#internalcontractaudits

Business contracts often involve much more than just one document. Creating a checklist for a contract audit is the best way to include all records associated with the contract. A contract is only as good as the terms included in the document, and your company’s contract records should capture every relevant detail. Creating the ultimate contract audit checklist before you start is the best way to streamline the audit process, and we cover the remaining steps in our guide to internal contract audit projects. Here are a few ideas for your contract audit checklist:

Gather Procurement Records

If you bid on a government contract and won the project, then gather your original bid documents. These documents can serve as a helpful reminder of your intent for bidding on the job and your plans for fulfilling the terms of the contract.  The original notice, your submission, and the notice of award all make for a great starting point for your contract audit checklist. 

Check the Accounting Information

Invoices and payments for services completed are another vital part of your checklist. Engage your accounting team and let them help you gather the right and necessary information. Don't overload the audit process with information that doesn't pertain or numbers that don't apply to the project at hand. Stay focused on the specific contract you are auditing and include only that information.  You may feel tempted too include more information than necessary, especially for government contracts. The attempt to appear helpful can backfire if you include information that clutters the process for everyone. So focus on the essential elements or create different checklists for different circumstances.

Include Subcontractor Information

If the contracted project is so large that you must use one or more subcontractors, include their records in your audit. The type of information you include under the subcontractor category on your checklist may vary, depending upon the scope of the project.  A subcontractor agreement section on your contract audit checklist can include more than one box to check. For example, it may include financial records, your own contract with the subcontractor, and additional information you may want to include in the audit. 

Generate Reports

Status reports of the project's progress are important checklist items. These reports can include a timeline of deliverables, what percentage of the project is reaching completion, and whether there is a possibility of extending or renewing the contract. 

Centralize Your Audit Information

At ContraxAware, we understand how overwhelming the contract audit process can appear. While a checklist makes it easier to get started, just the thought of gathering the information you need can create stress and frustration. That’s why our software has the features you need to make the process as simple and automated as possible. Centralizing your contract and audit information is easier with content management software. By centralizing this information, all team members can have the access they need, when they need it.  Contract management requires strong attention to detail and lots of juggling of information. One team member may not realize the importance of a document until after the audit. Whether they found a particular form in a file cabinet or under a pile of desk papers, it is often long after it was originally needed. A contract management software like ContraxAware can serve as the one-stop, collaborative tool your team requires. A contract audit is as complex as the business partner and project it represents. This is why allowing your team members to update and save important parts of the audit can result in a more successful outcome for your company. Your audit checklist document is just as important as the contract documents themselves.

Put Better Contract Management Software at the Top of Your Contract Audit Checklist

If you're a team lead, you may feel confused about where to get started with how to manage an audit project for contract compliance. Organizing your team and getting started is easier using contract software management like ContraxAware, and we created a comprehensive guide to internal contract audit projects to get you started. By following the audit trail, you can streamline the process for all team members in a collaborative way. 

Starting the Audit Trail Process

Deciding where to start involves choosing the contract that requires an audit and assembling team members to start the audit trail. The right team members can make the process easier by focusing on their area of expertise. Take a good look at your team and decide who to include. Chances are it includes members of the contract team, accounting team, and possibly the legal team. At any point during the project, team members may come and go, depending upon your need of their talents. 

Define Your Objective

What are the goals of the audit project? If it is ensuring compliance, what must you include as part of the review process? Defining your objectives and setting goals for reaching them can lead to the next step of establishing a helpful checklist. The right way to manage an audit project is to make sure there’s a clear goal your team can achieve.

Set Realistic Goals

A checklist can help you to identify the right information you need for a successful audit. With helpful contract management software from ContraxAware, it is easier than ever to find the information you need in the database. Once you find it, you can sort it, filter it, and even share it.  When your team members can all access the information in a more timely manner, it can help you reach your goals faster.  While each team member accessing different parts of a contract file may alarm you, the ability to track changes by person and date helps. The technology is sophisticated, and the ease of using it is rewarding.  If you have to adjust your goals for any reason, ContraxAware provides the flexibility to do so. Managing ContraxAware to work for you is simple and something our online training can teach you. Whatever your objectives and goals for your contract audit, ContraxAware can help you reach them. 

