How to automate contracts for faster management processes
Every hero’s journey begins with a struggle, and in the world of business, the nemesis is often the manual contract process. Missed deadlines, endless revisions, and signatures that never seem to arrive—sound familiar? Each new revision and delay feels like an obstacle in an epic saga, but unlike those fictional heroes, you don’t have to face these challenges alone. Enter contract automation, the game-changing solution that turns the tide. By streamlining every step—from drafting to signing—automation removes the friction from the process, making it smooth, quick, and predictable. No more wasted hours tracking down the right version or scrambling for signatures. With the right tools like Enty, you can ensure your business story ends on a high note, with the satisfying conclusion of a “deal done!”
The benefits of contract automation
Contract automation is more than just a convenience—it's a strategic investment. By utilizing contract automation software, businesses can address key pain points while unlocking important advantages, including:
Time savings: manual contract creation processes often involve hours of data entry, version control, and back-and-forth reviews. Contract automation tools handle these repetitive tasks effortlessly, reducing the time required for contract generation.
Improved accuracy: errors in legal documents can lead to serious consequences. Automated systems minimize risks by ensuring consistency in formatting, data, and terms across all contracts.
Enhanced efficiency: centralized storage and searchable databases simplify the management and retrieval of contracts. Automation transforms how contracts move through the legal operations team, enabling quicker approvals and better workflows.
Cost reduction: by automating manual processes, businesses significantly cut administrative expenses, allowing legal teams to focus on strategic matters instead of operational inefficiencies.
Compliance assurance: legal teams can embed compliance protocols directly into the contract automation platform, ensuring that contracts adhere to legal and regulatory standards without manual oversight.
If you're constantly struggling with drawn-out manual processes, now's the time to explore how contract automation software can transform your operations.
Steps to implement contract automation
Moving to an automated system might seem daunting, but breaking it down into actionable steps can simplify the process. Here's how you can get started:
Step 1: Evaluate your current workflow
Begin by identifying inefficiencies in your current contract lifecycle. Are manual approvals slowing down processes? Are inaccuracies in data entry leading to delays? To achieve this, audit each stage of your contract process, from drafting to execution and renewal. Pay close attention to recurring tasks like clause modifications or approval delays. Use this audit to create a list of specific tasks and workflows that would benefit the most from automation. Additionally, involve stakeholders in this evaluation to gather insights into common frustrations or pain points they experience in the process. A clear understanding of these will help in setting measurable objectives for automation.
Step 2: Choose the right contract automation platform
Select a solution that aligns with your business needs. Look for features such as customizable templates, integration options, analytics, and scalability. Research platforms that offer robust security measures like data encryption and audit trails to protect sensitive contract information. Choose a solution that grows with your business, supporting increased contract volumes and additional features as required.
Platforms like Enty excel in this space, offering an all-in-one solution that handles every aspect of contract (and back-office) management. From concise templates and contract creation process, to editing to e-signatures and recurring invoices, Enty ensures your contract automation is seamless and hassle-free. Enty Finances can also integrate smoothly with your existing systems to show transactions, outgoings and incomings and much more - together, all this enables a quicker transition with minimal disruption. Plus, Enty’s client managers and onboarding processes make it easier to start your automation journey without headaches.
Step 3: Standardize templates
Before automating, ensure you have standardized templates for frequently used contracts like NDAs, service agreements, and purchase orders. This eliminates inconsistencies and accelerates contract generation. To do this, create a repository of your most commonly used contracts and review them for variations. Standardize key clauses, legal terms, and formatting across all templates. Engage legal counsel to ensure these templates meet compliance and industry standards. Additionally, design templates with modular sections so they can be easily customized without deviating from the original structure. For example, use placeholders for party names, dates, and terms to make contracts more flexible while retaining uniformity.
Step 4: Integrate with existing tools
The best contract processes work effortlessly with your existing systems. Ensure your automation platform integrates with CRM tools, document storage platforms, and e-signature software to create a unified workflow. Assess your current software ecosystem and create a checklist of required integrations, such as linking with your accounting software for payment tracking or HR systems for employee agreements. APIs (Application Programming Interfaces) can be instrumental in creating a seamless connection between tools, so prioritize platforms that provide robust API support. Ensure your IT team is involved in this integration process to prevent compatibility issues and minimize downtime.
Step 5: Train and onboard your team
Adopting new technologies always involves a learning curve. Make sure your legal operations team is well-trained to use the platform effectively. Start with a phased rollout to specific departments before company-wide implementation. Offer hands-on training sessions, including live demonstrations and interactive tutorials. Create quick reference guides or FAQs to address common issues. Encourage feedback from team members during the training period to address potential roadblocks early. Highlight how automation will reduce their workload and improve efficiency, ensuring buy-in across the organization. Designate 'super users' or champions who can provide additional support and encouragement to their colleagues.
