Request For Permission To Pursue Research

|Paychex, Inc | |Memo

To: Frank Fiorille, Director

CC: Michael Silsbee, Risk Management Supervisor: Doug Baxter, Credit and Banking Risk Manager

From: Danielle Cole

Date: 3/16/2010

Re: Request for research proposal

Request for Approval

I’d like your approval for me to continue with my research on the benefits of switching to a lockbox for our invoice payments. In this memo, you will find some of the highlighted benefits that I feel will help you make your decision for me to continue with this research.

A lockbox is a P.O. Box that is set up with our bank that our customers will be able to send their payments too. The bank has a machine that will open, sort and process the checks. Once the day’s checks are processed, the bank will create a file and send it to us. The Information Technology will load the file into our Oracle system and once the nightly processes run, the file will post automatically into our billing system.

In my initial research of the benefits of switching to a lockbox, I have found many advantages. Switching to a lockbox could mean a reduction in costs, less errors, it would be more time efficient, and we would have an easier look up process.

Switching to a lockbox could save us money by possibly reducing our head count. We have the potential to reduce our head count by two people. We could also save money because we could cut out fuel reimbursement casts. If we had a lockbox, the people at the bank process the checks, so our employees will no longer have to drive to the bank to deposit checks. This could also save us money by reducing our copying costs. We would not need to copy all the checks that were received because the check images would be housed on the bank’s lockbox website once they are processed. This will also help us in reducing the cost of off-site storage.