A voucher is a document used in accounting to record a payable liability. It provides details about a company's payable amount and serves as a backup for payable bills. It can also be a redeemable coupon for goods or services.
The voucher contains important details such as the invoice, the payee, supplier ID, purchase and payment terms, and transaction details. It supports an auditor's findings. Vouchers can be bills, salary sheets, wage sheets, or receipts to verify a company's payment. Receipt of a voucher implies flawless transactions.
Vouchers are key transaction evidence, confirmed and verified through voucher entries in accounting books. They must include a transaction description. They're common in hospitality, used in hotels, restaurants, and resorts. Vouchers can be payment, receipt, sales, purchase, supporting, or transfer vouchers.
Voucher System Pros and Cons
Vouchers enhance control over accounts payable and payments. Numbering helps track transactions for more systematic auditing. They ensure transaction accuracy and authenticity and allow multiple simultaneous transactions.
However, vouchers can increase administrative costs and complicate accounting and paperwork.