Preparation of Vouchers

Vouchers are those which provide documentation in written format to support the transactions reported in the account books. They are suitable evidence used to indicate any transaction and its accuracy and authenticity of accounting. Examples of vouchers are bills, invoices, receipts, cash memos, salary sheets, cheque-book counterfoils, and trust deeds.

Generally, vouchers are prepared by accountants for recording transactions with the help of the source document. It is worthy in monetary terms, and this includes providing vouchers for facilities such as lodging, transportation, and food.

Accounting Voucher

Whenever you buy any product or acquire any facility or service, a voucher is created by the supplier in the form of an invoice. Once the appropriate amount is settled, the supplier stamps the invoice as paid and archives it along with other necessary documents for record-keeping.

An accounting voucher is prepared from documentary evidence, journal entry, or ledger accounts.

Components of a Voucher

In  manual payment schemes, the prepared vouchers need to contain or specify the following information:

• The identification number of the supplier

• Type of voucher

• Debit column

• Credit column

• The amount payable in figures and words

• The date of payment

• The accounts payable for recording the liability

• Any valid early payment discounts

• Signature or stamp of approval

• Terms and conditions

Types of Vouchers

• Debit/Payment voucher

• Credit/Receipt voucher

• Supporting voucher

• Non-Cash/Journal voucher

• Contra voucher

• Purchase voucher

• Sales voucher

• Sales Return voucher

• Purchase Return voucher

Preparation of Vouchers

Before initiating the preparation of vouchers, let us focus on what the accountant has to do. As the base of the whole accounting system, vouchers need to be carefully prepared.

Roles and Responsibilities of the Accountant

An accountant involved in the preparation of vouchers has to follow the specified procedures given below.

• They have to verify all the necessary supporting documents thoroughly concerning the date, amount, and nature of the transaction

• All the supporting documents need to be successfully approved by the appropriate authorities

• They need to select the specific type of voucher that needs to be prepared for the required transaction

• They should have a thorough knowledge of the accounting rules and regulations

• They must make sure that the totals of both the debit side as well as the credit side are equal

• They should have good and appropriate command over various accounting heads involved in debits and credits

The supporting documents required for the preparation of vouchers are:

• The invoice received by the supplier from the firm

• The supplier details such as their names, addresses, and contact details

• The payment details such as the amounts, discounts, and the due dates for payment

• Other particular details of the company that has made the initial purchase order with the supplier

• The receipt that provides the transaction details confirms that the company had received the goods and services

• The ledger account details concerning the particular transaction

• The signature from the company’s authority to validate the purchase of goods and services

• The payment proof that needs to be documented for the voucher

How to Prepare Payment Vouchers

1. Getting in Touch

The company initially contacts the supplier to place an order for the required raw materials or semi-finished goods. Once the supplier agrees with the specifications mentioned in the order, the firm places the order and confirms the amount.

2. Quality Control

The company runs a quality control check to ensure no defects or damages to the items, loads them in the consignment, and sends the consignment order to the firm. The quality control team has to ensure that the order matches the specifications.

3. Creation of Voucher

Once the firm is satisfied with the given order, a voucher is created involving the relevant details and supporting documents required for the transaction.

4. Verification

Both parties must thoroughly check the voucher and the supporting documents to ensure zero errors. The company closes the deal by paying the supplier for the consignment.

Conclusion

Vouchers are documented pieces of evidence of any transaction. They are essential and particularly important during the performance of audits. All public companies are requested to maintain voucher records during audit procedures for verifying the integrity of the information in the financial statements. The proper preparation and documentation of vouchers enable easy verification of all goods and services purchased, sold, and returned. Vouchers can also ensure to reduce the risk of misconduct by employees and prevent them from using the company assets for inappropriate uses.