Contract automation uses technology to streamline contract creation, approval, execution, and monitoring.
For example, businesses can automatically generate contracts from templates and route them through predefined approval workflows, significantly reducing the time and effort required in traditional contract management.
In this blog, we’ll explain what contract automation is, how it can benefit your business, and how to automate contract management. We’ll also look at best tools and real-world examples to show its impact.
What is contract automation? Contract automation is the use of technology to create, approve, and manage contracts without manual effort. Instead of handling contracts by hand, contract automation uses software to streamline the entire process. This makes it faster, more accurate, and easier to manage.
Here are some of the areas of the contract process you can automate:
Contract creation: Automatically generate contracts with pre-filled templates based on client data.Contract approvals: Set up workflows that sequentially route contracts to stakeholders for instant approvals.Contract renewal/expiration reminders: Automate notifications for upcoming renewals or expirations.Contract storage: Automatically store and organize contracts in a secure, centralized repository.Contract reporting and analytics: Generate real-time reports and analytics on contract performance.Traditional contract management vs. automated contract management Traditional contract management involves a lot of manual steps. You have to draft the contract, send it for approval, make changes, and keep track of all versions. This can be slow and prone to errors.
Automated contract management , on the other hand, simplifies these steps. The software helps create contracts using templates, routes them for approval automatically, and keeps track of everything in one place. This reduces the time it takes to manage contracts and minimizes mistakes.
Below is a detailed comparison
Why is contract automation useful? Believe it or not, poor contract management can cost you 9% of your annual business revenue. This loss often comes from inefficient processes, errors, and missed opportunities that could have been avoided with better contract management.
Automating repetitive tasks allows you to focus on more strategic activities that contribute to business growth. This not only increases productivity but also speeds up the contract cycle, so you can close deals faster.
With reusable templates, you can streamline the document creation process by using pre-designed formats that are easily customizable. This not only saves time but also ensures consistency across all your contracts, maintaining a professional standard.
Keeping track of the latest version of a contract can be a headache, especially when multiple stakeholders are involved. Automation ensures everyone always has access to the most up-to-date version, eliminating confusion and ensuring that all changes are tracked and recorded properly.
With contract automation, you can ensure that all your agreements are consistent, secure, and compliant with company standards. Using pre-approved templates and standardized clauses, you can quickly create customized NDAs, service agreements, and other contracts.
Still not convinced about how contract automation can truly help your business? See how SoharPort and Freezone achieved a 60% increase in efficiency in their admin processes by automating contract management.
What problems does contract automation solve? A 2021 survey of legal executives revealed that most see substantial opportunities for automation in legal operations. Around 72 percent of respondents felt that automation could be effectively adopted for contract lifecycle management.
Source Contract automation addresses many challenges that businesses face with traditional contract management. Here are some key problems it solves:
1. Manual errors Manual contract creation and management often lead to errors. These include typographical mistakes, incorrect data entry, omission of key clauses, and inconsistent use of terms. Such errors can result in misunderstandings, legal issues, and financial losses.
Calastone , the world’s largest global funds network, faced this challenge in its contract management.
With contracts running up to 20 pages, any minor issue, such as a typing error, would require repeating the entire process. This took up a lot of time and manual effort and contradicted Calastone’s mission to automate the funds industry. Says Ourania Gketi, Office Manager at Calastone Contract automation significantly reduces these risks using standardized templates and automated data entry, ensuring that all contracts are accurate and consistent.
Automated systems also provide checks and validations to catch errors before they become problematic, leading to more reliable and professional contracts.
Learn how Calastone automates contract workflows with Signeasy
2. Time-consuming processes Drafting, reviewing, and approving contracts can be extremely time-consuming, often requiring multiple iterations and back-and-forth communications. This manual process slows down business operations and leads to significant delays.
Nigel Ridderstaat, Aruba Bank 's IT manager, says processing paperwork took too long, causing delays in performing essential tasks such as opening a new account or releasing a loan.
With contract automation, these processes are expedited. Automated drafting uses pre-approved templates, while workflows swiftly route contracts to appropriate parties for review, approval, and signatures.
Automation saves valuable time and speeds up the overall contract lifecycle, enabling businesses to operate more efficiently.
Signeasy has helped us successfully reduce our paperwork by up to 60 percent. For the customer, it has cut down their waiting time, making our processes 2x faster as we now email the final signed paperwork directly. Read how Aruba Bank automates contract workflows.
