What Is a Voucher Check?
A voucher check is a combination of a check and a voucher, sometimes known as ‘remittance advice.’ It contains essential information about the transaction parties, providing an auditable paper trail for the payment made via the check.
Key Takeaways
- A voucher check is an official form of payment that helps create an audit trail detailing payment information.
- These checks consist of three parts: the check itself, a voucher for the payee, and a voucher for the issuer. Historically, before computerized payroll, these parts came in one perforated sheet of paper.
- Typically, voucher checks are utilized by a company’s payroll department and are often referred to as payroll checks in this context.
Understanding Voucher Checks
Voucher checks play a critical role in creating a paper trail for payments made by the issuer. The recipient separates one voucher portion to keep as a record before cashing the check, while the issuer retains the other part.
When used in computerized accounting systems, voucher checks consist of three parts that fit onto standard-sized printer paper for convenience. The checks are generally business-sized — longer than standard personal checks but with the same width. One part is the check, and the other two are the vouchers meant for the payee and the issuer’s records, easily separated by perforations.
A voucher serves as a document utilized by a company’s accounts payable department, tracking and gathering all supporting paperwork needed for authorizing and monitoring the payment of a liability. Essentially, a voucher backs up accounts payable, invoicing, and payroll records. This internal accounting mechanism is vital for confirming that each payment is authorized and that goods or services were indeed received.
Who Uses Voucher Checks?
Voucher checks are predominantly used by payroll departments and are synonymous with payroll checks. The voucher often contains a voucher number, payee’s name, date, amount (gross and net after deductions), necessary signatures, and relevant memo notes. Although direct deposit is increasingly the norm for paying employees, maintaining a paper trail for back-up is standard practice.
Vendors also frequently use voucher checks. These checks are issued when an invoice is matched with a purchase order and documented proof that the said order was fulfilled. For accounts payable departments, maintaining a record of voucher payments to vendors is beneficial for resolving payment conflicts and aids in internal month-end financial closings.
Related Terms: check, voucher, payroll check, invoice, payee, issuer.
