Paper-based contract management is inefficient and costly—there are no two ways about it. Even if you have the most diligent staff, it won’t be long until they complain about undue stress and burnout. While it’s true that the challenges of paper-based processes aren’t always visible to the eye, they can lead to big problems if left unattended. So, what’s the solution?
Read on as we discuss how contract automation takes a lot of pressure off your team by streamlining the entire contracting process. We’ll also cover a few expert tips on how to choose the right contract automation software for your business.
Let’s jump right in!
What is contract automation?
Contract automation involves automating and standardizing every contract-related process, from initial drafting to review, negotiation, and approval cycles, to final execution with contract automation software.
What are the key features of contract automation?
Since every software is different, contract automation works may vary for distinct software. However, it is essential to ensure the following key features:
- Contract clause and template library – Non-legal personnel can use pre-approved clauses and templates to generate a contract and send it off in a matter of minutes, without involving the in-legal counsel at all.
- Cloud-based, centralized repository – If your contract automation software includes a secure document repository with powerful search capabilities, you can replace file cabinets or hard drives. Furthermore, it allows your team to manage contracts anywhere and anytime.
- Role-based access control – A centralized repository is a must-have, that’s for sure. But, with the growing threat of data breaches, it stands to reason that not all users should have access to all contracts. A versatile contract automation software would allow you to create roles at different levels:
- Organization
- Contract
- Document
- Task
Then, within the organizational structure, you can define contract types and features that some users can access while others cannot.
- Redlining, approvals, and collaboration tools – The best collaborative software allows everyone to edit, review, and approve documents concurrently. It cuts out needless friction and gets things rolling faster.
- Automated notifications and alerts – If you don’t want to miss any important deadlines or contract obligations, you might want a feature that sends automated reminders. You can choose when you want to receive them, how often, and where (emails, in-app notifications, or both).
- Electronic signatures – This could be anything from a verification number to a Bank ID to a handwritten signature. Integrate your software with multiple e-signature providers so signing parties can select the one that works best for them.
How should you select the right contract automation software?
Before you pick your choice of contract automation software, here are a few questions to consider:
1. What is your “Why”?
You can do a lot with contract automation. Therefore, defining your business goals, challenges, and expectations is essential, as it will help you understand your basic software requirements.
Do some benchmarking. List all the redundant tasks that you think affect the contracting process negatively. Find performance bottlenecks that might make automation necessary.
2. How does your current tech stack work?
Perhaps you’re new to contract automation, and only looking to maximize returns on your current software. In that case, you should ask your teams responsible for handling contracts to share their honest feedback about your existing tech stack. Review the entire contracting process using the tech stack at least twice. Keep an eye on any pain points that a contract automation tool can remove.
3. What are the best available options?
Look up contract automation tools online and compile a list based on user ratings and social data. Pay special attention to any feedback on their ease of use, ease-of-set up, and quality of user support. Read up, also, on their highest and lowest-rated features to be able to make a well-informed decision.
4. Does the price fit your budget?
Once your list is ready, you can begin the cost-benefit analysis. Think about the features that will take your business to the next level and how their price compares with your budget.
The aim is to shortlist every option that checks all your boxes and meets your budget at the same time.
5. Do any of the shortlisted tools offer a free trial?
Now that you have narrowed down your list from dozens to a handful, you can begin requesting demos and free trials from software providers. Then you can see if each tool lives up to its claims and how well it integrates with the processes in your organization.
Conclusion
All in all, choosing contract automation software is less about comparing technical capabilities than it is about articulating how technology can help you achieve your contracting goals. The tips above will help you find a contract automation software that fits your budget and supports your business goals.
Author Bio:
Qurat-ul-Ain Ghazali, aka Annie, is the growth manager at Contractbook and looks after all the organic channels. She has been with tech startups and scaleups for a couple of years with a B2B focus. You can find her socializing, traveling, indulging in extreme sports, and enjoying the local desserts when she is not working.
