What Is a Voucher and How Do They Work in Accounting?

A voucher serves as a fundamental document across various financial and commercial activities. Essentially, it is a record or certificate that provides proof, authorization, or a claim related to a transaction. Vouchers are integral to ensuring that financial dealings are properly documented and controlled, whether for internal business processes or for external consumer interactions.

Understanding the Basic Concept of a Voucher

A voucher is a document that validates a financial event or entitlement, acting as a formal record that a transaction has occurred or is authorized. A typical voucher includes specific details to ensure clarity and accountability. This information generally covers the date of the transaction, the amount involved, the purpose of the payment or receipt, the parties participating, and any necessary authorization signatures. Vouchers often carry a unique identification number for tracking. This documentation serves as concrete evidence, supporting financial entries and providing a clear audit trail.

Vouchers in Business and Accounting

Within business operations and accounting, vouchers are important for maintaining financial integrity and control. Businesses utilize vouchers to track expenditures, manage liabilities, and authorize payments, strengthening internal controls. For example, a payment voucher is an internal document created by the accounts payable department to authorize payment to a supplier. This voucher often consolidates supporting documents like the supplier’s invoice, purchase order, and proof of goods received, ensuring all conditions for payment are met before funds are disbursed.

Different types of accounting vouchers serve distinct purposes in financial record-keeping. Receipt vouchers document incoming funds, such as cash or bank receipts from customers. Payment vouchers record outgoing funds, like payments to vendors or for operational expenses. Journal vouchers are used for non-cash transactions or adjustments, such as recording depreciation or transferring funds between accounts within a business. Other types include purchase vouchers for goods bought on credit and sales vouchers for sales transactions.

The process of creating and approving these vouchers helps prevent unauthorized payments and potential fraud by requiring verification and multiple approvals. Once approved and paid, a voucher is typically marked as “paid” and archived with its supporting documents, providing a clear record. The aggregated totals of outstanding payment vouchers can also inform a company’s accounts payable on its balance sheet.

Vouchers in Everyday Use and Social Programs

Beyond internal business accounting, vouchers are widely encountered in consumer settings and social programs. For individuals, common examples include gift cards and discount coupons, which function as pre-paid values or entitlements for specific goods or services. Travel vouchers, such as airline credits or hotel vouchers, offer similar redeemable value for future services, often provided as compensation or part of a loyalty program. These consumer-facing vouchers incentivize purchases and can encourage repeat business.

Government agencies also issue vouchers as a targeted form of aid within social welfare programs. Housing vouchers, particularly the Housing Choice Voucher Program (formerly Section 8), assist low-income families, the elderly, and individuals with disabilities in affording safe and decent housing in the private market. Beneficiaries typically contribute a portion of their income towards rent, and the voucher covers the remainder, up to a certain standard.

Other examples include food assistance vouchers, like those used in the Supplemental Nutrition Assistance Program (SNAP), and childcare or education vouchers designed to help families access essential services. These programs use vouchers to directly facilitate access to specific necessities, ensuring funds are used for their intended purpose.