3. Inconsistent contract templates Using different templates for similar contracts leads to inconsistent terms and conditions, creating confusion and potential legal vulnerabilities.
Contract automation standardizes templates and clauses, ensuring uniformity across all contracts. This consistency enhances the professional appearance of documents and reduces the risk of discrepancies that could lead to disputes or misunderstandings.
Before (contract automation tools like) Signeasy, the absence of standardized templates meant documents could deviate from established guidelines, risking discrepancies and non-compliance. With this feature, the admin sets up templates conforming to company policies and shares them with the team. The team selects the appropriate template, inputs new information, and sends it out for signatures. Read how Mercure Hotel automates contract workflows to streamline contract management
4. Difficulty in tracking and monitoring Manually tracking the status and milestones of contracts is challenging and prone to oversight. Important deadlines may be missed, and the lack of real-time updates can hinder effective management.
When Cleartrip , a global online travel agency, faced challenges in improving their hotel partner onboarding processes, they realized that manually tracking the progress of partner contracts was consuming a lot of valuable time.
Contract automation provides real-time tracking capabilities, allowing you to monitor the status of each contract from creation to execution.
Automated alerts and notifications ensure that all stakeholders are aware of critical milestones, helping to maintain timely progress and adherence to deadlines.
Signeasy’s contract automation platform allows our partner relations team to easily track each contract’s status in real-time and send reminders to hotel partners to hasten the process. 5. Lack of visibility and storage Having a clear, comprehensive view of all contracts and their status is essential for effective management but can be difficult to achieve with manual systems. Information may be scattered across various platforms or physical locations, making it hard to track and control.
Contract automation centralizes all contracts in a secure, easily accessible repository. This centralization provides enhanced visibility and control, allowing managers to quickly retrieve and review contracts, monitor their status, and make informed decisions based on real-time data.
6. Delayed approvals Waiting for contract approvals can be a significant bottleneck in business operations. Manual approval processes are often slow and inefficient, causing delays that can impact project timelines and business relationships.
Managing the finances at De’Longhi , which boasts annual revenues of over 380 million euros, Duncan Nicholls handles many responsibilities. The traditional approval process was particularly slow, necessitating the presence of all signers in the office. Invoice approvals could range from a single day to up to two weeks, depending on the invoice's complexity.
Contract automation streamlines the approval process by using predefined workflows that automatically route contracts to the necessary approvers. This reduces delays and ensures that contracts are approved on time. It keeps business operations on track and maintains positive relationships with clients and partners.
“We found that Signeasy could be easily integrated with other Google apps to automate approved invoice storage locally,” said Duncan. “This was key in helping us create a local digitally approved invoice database with very little administrative effort or infrastructure changes.” Learn how De'Longhi fast-tracks internal approvals
7. Scalability challenges Managing an increasing volume of contracts as a business grows can be overwhelming with traditional methods. Manual processes struggle to keep up with the demand, leading to inefficiencies and potential errors.
With more than 30 years in the business, La Cabana is well-versed in organizational expertise, managing 250 full-time employees and up to 100 contractors. However, the resort faced scalability challenges in handling the sheer volume of diverse paperwork, spanning internal, external, interdepartmental, and localized documents. Contract automation is designed to scale effortlessly with your business needs. It can handle a growing number of contracts without compromising on speed or accuracy, ensuring that your contract management processes remain efficient and effective as your organization expands.
La Cabana seamlessly transitioned from analog to digital, cutting out the middlemen (read: printers and scanners) to create their best-ever automated contract workflow. Get the details on how La Cabana automated their contract workflows to achieve efficiency .
Benefits of contract automation Contract automation streamlines day-to-day operations and provides strategic advantages that can drive business growth and success. Here’s a detailed look at the key benefits of implementing contract automation:
1. Increased efficiency and speed By automating contract management, businesses can achieve faster and more streamlined operations.
Faster contract creation : Contract automation software allows the creation of pre-built templates that can be customized to suit specific needs. This eliminates the time-consuming task of drafting contracts from scratch.Streamlined approval processes : Automated workflows route contracts through the appropriate channels for review and approval, reducing delays and ensuring contracts are processed quickly.Reduced turnaround time : With automated alerts and notifications, stakeholders are promptly informed of required actions, leading to quicker contract finalizations and fewer bottlenecks.2. Improved accuracy and compliance Accuracy and compliance are crucial for effective contract management, and automation significantly enhances both.
