Impact of Expired Contract Status

Summary:

Understood that we need to run Update Contract Status to change the contract status to 'Expired'

But What is the major impact if contract status not changed to expired and remain Active?

Fyi, we are using contract module related to project contract function

Content (required):

Customer asked what happen if contract status not changed to expired and remain Active

Version (include the version you are using, if applicable):

Code Snippet (add any code snippets that support your topic, if applicable):