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 fee's 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