Minimized human errors : Automation reduces the risk of manual errors in drafting, reviewing, and managing contracts. This ensures that contracts are accurate and free from common mistakes.Consistent use of template s: Standardized templates ensure consistency in contract language and clauses, reducing the risk of non-compliance and legal issues.Enhanced compliance : Automated compliance checks ensure contracts adhere to relevant laws and regulations. This is particularly important in industries with strict compliance requirements, such as healthcare and finance.3. Cost savings Implementing contract automation can lead to substantial cost savings for your organization.
Reduced administrative costs : Automation eliminates many manual tasks associated with contract management, reducing the need for extensive administrative support.Lower operational costs : Faster processing and fewer errors translate to lower operational costs. This can result in significant savings, especially for organizations that handle a large volume of contracts.Avoidance of penalties : Ensuring compliance and timely renewals through automation helps avoid costly penalties and fines associated with non-compliance or missed deadlines.4. Enhanced tracking and management Effective tracking and management are essential for keeping contracts organized and accessible.
Real-time monitoring : Contract automation software tracks contract status, from creation to approval and execution. This visibility helps managers stay informed and take timely action.Centralized repository : All contracts are stored in a single, secure location, making them easy to search, access, and manage. This centralization enhances organization and control.Detailed audit trails : Automated systems maintain detailed logs of all actions taken on a contract, including edits, approvals, and signatures. This transparency is crucial for audits and compliance.5. Better visibility and control Having clear visibility and control over contracts is crucial for effective management.
Improved oversight : Managers have better visibility into the contract lifecycle, enabling them to monitor progress, identify bottlenecks, and make informed decisions.Role-Based Access Contro l: Contract access can be restricted based on user roles, ensuring only authorized personnel can view or edit sensitive information. This enhances security and control over contract management.6. Reduced risk Reducing risk is a key benefit of contract automation, helping to safeguard your business.
Mitigated compliance risks : Automated compliance checks and standardized templates ensure that contracts meet legal and regulatory requirements, reducing non-compliance risk.Minimized financial risks : Automated alerts and reminders prevent missed deadlines and renewals, reducing the risk of financial losses due to overlooked contract obligations.Enhanced risk assessment : AI-powered tools can analyze contracts for potential risks, flagging problematic clauses and suggesting improvements to mitigate risks.7. Improved collaboration Collaboration is essential for contract management, and automation enhances it significantly.
Seamless collaboration : Contract automation software often includes collaboration features that allow multiple stakeholders to review and edit contracts simultaneously. This streamlines the review process and enhances teamwork.Automated notifications : Stakeholders receive automated notifications for required actions, keeping everyone informed and aligned throughout the contract lifecycle.8. Scalability As your business grows, contract automation can scale to meet increasing demands.
Adaptable to business growth : Contract automation software is scalable, meaning it can handle increasing contracts as your business grows. This ensures that your contract management processes remain efficient and effective.Support for various contract types : Whether dealing with sales agreements, NDAs, employment contracts, or vendor contracts, automation software can handle various contracts, making it a versatile solution.9. Enhanced customer and vendor relationships Strong relationships with customers and vendors are crucial for business success.
Faster response times : Quicker contract processing times improve customer and vendor satisfaction, as they experience faster service and fewer delays.Professionalism and consistency : Using standardized templates and ensuring timely actions reflect professionalism and reliability, strengthening relationships with clients and partners.10. Data-driven insights Leveraging data can significantly enhance contract management decisions.
Analytics and reporting : Contract automation software provides analytics and reporting features that offer insights into contract performance and compliance. These insights can inform strategic decisions and continuous improvement efforts.Predictive analytic s: Some advanced systems use AI to predict outcomes based on historical data, helping organizations anticipate issues and optimize contract terms.How to automate contracts Automating contracts makes the process faster, more accurate, and easier for everyone involved. If you've ever been frustrated by long email chains or lost track of a contract's progress, you know how helpful automation can be. Using the right tools and a strategic plan is key to successful automation.
Start by choosing a Contract Lifecycle Management (CLM) software that fits your needs. Look for one that offers customizable features works well with your current systems, and provides detailed reporting. This sets the stage for an efficient contract automation process.
Next, electronic signatures allow contracts to be signed from anywhere, at any time, making the process faster and more convenient for all parties involved.
Setting up automated reminders for contract milestones and expirations is also crucial. These reminders can help prevent missed opportunities and ensure timely renewals, keeping everything running smoothly without constant checking.
