What is a Voucher?
A Voucher is also popularly known as a document of record for the initial phase of any transaction, i.e., purchase, sales, payment, or receipt. It is seen as one of the primary documents when describing the authorisation of the source of payment from the company.
Also known as "memorandums," these documents are also used as computerized or manual systems, a choice of the various business organizations in the market.
It is a known fact that every company has a department named the accounts payable department. This department must make payments due to different parties, namely the suppliers and the creditors.
Using the Vyapar free inventory management software voucher format helps create a voucher that works as a document that can be used as a backup for initiating the various procedures of filing and collecting the documents for the settlement of liability.
One of the most important functions of this accounts payable department is also to control the internal accounting mechanism of the company. It is ensured by this mechanism that the company makes only pre-authorised payments. This mechanism also ensures that these payments are made for the goods or services rendered that are purely based on the agreements made before.
So, a voucher is a document of support for an invoice that has been received by the company. Issuing a voucher means that the invoice is checked and has the confirmation to be paid. The voucher now authorizes the invoice payment as mentioned on the balance sheet.
What are the Different Types of Vouchers?
We have clearly come to an understanding of the importance of vouchers for different companies in the market. But to differentiate between the different types of vouchers, we need to take note of the source documents for the same.
In manual accounting, the vouchers are specified according to the transactions. This helps in making journal entries for the same. This way, specific vouchers are created for specific transactions, which are formalized with the sign of the accountant on them.
Here are the most frequently used types of vouchers:
This is the most common form of a voucher which is created for all forms of cash transactions. It has two subtypes which are as follows:
The debit voucher is also known as the payment voucher. The main function of this voucher is to showcase the transactions where there is an outward movement of funds from the company.
The main goal of creating this voucher is to record different transactions, cash or bank, which have been for a payment to another organization.
The credit voucher is also known as the receipt voucher. This voucher is prepared when a company is receiving money. This money can come from various sources such as:
- From consumers as sales revenue.
- From shareholders against their equity capital in the company.
- Through the sale of fixed assets.
- Through interest earned from various other sources.
- From debtors
- And other sources.
The credit voucher or the receipt voucher can also be differentiated by its two types. One is a cash receipt voucher, and the other is a bank receipt voucher.
There are various names given to the non-cash voucher. Some of them are:
- Transfer voucher
- Journal voucher
The various cases which are recorded under this type of voucher are:
- Sale of goods or purchase of goods on credit.
- Sale of fixed assets or purchase on credit.
- Returned goods concerning sales or purchases on credit.
- Bad debts in written form
- Any other form of non-cash transactions.
Any form of transaction that involves sales of goods and services is recorded under the sales Voucher. Sales voucher records all transactions involving cash and credit sales that take place in a company.
The process starts when the company's debtor account is debited; meanwhile, the sales account gets credited. This voucher then acts as proof and, in many cases, as hard evidence that the sales of goods and services have taken place in a company.
Any transaction revolving around the purchase of goods and services is passed under a sales voucher's criteria. This type of voucher is created just for the specific purpose of sales that have taken place through cash, bank, or credit in a company.
The purchase is initiated when the supplier for the goods or services is credited. Various documents support the purchase order, such as the purchase order, supplier slip, and other relevant documents.
All the company transactions that have occurred in the past are recorded through the supporting voucher. This serves as written documented proof of a company's past transactions.
There are many other documents that act as supplementary documents for the supporting voucher, such as the expense bill, fuel bills, and more.
What is the Importance of Cash Vouchers?
A cash voucher is a document used to facilitate an invoice's payment. It is a tool that businesses use to provide cash discounts and keep track of their expenses. You can ensure that all of their bills are paid on time.
It is a document that proves that cash was received or paid. It typically includes the date, amount, purpose, and signature of the person authorizing the transaction. It is a simple document that can be used by businesses of all sizes. The voucher can be used to track the receipt of cash from customers, employees, or other businesses. The voucher can also be used to track cash payments to vendors or suppliers.
The cash voucher format can be used for both personal and business transactions. A cash voucher can be used to pay for goods or services purchased, or it can be used to make a payment on an outstanding invoice. The voucher can also be used to make a payment on a loan or to make a deposit into a savings account.
Sometimes, a cash voucher is a small, one-time-use currency unit used to pay for goods or services. These units are often available from a nearby store or online. They are often called up at no cost by a computer program and are then ready to go when the customer leaves the store.
Cash vouchers are a new way of giving that is gaining popularity among consumers and businesses alike. They are a way to give companies the power to record various transactions. And they are easy to use, just take a check or money order and give it to the accounts department.
Major Benefits of Using a Cash Voucher
A cash voucher needs to be designed in a professional manner as it is a one-stop solution for companies that look forward to dealing in an organized cash system.
As a system of record, it helps keep a sharp eye on daily transactions while checking the inflows and outflows of cash in the company.
A cash voucher can also be attached with various other documents containing sales and purchase transaction details. And at a specific time, they can be consolidated to get details about the exact amount which is present in an account or a petty cash register.
Some major benefits of a cash voucher include the following:
- A cash voucher is a great way to give someone a specific amount of money to spend. This can be helpful if you want to give someone a gift but are not sure what they would like.
- A cash voucher can also be a good way to budget. If you know you have a certain amount of money to spend, you can use a cash voucher to keep track of your spending.
- Cash vouchers can also be used as a form of payment. If you are unable to pay with other payment methods, you may be able to purchase an item using a cash voucher of equivalent value.
- It can help to save money on your grocery bill, as well as reduce your overall grocery bill. Additionally, a Cash Voucher can help you save money on car registration and emissions testing.