Implement ContraxAware

ContraxAware has all the tools you need to complete and manage an audit project. The ability to view the project from a 360-degree angle and then drill down to specific parts of the contract audit is a feature your team will find useful.  Reviewing documents to see which team member updated what and when they did it is another useful feature. There's no longer a need to call meetings or to hold conference calls. ContraxAware eliminates the need for this and takes your business workflow to the next level.  Time is a precious commodity for any business. By implementing ContraxAware for your contract audit process, you can save time by utilizing the key features of the software. If your project requires restricted access for some team members but not others, the security features make that possible. Need your legal team to review certain parts of the contract? Done.  With ContraxAware, your team goes from juggling multiple balls to just one. This not only frees up their time for other tasks, but it can also help alleviate their stress. Providing the tools your staff needs demonstrates your confidence in not only the project but in their talents. It can also convey support, knowing most employees have busy lives outside of work.  Balancing their workload is essential to maintaining morale. ContraxAware makes collaboration so easy, you may find staff teaming to work on additional contract projects without you having to ask. 

Learn More About How ContraxAware Can Help Your Team

If you're a team lead, you may feel confused about where to get started with how to manage an audit project for contract compliance. Organizing your team and getting started is easier using contract software management like ContraxAware, and we created a comprehensive guide to internal contract audit projects to get you started. By following the audit trail, you can streamline the process for all team members in a collaborative way. 

Starting the Audit Trail Process

Deciding where to start involves choosing the contract that requires an audit and assembling team members to start the audit trail. The right team members can make the process easier by focusing on their area of expertise. Take a good look at your team and decide who to include. Chances are it includes members of the contract team, accounting team, and possibly the legal team. At any point during the project, team members may come and go, depending upon your need of their talents. 

Define Your Objective

What are the goals of the audit project? If it is ensuring compliance, what must you include as part of the review process? Defining your objectives and setting goals for reaching them can lead to the next step of establishing a helpful checklist. The right way to manage an audit project is to make sure there’s a clear goal your team can achieve.

Set Realistic Goals

A checklist can help you to identify the right information you need for a successful audit. With helpful contract management software from ContraxAware, it is easier than ever to find the information you need in the database. Once you find it, you can sort it, filter it, and even share it.  When your team members can all access the information in a more timely manner, it can help you reach your goals faster.  While each team member accessing different parts of a contract file may alarm you, the ability to track changes by person and date helps. The technology is sophisticated, and the ease of using it is rewarding.  If you have to adjust your goals for any reason, ContraxAware provides the flexibility to do so. Managing ContraxAware to work for you is simple and something our online training can teach you. Whatever your objectives and goals for your contract audit, ContraxAware can help you reach them. 

Implement ContraxAware

ContraxAware has all the tools you need to complete and manage an audit project. The ability to view the project from a 360-degree angle and then drill down to specific parts of the contract audit is a feature your team will find useful.  Reviewing documents to see which team member updated what and when they did it is another useful feature. There's no longer a need to call meetings or to hold conference calls. ContraxAware eliminates the need for this and takes your business workflow to the next level.  Time is a precious commodity for any business. By implementing ContraxAware for your contract audit process, you can save time by utilizing the key features of the software. If your project requires restricted access for some team members but not others, the security features make that possible. Need your legal team to review certain parts of the contract? Done.  With ContraxAware, your team goes from juggling multiple balls to just one. This not only frees up their time for other tasks, but it can also help alleviate their stress. Providing the tools your staff needs demonstrates your confidence in not only the project but in their talents. It can also convey support, knowing most employees have busy lives outside of work.  Balancing their workload is essential to maintaining morale. ContraxAware makes collaboration so easy, you may find staff teaming to work on additional contract projects without you having to ask. 

Learn More About How ContraxAware Can Help Your Team

Contract records can range from simple to complex, depending upon your type of business. The smallest mistake can result in big trouble, especially when it comes to large government contracts. Protecting your company's reputation and your relationship with a federal agency is imperative for your success. While human error happens, the right contract software management can help identify and solve even the most basic errors. We also recommend our read our comprehensive guide to creating internal audit projects so you can correct contract record errors faster. There are three common contract record errors that are often easy for your team to identify and solve:

1. Contract Record Errors Involving Invoicing

As busy people, we all make mistakes occasionally, and that's true for even your most trusted team member. Contract invoices can include such errors as: Wrong invoice numbersIncorrect dateIncorrect or incomplete codingBilling costs in excess of the funded amount of the contract Relying on the human eye to catch these errors is risky. The fine print and details of contracts can blend together after a full day of staring at a computer screen. Contract management software can alert you to needed changes or required signatures. This type of cloud-based software is the extra set of eyes that keep your contracts accurate and up-to-date. It also serves as a valuable source for financial checks and balances, ensuring key elements of the audit are completed. 