Step 6: Monitor and refine
Automation is an ongoing process. Use feedback from your team to identify areas for improvement and refine your workflows for optimal efficiency. Implement key performance indicators (KPIs) such as the average time to contract completion, error rates, and the volume of contracts processed. Regularly review these metrics to identify trends and bottlenecks. Conduct periodic team meetings to gather insights about the platform's usability and discuss suggested improvements. Stay updated with software updates or new features introduced by your automation platform, as these could enhance your workflows further. Document any adjustments to workflows or processes for future reference and training purposes.
Implementing contract automation doesn't have to be complicated, especially when you're equipped with the right tools and strategies. Luckily, Enty is here to help.
Key features of effective contract automation tools
When selecting a contract automation tool, it’s essential to understand what features truly make a difference. The right platform doesn’t just automate—it transforms your contract management process, ensuring efficiency, accuracy, and scalability. Here are the must-have features to look for in a robust solution.
Template management: quickly generate contracts using pre-approved templates. These templates should support dynamic fields that automatically populate with relevant data, reducing repetitive tasks and minimizing human errors. Standardized templates also ensure compliance with legal and organizational policies.
Data integration: reduce data entry errors by pulling information directly from your CRM or other databases. Seamless integration with existing tools like ERP systems or financial software not only streamlines data handling but also improves accuracy and collaboration across teams. This ensures that contracts reflect the most up-to-date information, saving time and reducing the risk of costly errors.
E-Signature integration: allow clients and stakeholders to sign contracts digitally, ensuring faster approvals. This feature should support multi-party signing, accommodate different legal requirements for signatures, and provide an audit trail for authenticity. A robust e-signature system improves efficiency and removes the bottleneck of physical sign-offs, especially for remote collaborations.
Version control: track changes efficiently with an organized version history of every document. Comprehensive version control should allow users to compare versions, identify specific changes, and revert to earlier drafts if needed. This ensures transparency and minimizes disputes over the content of the contract.
Notifications and alerts: stay informed with reminders for upcoming renewals, deadlines, or required actions. Advanced systems may also include predictive alerts, suggesting renegotiation opportunities or flagging potential compliance risks well in advance. These features help businesses stay proactive rather than reactive.
Audit trails: keep track of who accessed or modified a contract for added security and accountability. Detailed logs showing time stamps, user actions, and access history are essential for compliance and for building trust among stakeholders. These logs provide a reliable way to trace issues back to their source if needed.
These features not only improve efficiency but also ensure that your contract processes remain seamless and scalable as your business grows. Enty already offers most of these essential features, including customizable templates, seamless integration options, e-signatures, and even adding countrparties in case your contract requires a few signatures, making it a standout choice for businesses seeking streamlined solutions. By choosing Enty, you’re not just investing in contract automation—you’re setting up your business for holistic back-office success. Whether you're dealing with contracts, compliance, or financial workflows, Enty provides a unified solution that scales with your business needs. Streamline, automate, and manage with Enty to ensure you stay ahead in a competitive landscape.
Use cases and examples of contract automation
Contract automation isn’t just for one type of business—it can streamline workflows across a wide array of industries. Whether you’re a startup, a legal professional, or a small business, automation can transform the way you manage contracts, making the entire process faster, more efficient, and less prone to error.
Startups: when you're scaling quickly, the last thing you want is to be bogged down by the tedious task of drafting and managing contracts. Contract automation tools can simplify the process, ensuring that you can easily generate NDAs, partnership agreements, and employment contracts without the usual hassle. This means less time spent on paperwork and more time focusing on growth.
For instance, a tech startup may have dozens of NDAs with potential partners. By automating the process, they can ensure that every agreement is consistent, legally sound, and sent out for signatures with minimal manual input.
Legal professionals: for legal professionals, especially those handling routine agreements like lease contracts, client retainers, or service agreements, automation tools can drastically increase productivity. Imagine reducing the time it takes to draft and review these contracts by half, all while maintaining a high level of accuracy. Automation also ensures that templates are consistent, reducing human error and enabling quicker turnaround times for clients.
Consider a law firm that handles hundreds of lease agreements each year. With contract automation, they can populate and send these agreements much more efficiently, freeing up valuable time to focus on more complex cases.
Small businesses: small businesses often juggle multiple vendor agreements, service contracts, and sales deals at once. Managing these manually can lead to confusion, missed deadlines, or errors in terms and conditions. Contract automation allows for the easy generation of these documents, ensuring that all contracts are in line with business needs and can be executed swiftly.
A great example comes from a small branding agency that was previously using manual processes to draft client agreements. This often resulted in delayed timelines and lost business opportunities. After implementing Enty’s automation system, the agency reduced its average contract creation time by 50%, improved document accuracy, and freed up significant time for more client-facing activities. As a result, they closed more deals and enhanced client satisfaction.
