Abstract: A cash counting machine including a bill feed mechanism that transfers bills individually from an input hopper to an output tray including a microprocessor control system. The machine operates in two modes, including a batch mode in which it transfers a selected number of bills, as selected by an operator, to the output tray, and a count mode in which it transfers all of the bills to the output tray and keeps a running count of the number of bills, as well as the total value of money if the operator has entered a denomination value. The microprocessor also determines whether the bills are of the proper size. In an alternate embodiment, for use with currencies in which the different denominations have different sizes, the microprocessor determines the size of the bills and their respective denominations.