accuracy and ensure that contracts are compliant with local laws. They can also be helpful during negotiations and revisions.

Tips for successful contract automation

Successfully using automated contract management tools requires preparation. Here are some tips for getting the most out of your contract automation software:

• Ensure that the right people have access to existing contracts or templates
• Research and understand the needs of both parties
• Create a checklist of standard clauses to be included in contracts
• Set up automated notifications for key dates or changes
• Use data security measures, such as encryption and secure access levels.

With these tips in mind, businesses can ensure that their contract automation process is successful and that their contracts are accurate, up-to-date and compliant with all legal requirements.

How to prepare for automating the contract management process

Before automating the contract management process, it is important to be prepared. Here are some steps that businesses can take to ensure they get the most out of their automated contract management systems.

Analyze existing contracts and identify areas for improvement

Taking a close look at areas such as renewal rates, contractual fees, or unmet deadlines can be a great way to gather insight on where contract management optimization is most needed. This will help ensure that all contracts are up-to-date and compliant with local laws.

Create contract templates

Templates are a great way to streamline the contract creation process. By creating customized templates, users can quickly generate documents that meet their needs.

Gather customer data

Gathering customer data is essential for preparing automated contracts. This data can be used to quickly populate documents with the relevant information and ensure accuracy.

Train staff on using the software

Training staff on how to use automated the chosen contract management solution is essential for successful implementation. It will help ensure that all users understand how the system works and are able to use it effectively.

Set up a checklist for the contract creation process

Creating a checklist for the contract creation process can help ensure that all documents are reviewed and approved in a timely manner. This will also provide visibility into the document approval process and reduce time wasted on manual tracking.

Create a timeline for automating the process.

Creating a timeline for automating the contract management process is key to ensuring that all deadlines are met and any changes to contracts are tracked. This will allow businesses to remain on top of compliance requirements and ensure accuracy.

Assign contract management responsibilities

Assigning contract management responsibilities will help ensure that all tasks are completed on time and in the correct manner. This will help streamline the process and reduce errors.

Determine what kind of reporting is necessary

It is all too easy to track absolutely everything that can be tracked in the entire contract lifecycle, then create completely incomprehensible reports. To determine what kind of reporting is necessary and how to best track it, consider the key performance indicators that are important to the specific organization.

By taking these steps, businesses can ensure that their automated contract management process is effective and efficient. Automating document creation and management processes can save time, money and effort while ensuring accuracy and compliance.

Best automated contract management software

There are many contract management software options available, so it is important to do thorough research and choose the right one.

DocuSign

DocuSign is one of the most popular contract management software options. It offers document storage, version tracking, secure document sharing and automated signature verifications. Thanks to integrations with tools like Salesforce, SAP, Slack, and Zoom, it fits easily into almost any workflow.

Juro

Juro is a contract automation and management platform that simplifies the document review process. It allows users to quickly create, store and manage documents in one place. Its visual editor helps users easily add clauses, annotate documents, leave feedback and approve contracts.

ContractSafe

ContractSafe offers automated document tracking with full-text search capabilities. Users can automatically capture important data points and easily search for specific documents. The software also offers automated document routing, version history tracking and secure document sharing.

Avokaado

Avokaado is an automated contract management platform that simplifies the negotiation process. It offers document storage, version control and automated notifications for key dates. Its AI-powered clause library also allows users to quickly generate contracts tailored to their needs.

ContractWorks

ContractWorks is an automated contract management tool with features like document storage, search capabilities and version tracking. It also offers customized workflows for streamlining the process of creating, negotiating and signing contracts.

PandaDoc

PandaDoc is an automated document management platform that is not tailored specifically for contract management, but still offers useful features, such as document storage and sharing, version history tracking, custom workflows with CRM integrations, and e-signatures.

Automated contract lifecycle management FAQ

Q: What is a contract lifecycle?

A: A contract lifecycle is the process of creating, negotiating, signing and managing contracts. It includes all activities related to creating contracts, sharing them with other parties, tracking changes, signatures and renewals.

Q: What is the best contract management software?

A: The best contract management software depends on the specific requirements of a business. Popular tools include DocuSign, Juro, ContractSafe, Avokaado and ContractWorks.

Q: How much does contract management software cost?

A: Price varies depending on the features and number of users. Most solutions offer tiered pricing with basic, professional and enterprise plans, so businesses can choose the package that best fits their needs.

Q: How do contract management systems replace manual data entry?

A: Contract management systems reduce manual data entry by automatically capturing key data points, such as customer information and document versions. This makes it much easier to track changes and ensure accuracy.

Q: How do contract management solutions help the sales team?

A: Contract management solutions can help the sales team save time and effort by automating the entire process of creating, negotiating and signing contracts. This streamlines their workflow and helps them close deals faster.

Q: How do contract lifecycle management tools protect contract data?

A: Contract lifecycle management tools protect contract data by storing documents in a secure, centralized repository. They also offer automated version control and auditing capabilities to ensure that only the most up-to-date documents are used.

Q: Are in house legal teams or legal departments necessary for contract lifecycle management?

A: In-house legal teams are not always necessary for contract lifecycle management, but they can be very helpful in ensuring that contracts meet all legal requirements. They can also help streamline the process and ensure accuracy.

Q: How do I set up automated contract management?

A: Automated contract management can be a complex process, so it is important to take the time to plan ahead. Start by analyzing existing contracts and identifying areas for improvement, creating templates, gathering customer data, training staff on using the software, setting up a checklist for the contracting process and creating a timeline for automating the process.

Q: What should I look for when selecting an automated contract management system?

A: When selecting an automated contract management system, consider features such as document storage and tracking, customized workflows, integrations with existing systems and secure document sharing. It is also important to make sure that the software meets all of the company's compliance requirements and fits within the budget.

Q: Are there any best practices for using automated contract management?

A: When using an automated contract management system, it is important to assign roles and responsibilities, determine what kind of reporting is necessary, and that the right people have access to relevant systems and data.

Q: Can contract management software work regardless of contract language?

A: Yes, most contract management software solutions support multiple languages and can handle contracts written in different languages. This makes it easier for businesses to collaborate with partners around the world.

Automating ongoing management of contracts

Automating contract creation and management is a great way to reduce manual labor while ensuring accuracy and speed in the process. Automated contract makers can handle complex tasks such as document drafting, editing, and review in an efficient manner. Automated contract management tools can streamline the process of tracking and managing contracts, as well as automate notifications for key dates or changes.

By leveraging automation, businesses are able to create better-quality contracts, reduce manual labor costs, and free up valuable time for more strategic tasks. With the right tools in place, businesses can ensure that all their contracts are accurate and compliant while also saving time and money.