Dealing with contracts is among the most common business practices for both large and small companies, especially at the End of the Fiscal Year. Companies’ contractual relationships are usually with services and goods providers that have a specific duration.
Once this agreement term comes to an end, they need to be renewed. Businesses need to ensure that they renew their contract so as to ensure all their obligations with their customers, suppliers, service providers and other entities are legally protected.
Contract renewals, cancellations and rebids happen every year. The process of contract review begins mid-February, to ensure all contracts that coincide with the Fiscal Year are renewed, rebid or canceled, so that a lapse in coverage does not occur, or that we don’t pay for goods or services no longer required. Contracts that don’t renew or expire according to the fiscal year are reviewed approximately two months previous to the end of their 12-month term.
In these cases, before the end of the fiscal year (EOFY), most companies have a manual process to renew every Purchase Order (PO) they’ve issued, entering one by one manually. You have to consider that in some cases the volume of POs could be huge.
To maintain the profitability of all the department’s renewals, must be within the right time range. Without automation, enterprises take months of manually working and need to invest in extra-resources to complete the tasks before the EOFY.
In case of delays, usually, the companies set up a special force to cope with this EOFY rush.
Asignet’s workflow automation to the rescue
Asignet’s Robot Process Automation has replaced entirely the manual entry of POs, making a life-changing experience for enterprises, allowing them to finish the process in less time than expected before EOFY.
This process automation also helps companies to identify and group more quickly common errors encountered during data entry (such as missing information about suppliers, accounts cost centers, etc). This means that enterprises won’t have to do anything more than data validation.
If you have a growing company and have many customers holding on these contracts, your best bet is to automate your business process as much as possible.
Having these EOFY contract renewals done on time helps your company to run your business smoothly and avoids any type of customer’s claims or problems.
Contacts us to learn how we can help you to reduce your EOFY saturations.