A contract automation tool like Signeasy can also automate admin tasks throughout the entire contract lifecycle. For example, you can automate the drafting process by setting up a workflow where contract data is automatically pulled into a template. This can be done by integrating the tool with your existing CRM, ERP, or cloud storage. The goal is to reduce the manual work involved in creating and managing contracts, giving you more time to focus on what really matters.
To help you get started, we’ve outlined a step-by-step process on how to automate your contract workflow below. This guide will walk you through each stage, ensuring you can implement these strategies effectively and maximize the benefits of contract automation.
How to automate contract management workflows Automating contract management can save time, reduce errors, and improve efficiency. This section provides actionable insights and practical steps to get you started.
1. Assess your current contract management process Before diving into automation, it’s essential to assess your current contract management process thoroughly. This will help you identify pain points and areas for improvement, ensuring that you choose the right solutions for your specific needs.
A. Map out your current workflow Begin by mapping out your current contract management workflow from start to finish. Document every step in creating, reviewing, approving, and storing contracts. This will give you a clear picture of the entire process and highlight areas that may need improvement.
Example:
Contract creation : Identify who is responsible for drafting contracts and what tools they use. Are templates available, or is each contract created from scratch?Review process : Determine how contracts are reviewed and by whom. Is there a standardized review process, or does it vary by contract type?Approval workflow : Look at how contracts are approved and signed. Is there a clear approval hierarchy, or are approvals ad hoc?Storage and retrieval : Assess how contracts are stored and accessed. Are they kept in a centralized digital repository or scattered across different systems or physical locations?B. Identify pain points Next, identify the pain points in your current workflow. These are the areas where delays, errors, or inefficiencies occur most frequently. Common pain points might include:
Manual data entry: Repetitive manual data entry that leads to errors and consumes time. Inefficient approval processes: Bottlenecks in the approval process due to lack of clarity or slow response times.Lack of standardization : Inconsistent use of templates and clauses, resulting in varying contract quality.Poor tracking and monitoring : Difficulty in tracking contract status and milestones, leading to missed deadlines.Compliance issues : Challenges in ensuring that all contracts meet legal and regulatory requirements.Gather feedback from team members involved in the contract management process. Ask them about their challenges and suggestions for improvement.
What are the most time-consuming tasks in your contract management process? Where do you frequently encounter errors or delays? How do you currently track contract status and milestones? What tools or methods do you use for contract approvals and storage? 2. Digitize existing contracts Convert your existing paper contracts into digital format. Scan and upload all contracts into the new system. This creates a centralized, searchable repository for easy access.
3. Create standardized templates Developing standardized templates for contracts ensures consistency and reduces the time needed to draft new contracts. Here’s how to go about it.
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A. Identify common contract types Determine the types of contracts your organization frequently uses, such as insurance claims forms, patient consent forms, NDAs, sales agreements, and employment contracts.
Create a list of the most frequently used contracts and prioritize them for template creation. For a tech company, common contracts might include software licensing agreements, vendor contracts, and service level agreements (SLAs).
B. Develop standardized templates Create templates for each type of contract, ensuring they include all necessary clauses and terms. Collaborate with legal experts to ensure that the templates comply with legal standards and best practices.
C. Implement consistency checks Regularly review and update templates to maintain consistency and relevance. Schedule periodic reviews of all templates to ensure they remain current and comprehensive.
4. Define approval workflows Setting up automated workflows for contract approvals ensures that contracts move smoothly through the process without unnecessary delays. Here’s how to go about this.
A. Map out hierarchies Identify the approval hierarchies for different types of contracts. Determine who needs to approve each type of contract and in what order.
B. Set up automated workflows Use your contract automation software to set up automated workflows based on the approval hierarchies.
For example, configure the system to automatically route a sales agreement to the sales manager, legal team, and then the CFO for final approval.
C. Implement notifications and reminders Set up automated notifications and reminders to ensure that approvers are promptly informed of pending tasks.
Email or in-app notifications alert approvers of pending tasks and approaching deadlines.
5. Integrate with other systems Ensuring that your contract automation software integrates seamlessly with other business systems is crucial for efficient data synchronization and accessibility.
A. Identify key systems for integration Determine which systems your contract management software needs to integrate with, such as CRM, ERP, and email platforms.
Create a list of all systems requiring integration and their specific requirements.
B. Implement seamless integration Work with your IT team or software vendor to implement seamless integration between your contract automation software and other systems.
