Contract automation: what it is, what it is for and how to use it

Contract automation is much more than a simplification of the steps that contracts go through until they are signed. It is a fully technological way to optimize the creation and management of these documents, automating the life cycle of contracts and transforming the way in which companies manage their commercial agreements.

In this article, understand what contract automation is, what it is for and how to use it to bring more efficiency to your document creation and signing processes, and also accelerate the closing of sales and agreements.

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What is contract automation?

Contract automation refers to the use of technology to automate and streamline the process of creating, managing, finalizing, and storing contracts. This involves the use of software or other tools that replace manual and repetitive tasks with automated processes, ensuring greater efficiency, accuracy, and compliance.

How does contract automation work and what is it for?

Contract automation works through several integrated steps, managed by platforms specialized in contract management. In this sense, you can find automations focused on the automated creation of contracts using forms with variable fields, solutions that incorporate electronic signatures, and even systems with centralized document storage.

With a robust contract automation solution, it is possible to automate the entire contract lifecycle, including drafting and reviewing, sending to signers and witnesses, as well as storage and control. All of this, facilitating the validation and execution of contracts in a secure and legally valid manner.

For example, the automation tool can assist in the creation of documents for signature through flows with forms or spreadsheets that collect the data of the person who will sign the contract, generating document templates for signature in an automated manner.

Benefits of contract automation for your business

Leaving manual contract management behind brings a series of advantages to companies that adopt automation. In many cases, these advantages are reflected one over the other. Let's get to know them:

Higher productivity and cost reduction with process standardization

Contract automation sets standards in processes, ensuring a consistent and reliable way of operating. Once a method or flow has proven to be effective, it can be successfully repeated. It should be noted that, even with standardized flows, contracts can still be customized for each client.

With automated and standardized processes, there is a significant increase in efficiency and agility and in the reduction of operating costs, allowing managers to maintain leaner teams focused on strategic activities.

After all, contract automation allows you to track the most varied workflows and to have greater ease and control in conducting the creation, review, and approval/signature phases, resulting in greater productivity and better use of resources.

Greater security in information management and data protection

One of the main advantages of contract automation is the centralization of information. All versions of contracts, from creation to execution and renewal, are stored in a centralized, cloud repository. This makes it much safer - and easier - to find the information you want.

Additionally, automated platforms use encryption and other security measures to protect sensitive information against unauthorized access and data breaches. In other words, automation helps ensure compliance with internal and external regulations, such as the General Data Protection Law (LGPD), by monitoring and controlling access to and use of contractual information.

Accelerate the closing of sales and deals

This is the main benefit for companies seeking to reduce the time to conclude contractual agreements. With automation, it is possible to bring more agility and efficiency to each stage of the process, considerably reducing the need for manual labor.

The creation of contracts, for example, is done quickly and efficiently using pre-defined templates and/or forms with variable fields. At the review stage, contracts can be automatically forwarded to the relevant parties, following a predefined sequence of approvals.

The inclusion of electronic signature solutions also significantly speeds up the finalization of contracts, as we will see below.

How can electronic signatures optimize contract automation?

The electronic signature can be perfectly integrated with the contract automation process, allowing the sending of documents for signature to take place automatically after the completion of other stages of the process.

In this way, it is possible to gain greater agility when closing agreements and contracts and also to have a secure solution that provides legal validity to the signed documents.

At Clicksign, you can use the automation solution to create automated flows for generating and sending contracts for signature from forms or spreadsheets. It is also possible to collect and accept subscriptions through WhatsApp, much easier and faster to close deals.

‍Learn about the solution and automate your document processes.