How Contract Reminder Software Saved Finance Firm from Costly Penalties

Spotlight

A leading finance firm, specializing in tax, faced challenges in keeping track of numerous contract deadlines and renewal dates. With multiple clients and contracts, the firm struggled to make sure that they never missed a key milestone or renewal date, putting them at risk for costly penalties and damaging client trust.

Highlights

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Reduction in Costly Penalties

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Enhance Client Satisfaction

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Increase In On-Time Reminders

Customer’s Speak

Mike Reynolds

Legal Operations Manager

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Managing contracts manually led to missed deadlines, compliance risks, and inefficiencies. With SharePoint Contract Management, automation streamlined workflows, reduced manual effort, and ensured compliance. Now, we focus more on clients instead of paperwork.

Challenges Faced Before Implementing CLM 365

Before adopting system, the finance firm encountered a few challenges that were affecting their day-to-day operations. Here are some few challenges faced by the firm.

1. Lost Track of Contract Deadlines

The firm was overseeing hundreds of active contracts, each with its own set of important deadlines. While managing these contracts manually worked for a while, it became increasingly difficult to keep track of every detail as the number of contracts grew. The team worked diligently to stay on top of everything, but there were instances when a key renewal or deadline slipped through the cracks

2. Manual Reminders Were Inconsistent

Relying on calendars and spreadsheets to track deadlines often led the firm to missed reminders and made it difficult to get a clear overview of upcoming tasks. As a result, important dates sometimes went unnoticed, and it became harder to stay organized with so many moving parts. This lack of visibility created uncertainty and made it challenging for the team to stay ahead of critical contract milestones.

3. Risk of Legal Consequences

As deadlines were occasionally overlooked, the firm faced a rising concern about the possibility of incurring penalties or encountering legal challenges due to non-compliance with client agreements. This growing risk highlighted the need for a more reliable system to ensure all obligations were met on time.

4. Client Trust Was Eroding

The firm faced challenges in consistently meeting contract milestones and renewal dates, which understandably led to some concerns among clients. A few clients mentioned that they were unsure about the firm’s ability to keep track of important deadlines. This highlighted the need for a more reliable solution to help manage contracts efficiently and strengthen client trust.

5. Lack of Centralized Tracking

Given that multiple departments were handling different contracts, it became challenging to establish a single system that everyone could easily access. This sometimes led to communication gaps and occasional oversights, which affected the overall coordination. The firm recognized the need for a more integrated solution to ensure smoother collaboration across teams.

How We Solved It

To help the finance firm overcome these challenges, we introduced a contract reminder software, a feature that would track and notify them of important contract milestones automatically. Here is how we implemented.

Centralized Approach to Store Contracts
CLM 365 brought all contract information into a single, easy-to-access platform. This eliminated the need for employees to sift through various files and systems, making it much quicker and simpler to find the contract data they needed. The streamlined access allowed the team to work more efficiently, saving valuable time and reducing the chance of errors.
Automated Notifications
The system managed deadlines by sending timely reminders well in advance of renewals or reviews. This proactive approach gave employees ample time to act, making sure no important deadlines were overlooked and allowing the team to stay on top of all contract-related tasks with ease.
Alerts and Reminder
The feature contract reminder software provided the firm with the ability to set up timely alerts based on their specific needs, allowing key personnel to be notified well in advance of important deadlines. Whether it was weeks or months ahead, these reminders helped the team stay organized and on top of crucial agreement milestones. With these alerts in place, the firm could confidently manage their contracts without the worry of missing vital dates.
Real-time Updates
With real-time updates, any changes to contract details, such as renewal dates or amendments, were immediately reflected. This ensured that everyone involved had access to the most up-to-date information, keeping the team on the same page and minimizing the chances of errors or miscommunication.
Increased Compliance & Risk Reduction
With all agreement deadlines carefully monitored and timely reminders in place, the firm was able to avoid penalties, ensure full compliance with their agreements, and significantly reduce any potential legal risks. This proactive approach helped them stay on top of important dates and maintain smooth business operations without the worry of costly oversights.

Results & Business Impact

Implementing the contract reminder software not only solved the firm’s tracking challenges but also led to measurable business improvements.

Reduced Penalties by 60%
By staying on top of deadlines, the firm was able to drastically reduce the number of penalties they had to pay for missed renewals. Contract reminder software approach not only saved them significant amounts in fines but also helped them avoid unnecessary costs, ultimately saving thousands of dollars annually. The financial impact was substantial, allowing the firm to allocate those resources to other important areas of their business.
Increased Client Satisfaction by 70%
Clients noticed that their firm’s improved efficiency in handling contracts, which led to stronger relationships and increased trust. As the firm consistently met deadlines and maintained a high level of organization. This improvement in system not only boosted the firm’s reputation but also helped to create lasting partnerships with their clients.
Reduced Risk of Missed Deadlines by 85%
By using the contract reminder software, the finance firm drastically reduced the risk of missing important contract deadlines. The software allowed them to stay on top of renewals and key milestones, ensuring timely action was taken without the stress of manual tracking. This not only minimized the chance of penalties but also helped maintain strong vendor relationships and compliance, ultimately contributing to smoother operations and greater peace of mind for the team.