2. Inadequate Team Training

A contract audit requires a full team approach. When one team member fails at their assigned task, it can affect the entire project. Identifying why that team member dropped the ball can help you to determine how to improve their performance. For example, the team member may not understand where to find their part of the project on a software system that is outdated and complicated to use. By providing your team with the right tools, they can better collaborate on important contracts and subsequent audits.  By not providing the tools your team needs to perform the best job possible, they may interpret that the job simply isn't that important. The term discretionary effort means doing what you have to in order to get by versus doing your best. Life both inside the office and away from it is often hard enough. Make it easier and instill confidence in your team—and the project—by providing tools like ContraxAware.

3. Contracts That Are Here, There, and Everywhere

The individual roles of team members may have important contracts and related documents scattered throughout the office. A centralized system can better streamline the contracts into one source, making it easier for all team members to access. ContraxAware does this and more when it comes to contract management.  Not only is ContraxAware easy to use, but we also provide walk-through training that takes uses through the process step-by-step. The learn at your own pace option makes training easy and keeps it in-house. Eight hours of one-on-one training is also available for some higher-level subscription plans. Without a centralized location for your contract files, there is more opportunity for errors. ContraxAware has a built-in feature that allows you to see who updated what and when they did it. This form of management can save your company time and money in addition to protecting your client relationships. The time saved by streamlining your contract management process is better spent building your business. 

About ContraxAware

Contracts are an important pipeline for any successful business. The exchange of services detailed in the contracts requires precise language that is applicable to the expectations of both parties. Managing multiple contracts is a juggling act where even the most experienced professional can drop the ball. Internal contract audits create a system of check-n-balances that prevent — and guard — your company from making serious and costly mistakes. 

Ultimate Contract Audit Checklist for Complete Records

A contract is only as good as the terms included in the document in addition to any accompanying records. Creating the ultimate internal contract audit checklist before you start is the best way to streamline the audit process.  While contract audits are necessary, they don't have to consume your time. Assemble an audit team that is not only qualified but efficient for the task at hand. Next, set goals for the audit, such as a timeline for completion. Next, let them help build the audit checklist — each team member may think of something you forgot to include. Finally, don't micromanage your team. Trust them to complete in the audit using the skills that attracted them to your business.  The size and details of the internal contract audit checklist may vary from checklists used in the past. A federal contract, for example, may require a more extensive checklist than a contract with a private business. No matter what type of contract your team begins to audit, establishing objectives and sticking with the checklist is the best way to start your project. 

How to Manage a Complete Internal Contract Audit Project with Your Team

Managing a complete contract compliance audit project demands a strong team with clear objectives. Identifying the goals of the internal contract audit project and the best way of approaching them are two key places to start with your team.  Chances are your team has other tasks to attend to throughout the internal contract audit process. The right contract management software can unite the team even when they aren't in the same room. Access to the necessary files and alerts specific for the audit can easily target only those team members working on the project. Software like Contraxware not only makes this possible, but it makes it an appreciated time-saver for everyone.  Providing your team with the tools they need can prevent frustration and extra stress. Contract software management that helps with the internal contract audit process can help team members better understand their role in the project. While the overall project is to ensure compliance, specific team members may need access to restricted files. A one-stop software system like ContraxAware can provide levels of security for some and prevent access for others, ensuring that your company's data remains secure. 

Common Errors with Contract Records You Can Easily Identify and Save

Both sides representing a contract can make a mistake. Whether it is mathematical or relates to the contract terms, identifying and correcting the issue is easier with contract management software.  No business, large or small, can afford even the simplest mistake. Contraxware allows you to identify, fix, and save changes within one software system that is accessible to all team members.  Reduce Process Confusion Not streamlining your internal contract audit project can result in contract chaos. Contract audits aren't necessarily fun. But they are important, and the process doesn't have to generate stress. Centralized information accessible to the project team members can result in a smoother process for all.  Check for Human Errors Human error is a very real thing, even in the day of sophisticated technology. A comprehensive contract software management system provides a way to implement checks and balances for your team. When one signs off on a task, another team member can know — without emailing or phoning them to ask.  Catching errors with contract records is easier when you have a cloud-based software system supporting you. Once you identify the mistakes and save them, you are better able to watch for the same issues in other contracts.  Whether the mistake is mathematical, involves a wrong government code, or an incorrect invoice number, catching it during the audit can save you a world of trouble later. As important as your business is to you, the same is most likely true for the client with whom you have the contract. Identifying and saving contract errors can save a business relationship. Missing them can cost you a contract, especially with a government contractor.  Your internal contract audit team can breathe easier knowing that the contract management software they use provides a layer of protection to the process. Audits aren't necessarily fun, but contract management software like that of ContraxAware can make it easier to identify mistakes and protect the company’s important contracts. 

