What Is a Voucher Check?
A check that is tied to a stub that details the check’s purpose, its contents, or both is known as a voucher check.
For both the people or organizations that issue the checks and those who receive them, these types of checks are frequently utilized to improve or simplify record-keeping procedures.
The voucher check stub is taken out and filed before being deposited. These checks may be presented in a variety of formats, just as there are numerous accounting systems.
They may arrive as a whole sheet of paper with the check at the top and the voucher on a section that may be removed from the bottom.
Understanding Voucher Checks
The voucher check makes a paper trail of the issuer’s payment possible. Before cashing the check, the recipient of the voucher detaches one portion of the voucher and keeps it for their records. The remaining half of the voucher is kept by the issuer.
The three components of the voucher check used in computerized accounting systems can all be printed on standard-sized sheets of paper. The checks are typically business size, meaning that they are both wider and longer than a regular check.
The check is one portion, while the other two pieces are the vouchers for the payee and issuer’s records, respectively. The various sections are simple to separate thanks to the perforations.
The accounts payable division of a business uses vouchers to compile and store all supporting documentation required to authorize and monitor the payment of liabilities. A voucher effectively serves as the backup record for payroll, invoicing, or accounts payable.
(Short-term invoices owing by businesses to suppliers and vendors are classified as accounts payable.) The voucher is crucial because it is a system of internal accounting controls that guarantees that every payment is legitimately authorized and that the goods or services ordered are truly received.
Who Uses Voucher Checks?
Payroll checks, also known as voucher checks, are frequently utilized by the payroll department of a business.
The voucher will have a voucher number, the name of the payee, the date, the amount (gross and net if there are any deductions), the signers’ signatures, and any memo notes that need to be noted.
Having a paper trail backup for payroll is a widespread practice, despite the fact that direct deposit is increasingly the norm for paying employees.
Voucher checks are also used by vendors. When an invoice and a purchase order are compared in this situation, along with proof that the order was filled, a voucher check is given.
Additionally, maintaining a file of voucher records of vendor payments helps the accounts payable department with addressing payment disputes and setting up the books for internal month-end closings.
Benefits of a Voucher Check
The upkeep of a check voucher system may be seen by many as boring and time-consuming, yet it has several advantages.
1. Completeness of documents
All necessary paperwork, including invoices, receipts, and orders, must be attached in order to establish a system of check vouchers for processing payments. Therefore, in the case of a check voucher system, all documents are automatically retained.
2. Organized filing
The numbering of check vouchers ensures that there are no inconsistencies, that all checks are in the right place, and that records are kept in the correct chronological order.
Check vouchers are useful for bookkeeping because they are easily accessible, undamaged, and legitimate. Additionally, if check vouchers are automated, an automatic entry is also recorded.
4. Easier internal review and audit
Check vouchers guarantee that documents are correctly organized because of their nature. Errors are decreased, which eliminates the need for pricey review and audit. As a result, review and audit are no longer required when using a check voucher system.
5. Easy tracking of outstanding and paid checks
Only cleared (paid) checks are typically filed, not outstanding (unpaid) check vouchers.
How to Use a Voucher Check?
Check vouchers are simple to create and utilize. The following list includes some of the essential steps:
1. Collecting and analyzing all documents and information
It is first necessary to gather all pertinent paperwork, including bills, account statements, contracts, purchase orders, etc. The vendor’s name, the document’s date, the payment due date, the transaction’s specifics, the transaction’s value, comparable taxes, etc., should all be included in the document.
2. Preparing the check and voucher check
The check can be written once all the paperwork have been examined and scrutinized. The written check is then combined with the supporting documentation to create the voucher check.
The date of the voucher, voucher number, check information, bank name, check amount, relevant taxes, due date, document reference number, etc. are all significant elements stated on the voucher check.
3. Attaching the check and the documents in the voucher check
The process include printing the prepared voucher check and placing it in the same stack as the paperwork and written check.
4. Signing the voucher check
There are usually two cases:
- If the authorized signatory is preparing the voucher check: Both the voucher and the check must be properly signed.
- If the authorized signatory is not preparing the voucher check: The check, voucher, and supporting paperwork must be delivered to the designated signatory for inspection and approval. It must be signed after being authorized.
5. Releasing the check voucher
The vendor or payee must acknowledge receiving the check and sign the voucher check once all the aforementioned processes have been taken.
6. Filing the voucher
If the payment was successful, the final step is to make sure the voucher is lodged along with the supporting paperwork.
A voucher check is a hybrid of a check and a voucher, often known as a “remittance advice,” that provides crucial details about the parties to the transaction and generates an auditable paper trail concerning that check’s payment.
Voucher checks are a format that many businesses utilize when processing payroll. When an employee receives a voucher check under this type of system, she will also be given information about any other withholdings that may have been made in addition to the services provided or the number of hours worked.
With the help of this system, employees are able to check not only their pre-tax earnings data, but also the breakdown of their tax deductions and how much of their income is spent on taxes.