Traditionally, contract drafting and management has required extensive efforts that could result in errors and take a great deal of time. There were few alternatives or incentives to introduce innovations or changes. Today, you can automate contracts and get them signed in minutes.
Nowadays, corporate legal departments are under increasing pressure to cut costs, increase efficiency, and provide innovative legal services. Contract automation helps firms to fulfil many of these requirements by allowing them to reduce their billable hours, which in turn yields significant savings and increased profitability. In this article, you will find 13 reasons why you should automate contracts to meet the needs of the future.
1. Ease of Outsourcing
Outsourcing routine tasks clear more time to scale up the law practice. The usage of pre-existing forms and templates will cost less and save time. The more tasks you can outsource, the more time you will have to dedicate to billable assignments.
2. Easy Access to Documents
It’s common for lawyers to sacrifice productivity when supporting company staff if they are unable to find the documents they need to share with their clients. By automating your documents, the information will be stored in a way that staff can easily access and reduce the amount of time that lawyers spend looking for documents when clients request them.
3. Risk Management
Human error is an unavoidable facet of modern business. Document automation will remove opportunities for errors and bring a rigour that will guarantee that the main ideas are addressed in all contracts by functioning as a sort of checklist. Also, it helps to ensure that previous documents in which key provisions were erased or marked as not relevant will not be used as the basis for future agreements.
4. Superior Contract Templates
Generally, agreements get longer over time. During the negotiation process, certain issues arise and are added to a contract throughout the formation process. It’s unusual that templates get shortened, and there are often limitations on users when attempting to tailor a Word version of a contract on every particular detail of a deal. Document automation is a reliable way to guarantee that issues will be considered when the contract is created but will only be addressed when they are relevant for the agreement. The final result will be shorter documents with faster negotiations focused on main deal issues.
5. Improved Accountability
By using automation tools, you can facilitate improved collaboration and accountability. Tools used for tracking time will allow the user to monitor who is working, what tasks are being accomplished, and for what duration. Cloud-based document storage also enables multiple parties from different locations to edit the same document in real-time so you can account for the activities of all team members.
6. Reach Iterative Improvements
Document automation allows you to keep templates updated as you find improvements resulting from negotiations and changes on the business products and needs. These adjustments will help you to skip needless negotiations and accelerate the drafting process.
7. Lower prices, Higher Profits
By improving the document creation system, one can save on costs related to lawyers honoraries. When using an automated process, the time spent in document assembly will be greatly reduced. Documents that usually require up to 30 minutes of an attorney’s time can take 10 minutes or less when the process is properly automated. Lower prices mean that you will also be able to attract more clients because you are spending less time on each individual case.
8. Increased Efficiency
Fortunately, the era of painstakingly drafting NDAs, employment contracts, and other documents from scratch are behind us. While using document automation, you can create a vast array of legal documents in a significantly smaller amount of time than in the past.
9. Reduce the Likelihood of Errors
When a legal document has to be repeatedly generated from scratch, or even copied and pasted from an existing document, the likelihood of omissions and errors increases. Document automation will help you to get rid of those concerns, creating document templates that are consistent and accurate every time.
10. Retention of a Firm’s Collective Knowledge
When a lawyer leaves a firm, a lot of potential experience and acquired knowledge can be lost with them. Document automation remedies this issue because it serves as a constant repository of the firm’s history. At the same time, it helps to speed up the onboarding of new lawyers by providing them access to a firm´s past, through which they can understand how it operates.
11. Provide a Better Customer Experience
Nowadays, the speed of delivery is a feature that clients have grown to increasingly demand and expect. The ability to create customized legal documents in a quick and efficient manner provides a better experience while also improving client retention and satisfaction.
12. Automate Contracts to Attract New Clients
Nowadays, clients are technologically savvy and often walk in with high expectations. Document automation can help to deliver on these expectations. Some firms have managed to build websites where potential clients can create a wide range of select contracts using the firm’s document automation software. These potential clients not only obtain the legal documents they need immediately but are also more likely to contact the firm when they have any other legal needs in the future.
13. Inspire Confidence
Documents generated manually carry a higher risk of human errors. Besides the waste of money and time that this initially implies, repeated errors have the potential to seriously damage client confidence. Drafting documents from automated templates that use intuitive methodologies help to ensure consistency and accuracy. The templates are also easy to maintain and alter, which means less work to make sure that hundreds of pages are updated and compliant. The fewer mistakes made, the better chance you have to create and sustain your reputation.
Firms that fail to adopt new technologies and continue operating under old business models run the risk of being surpassed by competitors. With the right automation tools, your law firm can facilitate greater accountability among staff as well as with clients. This type of collaborative, yet controlled access to information allows you to maintain consistency and monitor the activities of all the members at your law firm. A shift to document automation provides yet another competitive advantage over firms that are unwilling to embrace the future.