Recording of Transactions

There are numerous accounting vouchers used by an organisation, including chequebook counterfoil, pay-in-slip counterfoil, wages and salary sheet, receipt, invoice, bills, and many others. To be more specific, a voucher is any written document that supports the accounting entries in the books of account and indicates the transaction’s accuracy. Accounting vouchers can be any written document prepared to support the entries in the accounting books and to ensure that the accounting transaction is accurate. Vouchers are typically used to keep track of an organization’s accounting and financial transactions.

Recording Transaction

Recording Transactions is a simple accounting technique with only a few steps. To begin, determine which accounts will be impacted by the transaction. The information is then entered into the appropriate accounts in the second phase. Care must be taken while typing numbers into the debit and credit fields. After that, the transaction is documented in a journal. A journal is the first place where a transaction is documented in accounting records.

Voucher in Accounting

In accounting, a voucher is a document that the accounts payable department use to authorise payments. It can also be referred to as a liability memorandum for any organisation. An accounting voucher can be thought of as a written backup document for payments made to suppliers or creditors in any organisation for work done with the party. This document is crucial at the beginning of the liability clearance process. A voucher can be used to collect and verify all of the other necessary documentation. The accounting vouchers in Tally also contribute to the establishment of a suitable control mechanism.

The accounts payable department must ensure that all payments made to suppliers are accurate.

• Appropriately authorised
• The goods and services are delivered in exchange for money.
• The payment is made in accordance with the pre-existing arrangement.

When a payment voucher is issued, it means that all of the control mechanism’s requirements have been met, and the payment to the provider is complete.

Types of Vouchers

Along with understanding the concept of vouchers in accounting, the accountant should be well-versed in the many sorts of vouchers. This aids the accountant in preparing a voucher that is appropriate for and related to the financial transaction. Furthermore, different sorts of vouchers have varied ramifications and meanings.

The various kinds of vouchers are listed below:

Receipt Voucher

Receipt vouchers are used to record the bank or cash receipt. There are two sorts of receipt vouchers: namely bank receipt vouchers and cash receipt vouchers. For the amount received in cash, a cash receipt voucher is generated. The demand draught or check is recorded on the bank receipt vouchers. This means that the money is received in a bank account rather than in cash.

Payment Voucher

The payment voucher is placed in the opposite direction of the receipt voucher. Payment vouchers portray transactions with an outflow of monies, whereas receipt vouchers depict transactions with an inflow of funds. Payment vouchers are used to record cash and bank transactions for payment within an organisation. Payment vouchers, like receipt vouchers, are divided into two categories: bank payment vouchers and cash payment vouchers. A cash payment voucher is used to record cash payments in an organisation, while a bank payment voucher is used to record payments made via pay order or cheque.

Journal Voucher

Transfer vouchers or non-cash vouchers are other names for journal coupons. Journal vouchers are used for all transactions that do not require cash or bank transactions, as well as inflow and outflow of funds. They are genuine documentary evidence of the transaction. When products are sold on credit and no immediate cash or bank transaction is available, the journal voucher is generated for such a transaction. To complete the accounting entry, the debtor is debited with the sales amount, and the sales account is credited.

Sales Voucher

A sales voucher is used to pass through any sales transaction for products and services. The sales voucher is created to keep track of the company’s cash and credit sales. The sales account is credited, and the matching debtor account is debited. The sales voucher serves as documentation and evidence of the organization’s sales transaction for goods and services.

Benefits of Accounting Voucher

Maintaining vouchers is essential for any organization’s payment process to run smoothly and efficiently. In any legal process, it serves as proof, and it also serves as proof throughout the auditing process.

The following are some of the most significant advantages of establishing and maintaining vouchers:

• Accounting vouchers in Tally or any other software are an important aspect of maintaining tight control over the payables process.
• If a voucher is in good condition, many invoices might be paid at the same time. As a result, the number of checks used and issued is reduced.
• The process of creating an audit trail in payables is made easier when the vouchers are pre-numbered.
• The two critical stages of invoice payment and invoice approval are properly separated. This simplifies the payment plan and improves productivity.

Importance of Accounting Vouchers

Accounting vouchers play a critical part in all types of auditing and control procedures. Through audit methods, the accuracy of data and information in an organization’s financial accounts is confirmed and authenticated. With the vouchers in place, conducting the audit process and authenticating the transactions becomes simple and straightforward. The documentation of the transaction that is executed in the organisation requires and justify vouchers.

The vouchers also serve as a control and audit trail for the organization’s transactions. It lowers the chances of any form of misbehaviour in the workplace. The vouchers are a type of paper trail that connects to the transaction, the persons involved, and the responsibilities they are responsible for. As a result, the vouchers instil a sense of personal responsibility in the employees and everyone involved in the transaction.

Conclusion

Accounting vouchers are critical to any organization’s long-term sustainability. It keeps track of financial transactions and verifies that they are legal. Accounting vouchers also ensure that the organisation is well managed and organised and that it is ready for any type of audit. Various sorts of accounting vouchers can be employed to meet the needs at hand, depending on the situation. As a result, we hope you now have a better knowledge of such coupons and their importance in the workplace. In this aspect, the Biz Analyst software comes in handy. You can safely make receipts and payments for accounting, as well as stay connected to your business and increase sales.