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Automating contract processes is a must for any contract management software. It allows teams to Steps in the contract workflow to automate the entire process, which makes the entire process more efficient and gives the legal team and other team members more time for more important matters.
In simple terms, a contract workflow is the continuous process in which a legal document goes through various phases, such as initiation, execution, renewal, and so on.
The benefits of automating contract management workflow
1. More reliable contracts through the use of standardized, pre-approved templates
Your legal team can keep contract and clause template libraries up to date to meet ever-changing legal requirements. This ensures that managers always use the most effective contract templates.
Automated workflows also ensure that contract authors use the company's preferred positions and alternative options when negotiating. This means that you and the company can rely on legal work regardless of who drafts the agreement. Transactions can be faster and lawyers no longer have to review the same basic wording over and over again.
2. Contracts can be automatically forwarded and approved at the same time
With automated contract workflows, no more time is wasted searching inboxes for agreements or following up on someone via email.
Collaboration no longer needs to be fragmented and the entire transfer process can be standardized. Collaboration becomes seamless and measures can be taken quickly thanks to the automatic forwarding of contracts to the responsible auditors.
top.legal enables you to work directly with your entire team or partners on an equal footing or to manage contracts digitally. Internal and external users can quickly reach agreements and execute contracts using collaborative authoring and automated workflows.
If certain stakeholders are unable to complete their part of the process, bottlenecks may occur. Instead of delaying the time until a contract is closed, automated workflows can be used to create multiple approval groups within each internal workflow phase.
3. Compliance with corporate governance protocols is much easier
To ensure regulatory compliance, companies can incorporate business rules and guidelines into automated workflows. For example, you can create a workflow for routing contracts that does not allow final approval until all edits and issues have been addressed and all necessary approvals have been obtained. On-demand audit trails and customized dashboard views help you monitor compliance at all stages.
4. Increased transparency through audit logs and monitoring analyses to identify challenges and risks
Audit trails are an essential part of contract responsibility. Because the system records every step that each user takes throughout the contract life cycle, an administrator can review the logs to see who did what on a particular contract. This information cannot be changed or edited. This significantly reduces the risk if something doesn't go as planned. At the same time, the system can provide analytics to help teams stay up to date on all aspects of a contract. The data can also point to potential areas for improvement.
5. By automating contract processes, legal teams can save time, effort, and money
Automating contract processes allows legal teams to focus on value-adding work, which saves time. According to Aberdeen Research, the administrative costs associated with contracts are reduced by 25-30% through the implementation of automation.
The aim of Workflow automation software is to improve the efficiency of processes. By automating processes, users can spend more time on important, high-quality tasks. Replacing manual design processes with a generator of standard contractual clauses, for example, speeds up the speed at which your organization can complete data transfers and process data for business operations. Automating contract processes can help with a wide range of administrative tasks that inhibit productivity
