What Is a Voucher Check?
Let me explain what a voucher check is—it's essentially a check combined with a voucher, which you might also hear called remittance advice. This setup includes key details about the transaction parties and builds a solid auditable paper trail for the payment.
Key Takeaways
- A voucher check is a form of official payment that creates an audit trail about that check's payment details.
- Voucher checks have three parts: the check, a voucher for the payee, and a voucher for the issuer. Before computerized payroll, these would come in the form of three perforated items from a standardized paper sheet.
- Voucher checks are commonly used by a company's payroll department and may be referred to as payroll checks in that context.
Understanding Voucher Checks
You should know that the voucher check establishes a paper trail for the payment made by the check's issuer. When you receive one, you detach your voucher part and keep it for your records before cashing the check, while the issuer holds onto their portion.
In computerized accounting systems, these voucher checks come with three parts that fit on standard-sized paper sheets, making them printer-friendly. They're typically business-sized—longer than a regular check but the same width. One part is the actual check, and the other two are vouchers for you as the payee and for the issuer's records. Perforations allow easy separation of these sections.
A voucher itself is a document that a company's accounts payable department uses to collect and file all supporting documents needed to approve and track liability payments. It's basically the backup for accounts payable, invoicing, or payroll. (Accounts payable are those short-term bills companies owe to vendors and suppliers.) The voucher matters because it acts as an internal control to ensure every payment is authorized properly and that the purchased goods or services were indeed received.
Who Uses Voucher Checks?
Companies often use voucher checks in their payroll departments, where they're known as payroll checks. The voucher includes details like a voucher number, payee name, date, amount (gross and net if deductions apply), signatures, and any necessary memo notes.
For payroll, even with direct deposit growing as the standard way to pay employees, maintaining a paper trail backup remains a common practice.
Vendors also rely on voucher checks. Here, you issue one when an invoice matches a purchase order and confirms the order was fulfilled. For the accounts payable team, keeping a file of these voucher records helps resolve payment disputes and prepare books for internal month-end closings.
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