- It is a simple rule of business that the one thing that catches the eye sells the most. Such is the case with cash vouchers. In this way these vouchers are more efficient when it comes to communicating with the consumers and quickly become marketable.
- When new customers see any form of offers or discounts in the form of cash vouchers, they take a step forward to spend more to claim the cash vouchers. This helps boost sales for the company offering such vouchers.
- There are times when a consumer is not carrying enough cash or any other means of payment such as debit or credit cards. In such cases, A cash voucher can be given to people who don't have any other means of payment.
- They are more durable and last longer than other types of vouchers, meaning that they may last longer if given once and not again
- They can be given to people who don't have any other way of paying for them- such as cash or check. They are more affordable than buying value-added products from Sephora, such as sky-laps or lightening-up.
- A cash voucher can easily be presented in the form of a gift or present. This helps in building better client relationships.
- These cash vouchers also help you in marketing your business while attracting more customers to your business through various offers. This will be like hitting two birds with one stone.
- These vouchers help you in balancing the expenses of your business which go into marketing and generating sales. As mentioned above, this is a good method to decrease your marketing expenses so that you can invest more on your product.
- A cash voucher provides a business with a great way to generate more leads and RFAs.
- Creating a cash voucher also provides the marketing team and the sales management team with more practical ideas to make a stronger foothold in the market. This will slowly but steadily increase the productivity of the company without any negative results.
Essentials Elements of a Cash Voucher Format
Various details need to be included in the creation of a cash voucher in professional format. Given below is the general format or the details that need to be included in a simple or general cash voucher format.
Details of the company
The details of the company include the name of the company, its official logo, its address, and contact number, along with an alternative number.
A proper heading
The heading should clearly state that it is a Cash Voucher and its type, debit or credit. This signifies the type of voucher that has been prepared and dispatched.
Field for date
There is a space for the date in the cash voucher format where you must write the correct date when the payment is issued.
The details of the amount issued should be mentioned in words as well as figures. It helps provide the clear value of a cash voucher.
Mode of payment
The mode of payment needs to be mentioned, which includes details like whether the payment has been made in cash or through a bank cheque. After adding these details, the name of the bank, the account number, and other details also need to be mentioned to avoid any form of discrepancy.
Details of the recipient of the payment
The details of the person or organization receiving the payment need to be mentioned under this section in the cash voucher formats.
Details of the payee
The details of the person paying as the authority need to be mentioned in the cash voucher format. It will help keep a record of claimed and unclaimed vouchers.
Details of the transaction
The details of the transaction include the details regarding which the transaction has taken place.
Approval of designated authority
There is a signatory without whose signature the document can only be called a piece of paper. So, the cash voucher can only be made official after the sign of this signatory authority of the company's accounts department.
Approval of the cashier
It is mentioned in the document that the amount mentioned in it is handled by the cashier and is being done according to the transaction that has taken place.
Here the recipient signs signaling that he has received the payment. It is also taken as an acknowledgment of the payment made to him.
Download Cash Voucher Format
Frequently Asked Questions(FAQS)
What is the format of a cash voucher?
The general cash voucher format is as follows:
- The heading contains the details such as the type of the cash voucher that has been created.
- The first thing that needs to be included in the cash voucher are the proper details of the company that includes their address and their contact details. This helps in the proper identification of the company.
- Then the fields of date, mode of payment, amount payable needs to be filled.
- Now, the details of the payee needs to be filled which include their contact details.
- The details of the transaction also need to be included in the document along with the proper approval of the authority which is a crucial part of the process.
- In the end the receiver's sign and the approval of the cashier are needed to complete the document.
What is a cash-purpose voucher?
A cash voucher and a cash purpose voucher are the same. It is a document that proves that cash was received or paid. It typically includes the date, amount, purpose, and signature of the person authorizing the transaction.
Cash-purpose voucher is a simple document that can be used by businesses of all sizes. The voucher can be used to track the receipt of cash from customers, employees, or other businesses.
What is a Cash Voucher Template?
A cash voucher Template is ready to use document wherein the owner has to fill in the details required by the document to make it complete. These templates can be edited and shared, which becomes a boon in business.
With the help of the available cash voucher templates across all formats and minimal use of tools, one can easily create, share, edit and print or download their cash voucher without any problem. These templates are available in various formats, such as Word, Excel, and PDF.
How do you write a cash voucher?
You can follow the prescribed cash voucher format to write a general cash voucher, or you can choose to use the accounting software Vyapar, which allows you to enjoy its template features. You can easily use these templates to write your cash voucher and share them with others in no time.
The Vyapar application is built to save time and cost for companies that are used up in the fulfillment of various activities. Using the Vyapar billing app makes it seamless for a business to create cash vouchers for customers.
What are the types of cash vouchers?
There are two types of cash vouchers:
- Debit vouchers
A debit voucher is a document used in double-entry bookkeeping. It is a voucher representing a debit transaction.
Debit vouchers are used to record transactions in the purchase ledger of a business. (The purchase ledger is a sub-ledger which records the value of the business's purchases.)
- Credit vouchers
Credit vouchers is a service that allows you to transfer a credit from one account to another. The credit voucher is the generic name of a payment instrument that bears the features of a banknote and a cheque. This type of a voucher is issued by an issuer (company or state).
It is used as a means of payment and has the same value as a certain amount of money.A credit voucher has the advantage over a banknote or a cheque that it can be issued in a certain amount only. The issuer determines the value of the credit voucher and its validity.
What is a cash voucher in a tally?
A cash voucher can be used in tally as a document containing all the details of a financial transaction that needs to be later recorded in the book of account.
What is a voucher in Excel?
A cash voucher created by using a cash voucher format in an excel is an Excel voucher. You can easily create and access your voucher in Excel through the excel template for vouchers available in the Vyapar app.