Use APIs to facilitate smooth data exchange between systems. For example, integrate your contract management software with HubSpot to automatically update contract statuses and client information.
6. Use eSignature Electronic signatures can significantly speed up the contract signing process. These tools allow for secure and legally binding electronic signatures, eliminating the need for physical signatures and reducing turnaround times.
Configure your contract management process to send contracts to clients for electronic signature after internal approvals are complete.
Signeasy: How to send a document for signature
Make sure that the eSignature provides robust security features and complies with legal requirements for electronic signatures.
Ask questions to get more clarity:
Does the eSignature tool offer encryption, audit trails, and authentication options? Are electronic signatures legally binding in the jurisdictions where you operate? Does the tool provide an audit trail for signed documents?
7. Set up automated reminders and alerts Automated notifications for contract milestones, renewals, and expirations can prevent missed deadlines and ensure timely actions.
Signeasy: How to track contract status and send reminders
A. Identify key milestones Determine the key milestones in your contract lifecycle that require reminders, such as renewal dates and expiration deadlines.
Create a list of all critical contract milestones that need to be monitored.
B. Configure automated alerts Set up automated alerts and notifications to remind stakeholders of upcoming milestones and required actions. Customize alert preferences, including the timing and method of notifications.
For example, configure the system to send email reminders 30 days before a contract's expiration date.
C. Ensure timely actions Ensure that stakeholders act on the reminders and complete required tasks promptly. Regularly monitor alert logs to ensure that reminders are being received and acted upon.
8. Centralize contract storage Using cloud-based storage solutions provides centralized access to all contracts. A searchable repository makes retrieving and managing contracts easy, enhancing visibility and control.
A. Choose a cloud-based storage solution Select a cloud-based storage solution that offers robust security, scalability, and search capabilities.
Ask yourself the following questions:
Does the storage solution comply with data protection regulations? Is the solution scalable to accommodate your growing contract repository? B. Organize contracts into a central repository Upload all contracts into a centralized repository, organizing them into logical categories for easy retrieval. Organize contracts into folders and use tags to categorize them by type, date, or department.
C. Use advanced search features Ensure that the storage solution provides advanced search features to locate specific contracts or clauses quickly.
9. Training and onboarding Train your team on how to use contract management software. Provide comprehensive training sessions and resources to ensure everyone is comfortable with the new processes. Effective onboarding is key to successful adoption.
Plan and schedule training sessions for different user groups. Help users understand what are the key features that users need to learn.
A. Provide comprehensive resources Offer a variety of training resources, including user manuals, video tutorials, and FAQs.
Actionable Item:
Develop user-friendly training materials that cover all functionalities of the system, such as step-by-step guides and video tutorials that walk users through common tasks.
Check out Signeasy’s step-by-step video tutorials to automate contract workflows .
B. Conduct hands-on training Allow users to practice using the system through hands-on training sessions and workshops. Conduct interactive workshops where users can practice tasks and ask questions.
10. Monitor and optimize Regularly monitor key performance indicators (KPIs) to assess the effectiveness of the contract automation system. Define metrics such as time to approval, error rates, and user satisfaction.
Collect user feedback to understand their experiences and identify any challenges they face. Use surveys and feedback forms to gather input from users.
Make necessary adjustments to workflows, templates, and system configurations based on feedback and performance data.
Ask yourself the following Questions:
What changes can be made to streamline processes further? How can the system be enhanced to meet user needs better? Top 10 contract automation software features Now that you've got the idea of how to automate contracts throughout their lifecycle, let's explore some of the features that can really help you with contract automation. If you're ever in doubt about which software is right for your business, just come back to this guide to make a smart choice.
1. Premade and reusable templates Why it matters: Premade and reusable templates streamline the contract creation process by allowing you to put contracts on autopilot. They enable teams to quickly generate consistent contracts without starting from scratch every time. This consistency not only saves time but also ensures that all necessary legal language and clauses are included, reducing the risk of errors.
Who needs it: Ideal for teams that frequently handle similar types of contracts, such as sales, procurement, or HR departments.
Decision tip: Choose a solution that allows easy customization of templates to fit your specific needs. For example, Signeasy users can create templates for frequently used contracts with pre-assigned roles and specified fields. You can easily send unlimited templates for signing, which reduces the need for repetitive manual work.
2. Bulk contract management Why it matters: Managing contracts in bulk can drastically reduce the time and effort needed to handle large volumes of agreements. This feature allows teams to perform actions like sending, signing, and approving multiple contracts at once, which is far more efficient than processing each contract individually.
