Manual/paper Check Elimination Proposal
Essay title: Manual/paper Check Elimination Proposal
Manual/Paper Check Elimination Proposal
Analysis Completed by
Common Sense Industrial Banking
Small Business Division
September 16th, 2007
I. Conclusion
Small Biz would save on average $200.00 dollars a month by switching over to electronic payments handled by Common Sense Industrial Banking. We have concluded this after a thorough analysis of your banking patterns, calculating the cost of check stock, postage, printer toner, and labor; then determined the cost of labor and fees associated with our electronic payment service. This is effectively a 20% reduction in cost which can increase as your volume increases. Our conclusion is that using our service is a service that will be beneficial for both our companies.
II. Scope of Analysis
Our department used the last six months of banking usage data for Small Biz and developed an average number of paper checks written by your company to be 24,000 each month. The months covered were April through September. We chose these months because they historically have covered both high and low months and are representative of the rest of the year. We used the pay scale of an accounting clerk with two years experience. We chose to use data for the toner and check stock from the local office supply store in your neighborhood.
III. Data
Using a medium duty check printer with the capacity to print 15 checks per minute, it would take over 26 hours non-stop to print all 24000 checks, requiring