What method can be used to find out how much it costs to cut a check in Accounts Payable?

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If your question is focused specifically on the cost to cut a check, to calculate your check processing cost, consider the following elements.

  • material costs such as check stock and toner,
  • postage and envelope cost
  • the labor costs for printing
  • bank fees for disbursement accounts
  • positive pay cost and the transaction cost (i.e. fee for clearing a check)

Also see the article EFT Definitions and Comparative Cost.

If you want cost of the entire process, invoice through payment, as determined per check, then you can look at taking your operating costs divided by number of checks cut. You may also want to see Key AP Benchmarks.

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