Who needs it: Ideal for organizations that handle large-scale contracts, such as procurement teams dealing with vendor agreements or HR teams managing employee contracts.
Decision tip: Ensure the tool can manage bulk actions with ease, reducing the manual effort required and allowing for better scalability. Contract automation tools like Signeasy let you upload any file type (PDF, Word, PNG, etc.) and batch them into envelopes for one-time signing.
3. eSignature integration Why it matters: eSignature integration streamlines the contract signing process, making it faster and more secure. It ensures that contracts are signed in a legally binding manner. For example, Signeasy supports digital signatures that comply with legal standards like ESIGN, eIDAS, and HIPAA.
Who needs it: Any organization that values speed and security in the contract execution process, especially those in finance, legal, and HR.
Decision tip: Look for eSignature solutions that comply with industry standards, such as Adobe Sign, Signeasy, or Docusign, to ensure the legality and security of signed documents.
4. Sequential signing Why it matters: Sequential signing ensures that contracts are signed in the correct order by all relevant parties. This feature is particularly useful for complex agreements that require multiple approvals, as it prevents bottlenecks and ensures that the process flows smoothly from start to finish.
Who needs it: Ideal for teams managing contracts that require multi-step approvals, such as large sales agreements or legal documents.
Decision tip: Opt for software that allows you to customize the signing order and provides clear tracking of where each contract is in the signing process. For example, With Signeasy, you can set a specific signing order, notify signers when it’s their turn, and automate the entire process without needing to intervene.
5. Automatic reminders Why it matters: Automatic reminders help teams stay on top of important contract deadlines, such as renewals or expiration dates. This feature prevents missed deadlines and reduces the risk of penalties or disruptions to business operations.
Who needs it: Valuable for any organization that manages multiple contracts with critical deadlines, such as procurement teams or legal departments.
Decision tip: Choose a tool that allows for customizable reminders tailored to specific contract types and deadlines. For example, Signeasy’s auto-reminders can be set up to trigger on specific days, such as day 1 and day 7, helping to prevent bottlenecks and ensure timely completion.
6. Set reminders Why it matters: Setting reminders helps teams keep track of key contract milestones, such as review dates, renewals, and expirations. This feature reduces the likelihood of missed opportunities or lapses in service due to overlooked deadlines.
Who needs it: Ideal for any organization that manages contracts with time-sensitive elements, including legal teams, HR departments, and vendor management groups.
Decision tip: Choose a tool that offers flexible reminder settings, allowing you to schedule notifications based on your specific needs. Signeasy’s reminder feature lets you customize alerts to trigger at intervals you define, ensuring you have ample time to act. You can also set it
7. Data-packed dashboards Why it matters: Data-packed dashboards provide a comprehensive view of your contract portfolio at a glance. They allow you to track key metrics such as contract status, upcoming deadlines, and performance indicators. This feature eliminates the need for manual data entry and reporting, offering real-time insights that help you make informed decisions quickly.
Who needs it: Essential for managers and decision-makers who need to stay on top of contract performance and ensure that nothing slips through the cracks.
Decision tip: Look for dashboards that allow you to monitor contract stages, track team usage, and download reports to evaluate efficiency.
8. Multiple user access Why it matters: Contract automation software with multiple user access ensures that different team members can collaborate on contracts without stepping on each other's toes. This feature allows various teams—like IT, sales, marketing, and legal—to work simultaneously while maintaining control over who can view, edit, or approve documents.
Who needs it: Perfect for large organizations with cross-functional teams that require seamless collaboration on contracts.
Decision tip: Ensure that the software offers granular permission settings so you can control access levels for different users. For instance, tools like Signeasy let you invite team members easily and control access with roles and permissions.
9. Easy integrations Why it matters: Easy integrations enable your contract management software to connect with other essential tools like CRMs, ERPs, and Cloud storage. This integration simplifies workflows by allowing data to flow seamlessly between platforms, reducing manual input and errors.
Who needs it: Crucial for businesses that rely on multiple software systems to manage their operations, such as sales teams using CRM or HR departments managing employee contracts.
Decision tip: Choose a tool that integrates with your existing software stack to maximize efficiency and minimize disruption.
10. Auto storing Why it matters: Auto storing ensures that all executed contracts are automatically saved in a secure, centralized repository. This feature eliminates the risk of losing important documents and makes it easy to organize and retrieve contracts when needed, enhancing overall efficiency and compliance.