How to Internally Search for a Contract

Searching for a particular contract is time-consuming without contract management software. By utilizing a system like Contraxware, you can search the database using the interactive dashboard. There's no emailing, phoning, or tracking down a certain employee to find a contract. Knowing a contract is at your fingertips with a quick software search can provide you peace-of-mind and prevent panic.  ContraxAware includes data management features such as searching, filtering, grouping, sorting, and sharing of data. These features are invaluable tools for finding the contract you need. The cloud-based software serves as a safe haven for your most valuable documents, keeping them secure and easy to find. 

Breaking Down Your Contract Process for Internal Auditors

Internal auditors may not understand the original contract process. For whatever reason, their role wasn't necessary until the audit project. Bringing them up to speed is easier by granting them access to the right files. All team members may not require access to all files. Establishing permission for who can review which files and what files are to remain restricted is made simpler with Contraxaware. Contract process 101 may seem silly to the staff who work with contracts every day. This method may just help those who join the audit process later to better understand what they are looking for and why it is important. Never overestimate someone's knowledge or skills regarding contracts. Providing review and easy software access to the right files can help everyone better understand the project.  A special process pertaining to government contracts may help improve the process for larger, federal projects. The scope of the contract and the partners involved plays an important role in how to approach the contract process. So tackling the contract process in stages, using the right software, can make for better collaboration and a more successful workflow process. 

Auditing Government Contracts

Depending upon your business, government contracts can serve as lucrative and steady accounts. If your business has government contracts, you are not alone. More than 4 million clients serve the U.S. Government, collecting more than 5 billion annually. Any type of audit involving a government contract requires extra attention to the details. Federal contracts are subject to the Federal Acquisition Regulation Act (FAR) and the Federal Acquisition Streamlining Act (FASA). Government contracts can also include state and local level projects.  Auditing a government contract advances in complexity depending upon the level of government. A contract with a local municipality, for example, will not require quite as a complex of an audit as one with a large federal agency.  Federal rules and regulations are known to change frequently and can leave your team confused or worse, complacent. Issues that may arise over the course of a contract are ones of government coding, invoice sequencing, and mathematical errors. Any incomplete, incorrect, or inadequate information can impact not only receiving payment but any future government contracts.  Ensuring that your government contracts are up-to-date, on-track, and error-free is essential to continuing business with them. 

About ContraxAware

At ContraxAware, we understand the challenges businesses face with contract audits. Our leaders bring software development and legal experience to the table. Our entire team recognizes the value a contract software management system can deliver for better business management.  Internal contract audits aren't easy, but they are important to  Catching mistakesAlerting you to potential problemsEnsuring ongoing business partnerships The better the contract management, the better the relations — and trust — with your business partner. A contract audit is your company's best opportunity for reviewing policies, along with evaluating and verifying contract terms. It also is an opportunity to inspect accounting transactions. The entire process has lots of moving parts and team members who are skilled in specific areas of the audit. Easy to Use Tools Centralizing the audit process is possible. ContraxAware provides the necessary tools you need to prevent confusion, avoid mistakes, and to alert you to tasks. It decreases and often eliminates the need for face-face meetings.  Your team has enough on its plate. Gathering them for meetings or filling their inbox with countless emails can lead to them tuning out, rather than in, to this important project. No one has time to stop their busy day to search in a file cabinet for a particular folder. ContraxAware has an easy-to-use dashboard that no matter when a team member comes on board, they are able to learn the software quickly. Built-in alerts keep the project, and team members, on task. The software provides a 360-degree view of the user's assigned task and workload. The user can use built-in tools to drill down to the details of a specific contract. This process helps team members to focus better on their individual tasks.  Built-in walkthroughs provide the training your team needs to get up-to-speed. Step-by-step instructions and on-screen prompts help walk users through the learning process. Also, eight hours of one-on-one internet training comes with the professional and above subscription plans. 

Let ContraxAware Make Your Internal Contract Audits Easier