Enterprise-level companies: for large corporations, managing thousands of contracts across various departments can be an overwhelming task. Automation tools ensure that the contracting process is streamlined across teams, with documents that are easy to track, update, and manage. Whether it’s employee agreements, procurement contracts, or licensing deals, automation helps ensure compliance and faster execution while reducing the overhead costs associated with manual processes.
For example, a global corporation dealing with international contracts could use automation to adapt to the ever-changing regulatory landscape, ensuring compliance across different jurisdictions and faster processing of cross-border agreements.
By adopting contract automation, businesses of all sizes can experience tangible benefits. Time is freed up for more critical tasks, mistakes and inconsistencies are minimized, and contracts are executed in a fraction of the time compared to traditional methods. Companies that embrace automation, like the branding agency example, often see an immediate ROI through more efficient operations, faster deal closures, and a reduction in legal risks. In short, your business could experience similar benefits by switching to contract automation, ultimately improving both operational efficiency and bottom-line results.
Best practices for successful contract automation
Contract automation can revolutionize how businesses manage agreements, but achieving success requires careful planning and execution. To get the most out of automation, consider the following best practices:
1. Start small
Don’t attempt to automate every contract process all at once. Focus on high-volume, repetitive documents, such as NDAs, employment agreements, or supplier contracts. These types of documents often involve straightforward terms and minimal negotiation, making them ideal candidates for early automation. As your team gains confidence and expertise with the platform, gradually expand automation to include more complex contract types like master service agreements or partnership agreements.
2. Collaborate across departments
Engage relevant stakeholders, including your legal operations team, sales department, procurement team, and HR, to ensure everyone is aligned on the platform's implementation. Early collaboration helps identify specific needs and challenges each department faces, allowing you to customize automation solutions accordingly. For example, sales teams may prioritize speed, while legal teams may focus on compliance and accuracy. Regular feedback sessions can further improve adoption.
3. Prioritize security
Contracts often contain sensitive data, making security a top priority. Ensure the automation tool adheres to the highest data protection standards, such as encryption, secure user authentication, and compliance with regulations like GDPR or SOC 2. Evaluate the platform’s ability to provide access controls, enabling only authorized personnel to view or edit certain documents. Regularly review security settings to align with evolving cybersecurity threats.
4. Customize your workflows
Every business is unique, and your contract workflows should reflect that. Use the automation platform’s drag-and-drop workflow builders or pre-built templates to map out processes that fit your organization’s specific needs. For instance, incorporate automated approval chains for contracts exceeding certain dollar values or designate fallback approvers to prevent bottlenecks. By tailoring workflows, you ensure optimal alignment with your organizational structure.
5. Leverage automation tools
Tracking key metrics helps you measure the effectiveness of your automation efforts. Metrics such as average contract approval time, error reduction rates, and cost savings provide insights into process efficiency. Additionally, monitor which departments generate the most contracts or experience delays to pinpoint areas for improvement. Regular reporting also ensures compliance and demonstrates ROI to stakeholders.
6. Ensure scalability
Choose a contract automation platform that can grow with your business. Evaluate features such as user license flexibility, multi-language support, and the ability to handle increasing contract volumes. As your company expands globally, ensure the platform complies with international laws and integrates seamlessly with global ERP systems.
7. Regularly update templates
Contract templates should evolve alongside your business needs. Regularly review and revise templates to reflect regulatory changes, new business practices, or industry standards. For example, if your industry adopts new sustainability clauses, integrate these updates across all relevant templates. Keeping templates current ensures compliance and reduces manual adjustments.
8. Invest in training and support
Even the most intuitive automation tool requires some level of onboarding. Conduct comprehensive training sessions to ensure all team members understand the system’s capabilities. Offer refresher courses, especially when the platform is updated with new features. Designate a go-to support person or team to address issues quickly and maintain momentum.
9. Manage vendor relationships
If your contracts involve third-party vendors or clients, it’s essential to communicate changes clearly. Introduce new processes to your external partners and explain the benefits, such as faster approvals and greater transparency. Providing simple guides or walkthroughs can encourage partner adoption of automated workflows.
10. Audit and optimize regularly
Automation is not a "set it and forget it" process. Schedule periodic audits of your workflows to identify inefficiencies or outdated practices. Gather feedback from users and use analytics to refine processes, making them even more streamlined over time. Optimization ensures your automation strategy stays effective and relevant.
Final thoughts
It's not magic, it's automation. For many businesses, managing contracts feels like an endless juggling act—always trying to keep every clause, signature, and deadline in perfect harmony. But it doesn’t have to be this way. Contract automation tools bring precision and simplicity to even the most complex agreements. They take care of the heavy lifting, leaving you free to focus on strategy, relationships, and growth. It’s not magic—it’s smart, efficient technology designed to make your business more agile and successful. Are you ready to embrace the future with Enty?