Who needs it: Essential for organizations that handle a high volume of contracts, particularly those in regulated industries like finance or healthcare, where document retention and quick access are critical.
Decision tip: Look for a tool that offers secure and automatic storage of contracts, with features like search and tagging for easy retrieval. For example, Signeasy’s auto-storing feature securely saves all signed contracts in a central location and in your SharePoint, ensuring they’re always accessible and organized, ready for audit or review.
How can AI help in contract review automation? Artificial Intelligence makes the review process faster, more accurate, and less labor-intensive. Here’s how AI can enhance contract review:
1. Key Terms Extraction AI can quickly analyze contracts and extract key terms and clauses. This means you no longer have to search through lengthy documents to find important information manually. For example, AI can highlight payment terms, renewal dates, and confidentiality clauses, ensuring that you never miss crucial details.
2. Smart Q&A With AI, you can ask questions about the contract and get quick, accurate answers. This feature allows you to query the AI about specific terms or conditions within the contract. For instance, you can ask, “What are the termination conditions?” or “When is the payment due?” and receive immediate, precise responses. This makes the review process much more efficient.
3. AI Summary AI can provide concise summaries of lengthy contracts, giving you a quick overview of the document’s key points. This is particularly useful for busy professionals who need to understand the main aspects of a contract without reading every word. AI-generated summaries can highlight the most important sections, such as obligations, deadlines, and key terms, saving you time and effort.
What contract automation means for different teams Contract automation can significantly impact various organizational departments by streamlining processes. Here’s how contract automation benefits different teams and the common contracts they handle:
1. Sales Teams For sales teams , speed and accuracy in contract management are crucial. However, they frequently juggle multiple contracts, spending valuable time creating, customizing, and following up on agreements. Automation allows them to quickly generate contracts from templates and track their progress, enabling them to close deals faster and dedicate more time to building customer relationships.
2. Operations teams This team is frequently tasked with managing technical contracts like software licenses and service-level agreements (SLAs), which can be time-consuming to track and maintain. Automating the management of these contracts reduces the risk of oversight, ensures compliance, and frees up time for IT and operations to focus on innovation and system improvements.
3. Procurement teams This team often gets bogged down in managing vendor agreements, and purchase orders, and ensuring compliance with procurement policies. Contract automation enables efficient management and compliance for procurement teams . By automating the contract creation and approval process, procurement teams can speed up the procurement cycle, ensure policy compliance, and focus on negotiating better terms with suppliers.
4. Legal teams Legal teams often spend a lot of time drafting, reviewing, and approving contracts, as well as ensuring compliance with legal standards. By automating these routine tasks, legal teams can cut down on time-consuming manual work, reduce errors, and focus more on complex legal matters that require their expertise.
5. Human resources HR teams spend a significant amount of time preparing employment contracts, managing onboarding paperwork, and ensuring that all documentation is complete and compliant. Automation streamlines the creation and management of HR documents, reducing the administrative burden and allowing HR professionals to focus on improving employee experience and retention.
6. Finance department Finance teams often spend hours managing contract renewals, processing invoices, and ensuring that payment terms are followed. Automating these processes ensures timely renewals, accurate invoicing, and better financial management, allowing finance teams to focus on strategic financial planning and analysis.
7. Real estate professionals Agents and brokers often spend considerable time preparing and processing lease agreements, purchase contracts, and other critical documents. Automating these processes allows real estate professionals to complete transactions more quickly and accurately, freeing up time to focus on client relationships and closing deals.
Contract automation in different industries Contract automation benefits various industries with unique requirements and common contract types. Here’s how it impacts different sectors:
1. Tech industry The tech industry thrives on rapid scaling and efficient collaboration. Here’s how contract automation helps tech companies.
Rapid scaling with efficient contract management: Automation supports the tech industry’s need for rapid scaling by efficiently managing high volumes of contracts.Improved collaboration with partners and vendors : Automated systems streamline contract workflows, facilitating better collaboration with partners and vendors.2. Healthcare Contract automation helps healthcare organizations by streamlining processes and compliance.
Streamlined patient consent forms and insurance agreements : Automation simplifies handling patient consent forms and insurance agreements, ensuring timely processing.Compliance with Healthcare regulations : Automated compliance checks help healthcare organizations adhere to strict regulatory requirements.3. Banking and financial services Security and compliance are paramount in banking and financial services . Here’s how contract automation helps.
