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In an ever-changing business environment, keeping up with the latest technological tools is essential in maintaining a competitive edge. One good example of this is using automation to streamline workflow. For instance, Chrometa’s automated time tracking software enables users to automatically log the time they spent on a task under a project or client, helping them save time and extra effort. Automation also plays a role in some crucial aspects of a business, including contract renewal and management.

According to a Legal Dive article, nearly 30% of companies encountered increased legal spending due to improper contract renewal management and other regulatory complexities. This prompts the need for a thorough contract management system to let your enterprise grow without incurring any legal problems along the way, and contract renewal software can help you do that. Here’s why you should invest in one:

What is contract renewal management?

Contract renewal management involves drafting a new agreement, reviewing rights and obligations, tracking payments or any possible violations, and compliance with the negotiating terms. It also includes recordkeeping of agreements for easier review and access. It is a crucial part of any business because it ensures that third parties – whether partners or clients – are on the same page to avoid future problems. 

Manually renewing contracts can be time-consuming, so contract management software helps reduce the contract renewal time you can potentially spend on more valuable tasks. This type of software automates tasks related to creating, renewing, and managing contractual obligations. Softrax’s contract renewal management software consolidates all contract renewal management tasks in one platform, allowing easier tracking of contract status and access to data. It also helps law firms and businesses have a detailed look into the lifecycle of their contracts to anticipate renewal dates and track payments or violations, and it even customizes a contract renewal template based on the client — making contract renewal management more convenient.

Here are some benefits of contract management software that you can leverage:

It saves time 

A New York Times article reported that more than half of US workers surveyed in 2021 said they were feeling burned out due to various job demands, which may affect work productivity in tasks like managing contracts. Manually managing contract renewals can take time and contribute to stress and burnout. Thankfully, contract management software eliminates the need to manually write contracts from scratch every time by providing templates that can speed up the process of creating a new contract. It also helps your employees focus on other tasks, like keeping track of case filing deadlines and indexing legal documents, that help increase productivity in your law firm.

It provides reminders 

Failing to renew contracts on time violates terms and can cost 9% of your firm’s net income, according to World Commerce and Contracting. Fortunately, contract management software increases the renewal awareness of law firms and businesses. By sending notifications reminding you that contract expiration or renewal is approaching, contract management software can help you stay up-to-date with contract deadlines and avoid potential losses, which could otherwise lead to a bad reputation.

It reduces errors and allows easy storage

Manual contract renewal management can be prone to errors, especially without tools that can efficiently check for accuracy. A Forbes report mentioned that such mistakes can cost businesses millions annually. This makes investing in automation tools like contract management software all the more critical since it minimizes manual operations that can lead to manual errors. Through automated software, businesses and law firms can conveniently store and access contracts in one centralized repository, allowing easy monitoring and double-checking of contract history for auditing purposes.  

There are many reasons why you should invest in contract renewal software. From reducing time and errors to providing important reminders and easy storage, contract renewal management software can help your business boost productivity and accuracy in managing agreements.

Written by Shirley Austin for chrometa.com