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:
- 1 Gather Procurement Records
- 2 Check the Accounting Information
- 3 Include Subcontractor Information
- 4 Generate Reports
- 5 Centralize Your Audit Information
- 6 Put Better Contract Management Software at the Top of 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.
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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.
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
Contracts help make the business world thrive. They are legally binding documents that allow business partners to exchange services and payment in a way that benefits both. While this may sound simple, the process of developing, monitoring, and auditing these types of contracts is very important.
ContraxAware is built upon the experience of a software developer and businessman and is led by not just him but also someone with vast legal experience. This combination makes for a strong foundation for ContraxAware.
Don’t just take our word for it. If you are in a business that deals with contracts of all sizes, forms, and partners, let us help. Our friendly and professional staff can provide you with a free demonstration of how ContraxAware works. In addition to our subscription plans, we offer training support. Walk-through support allows your team to use an online, step-by-step process to learn the program. Some subscriptions come with eight hours of online, one-on-one training.
Streamline your reports, accounting information, and other contract documents by reaching out to us today. From easy to use templates to a data management system, ContraxAware will change the way you do contract business. Begin your collaborative approach to contract management by calling us at (800) 460-9052. Alternatively, you can contact us online.
Once you use ContraxAware, you’ll wonder how you ever lived without it. Start streamline and stop stressing over contract audits. Create a checklist and start improving your audit process by using ContraxAware for all your contract management needs.