Secure and compliant handling of financial agreements : Automation ensures that financial agreements are handled securely and comply with regulatory standards.Faster processing of loan agreements and other financial contracts : Automated workflows speed up the processing of loan agreements, improving customer service.4. Construction The construction industry benefits from efficient project management and real-time tracking.
Efficient management of project contracts and subcontracts : Automation simplifies the management of complex project contracts and subcontracts, ensuring timely approvals and renewals.Real-time tracking of contract status and milestones : Real-time tracking features provide visibility into contract status, helping manage project timelines effectively.5. Real estate Real estate professionals can improve client experiences and streamline property transactions.
Simplified property agreements and lease contracts : Automation simplifies the creation and management of property agreements and lease contracts, reducing errors and delays.Improved client experience with faster turnaround times : Faster contract processing increases client satisfaction by providing quick and efficient service.Best contract automation software Contract automation software can greatly enhance the efficiency and accuracy of managing contracts. Choosing the right contract automation software depends on your specific needs and business processes.
Here are some of the best contract automation tools available.
1. Signeasy Signeasy is a contract automation software that stands out for its ease of use, robust features, and seamless integration capabilities.
It offers a centralized repository for all your contracts, ensuring easy access and enhanced visibility. Signeasy's automated workflows streamline the approval process, reducing delays and improving efficiency.
With features like real-time tracking, automated reminders, and secure eSignatures, Signeasy ensures that your contracts are managed efficiently and comply with all legal standards.
It integrates well with popular business tools like CRM and ERP systems, making it a versatile solution for businesses of all sizes.
Key features:
User-friendly interface Automated workflows for approvals Real-time tracking and automated reminders Secure, legally binding eSignatures Centralized storage for easy access and management Seamless integration with CRM, ERP, and other business systems Request Demo to see how Signeasy can automate contract workflow for your business.
2. Docusign Docusign is a widely recognized contract automation tool known for its robust eSignature capabilities. It allows users to prepare, sign, and manage contracts electronically, ensuring fast and secure transactions.
Docusign offers various integrations with other business applications and provides comprehensive audit trails for compliance.
Key features:
Industry-leading eSignature functionality Customizable templates Integration with a wide range of business tools Detailed audit trails and compliance features Compare Signeasy vs Docusign
3. Adobe Sign Adobe Sign, part of the Adobe Document Cloud, provides a comprehensive solution for contract automation. It offers powerful eSignature capabilities, automated workflows, and integration with Adobe Acrobat and other Adobe products.
Adobe Sign is known for its reliability and extensive feature set, making it suitable for businesses using other Adobe products.
Key features:
Integration with Adobe Acrobat and other Adobe products Automated workflows and eSignatures Mobile-friendly for signing on the go Advanced security and compliance features Compare Signeasy vs Adobe Sign
4. PandaDoc PandaDoc is a versatile contract automation software that simplifies the creation, approval, and signing of contracts.
It offers a range of customizable templates, document analytics, and CRM integrations. PandaDoc's user-friendly interface and robust features make it a popular choice for sales teams and small businesses.
Key features:
Customizable templates and document creation tools Integration with CRM systems Real-time document analytics eSignature functionality Compare Signeasy vs PandaDoc
5. ContractWorks ContractWorks is designed specifically for contract management, offering features like automated reminders, secure storage, and easy contract creation.
It focuses on simplicity and efficiency, making it ideal for businesses looking to streamline their contract management processes without the complexity of larger systems.
Key features:
Easy-to-use interface Automated reminders and notifications Secure, centralized storage Simple contract creation and management tools Simplify Contract Automation with Signeasy If you work with contracts regularly, you know how time-consuming and error-prone the process can be. Manual contract management often leads to delays, inconsistencies, and compliance headaches. Contract automation offers a solution by streamlining workflows, reducing errors, and ensuring every contract meets legal standards.
Automating your contract management brings several key benefits: it enhances efficiency and speed by cutting down the time spent on drafting, reviewing, and approving contracts. It improves accuracy and compliance by using standardized templates and automated checks, minimizing errors and ensuring all contracts are legally sound. Additionally, it offers better tracking and control through centralized storage and real-time updates, giving you full visibility over all contracts.
Signeasy is designed with these needs in mind. It's a user-friendly platform that integrates seamlessly with your existing systems, making it easier to manage your contracts efficiently and accurately. With Signeasy, you get centralized storage, real-time updates, automated reminders, and robust compliance features, tailored to streamline your contract management.
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