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We'll cover everything from setting up the template to tracking contract changes and expiration dates. Whether you're just getting started or are looking for ways to improve your current contract database, this guide will hopefully help you!
What is a Contract Database?
A Contract database is essentially a repository of all contracts, agreements, and other legal documents that are stored in a central location. Contract databases are primarily used to record the terms, expiration dates, and other important details of a company's contracts and to store copies of the actual documents.
The complexity of a particular contract database can vary depending on the size and type of company and the specific requirements and goals of the database: A small company with a relatively simple contract portfolio may need a relatively simple contract database, while a larger company with a more complex contract portfolio requires a more sophisticated database with additional functions and capabilities.
Why Do Companies Need a Contract Database?
Today, it is simply too impractical for companies not to have a dedicated database to store and manage their contracts and legal documents. This is primarily because contract databases help keep track of all reminders, deadlines, and milestones associated with every agreement. In addition, a contract database ensures that companies comply with the terms of all agreements.
A properly structured and adapted contract database also allows companies to easily access and review their contracts when needed, which can be particularly helpful in the event of a legal dispute or when making changes to an existing contract.
Contract databases also make it much easier to manage relationships with providers and partners, as they can store all additional relevant details and contact information about all parties to the contract. With the ability to set up automatic reminders for contract renewals and expiration dates, as well as the ability to track the progress of negotiations and contract execution, every company can ensure that they always make informed decisions about their relationships.
How To Create a Contract Database Template Using Excel
There are various ways to create a contract database. In general, you can either use specialized contract software that maintains its own database for you, or you can also sign up for a typical database or spreadsheet program decide. Microsoft Excel and Google Sheets are among the most common spreadsheet programs. Below, we'll explain the steps to create a basic contract database template in Microsoft Excel.
1. Assess your needs and determine the purpose of your database. This primarily means evaluating the company's current contract management processes and identifying any areas that could be improved or streamlined. This includes factors such as the size and complexity of the company's contract portfolio, the types of contracts that the company typically concludes, the divisions or divisions involved in contract management, and the overall goals of the company in terms of contract management.
2. Create the Excel worksheet. Set up the actual worksheet in Microsoft Excel, where you'll store and organize all contract-related information. As mentioned above, you can use any other spreadsheet program besides Excel.
3. Determine which fields or columns to include in the template. This includes, for example, the contract type, the parties involved, the date the contract was signed, the expiration date, and other relevant information. It's important to note here that the specific columns that are included in the sheet depend on your specific needs, but also on the types of contracts that your company typically concludes.
For example, a simple contract database template might only contain a few basic columns, such as the contract name, start and end dates, and the primary contact person. A more complex contract database template, on the other hand, can include additional columns, such as the contract value, the contract terms, the relevant business areas or departments, and notes or comments about the contract.
4. Create the template by setting up the columns and entering the appropriate field names. Here are a few points that you should definitely consider:
- Be sure to format the columns and cells so that the information is easy to read and understand. In general, you can achieve this by following a few basic design guidelines, such as
a.) to use clear and uniform headings for the columns,
b) color coding to highlight or group specific information,
c) setting up filters to sort your contract information according to specific standards,
d) the correct orientation of text and numbers and
e) consistent data and time formats across your entire contract database.
- Test the template by entering sample contract data and verifying that it is saved and displayed correctly. It would be advisable to actively address potential errors and problems in order to identify and solve them before they are actually used in your company.
- Once you're happy with the template, save it and use it to store and manage your contracts. You might want to create multiple templates for different types of contracts or for different departments or teams in your organization.
