Rs. 100- Rs. 10 crore
Start investing with Rs. 100 | Easy KYC | Expert-managed funds
How to Invest in SIP A Beginner's Guide
In summary
A voucher is a financial document used to support and record a transaction in an organisation's accounting records. It can document payments, receipts, purchases, expenses, or adjustments and usually connects an accounting entry with supporting evidence.
A well-prepared voucher helps establish what happened, who received or paid the money, why the transaction occurred, and who approved it.
- Purpose: Provides documentary evidence supporting an accounting transaction.
- Key details: Usually include amount, date, payee, purpose, and references.
- Approval: Authorisation helps control payments and reduce unauthorised expenditure.
- Supporting evidence: Invoices, receipts, purchase orders, and contracts may accompany vouchers.
- Audit trail: Vouchers help trace accounting entries back to underlying transactions.
- Digital records: Accounting systems can create and retain vouchers electronically.
The Income Tax Rules, 2026 also recognise payment vouchers as one form of documentation for certain prescribed expenditure records.
What is a voucher in accounting?
In accounting, a voucher is a document that supports the validity and authorisation of a financial transaction. It provides evidence that a transaction has occurred and gives the accounting team information needed to record it correctly.
A voucher may relate to a payment to a supplier, an expense reimbursement, a receipt from a customer, or an accounting adjustment.
It can bridge the transaction and the corresponding entry in the books of account by providing a reference that can be checked during reconciliation or audit.
This is different from a consumer voucher, such as a shopping discount or gift voucher. The latter is generally a redeemable benefit rather than an accounting document.
How does a voucher work?
The exact process varies between organisations, but a typical payment voucher follows a series of controls.
- Transaction initiated: A purchase, expense, reimbursement, or other financial event creates a requirement for documentation.
- Voucher prepared: Relevant transaction details are recorded in the voucher.
- Documents attached: Invoices, receipts, purchase orders, or contracts are linked to support the transaction.
- Approval obtained: An authorised person reviews the transaction and approves it where required.
- Payment processed: The approved transaction is paid through the appropriate method.
- Accounting entry recorded: The transaction is posted to the relevant ledger accounts.
- Voucher retained: The voucher and supporting evidence are stored for future reference.
- Reconciliation performed: Accounting records can be checked against bank statements, invoices, and other records.
This documentation helps create an audit trail. Modern accounting systems can also maintain an electronic record of changes made to accounting data.
What are the different types of vouchers?
The classification can differ between accounting systems, but vouchers are commonly grouped according to the nature of the transaction.
Payment voucher
A payment voucher records a payment made by an organisation. It may be used for supplier payments, operating expenses, or other approved expenditure.
Receipt voucher
A receipt voucher documents money received by the organisation, such as customer collections, interest received, or other receipts.
Purchase voucher
A purchase voucher supports the recording of goods or services purchased by the organisation. The supplier invoice and purchase order may form part of the supporting documentation.
Journal voucher
A journal voucher supports a non-cash accounting entry or adjustment. Examples can include depreciation, provisions, corrections, or transfers between accounts.
Contra voucher
A contra voucher records transactions involving transfers between cash and bank accounts or between certain internal cash and bank accounts.
The exact classification and terminology may vary according to the organisation's accounting system and policies.
What information does a voucher contain?
The information required depends on the transaction and the organisation's internal controls. A comprehensive voucher may contain:
| Component | What it records |
|---|---|
| Voucher number | Unique reference for identification and tracking |
| Date | Date of preparation and/or underlying transaction |
| Payee | Person or organisation receiving payment |
| Amount | Transaction value and applicable deductions or taxes |
| Description | Purpose and nature of the transaction |
| Supporting references | Invoice, purchase order, contract, or other document numbers |
| Account codes | Ledger accounts affected by the transaction |
| Approval | Authorised person's name, signature, or electronic approval |
| Payment method | Cash, cheque, bank transfer, or another method |
| Remarks | Additional information relevant to the transaction |
Last updated: October 2026
The objective is to make the transaction sufficiently clear that another authorised person can understand and verify the accounting entry.
What is an example of a voucher?
Suppose a business purchases office equipment worth Rs. 15,000 from a supplier.
The supplier provides an invoice containing the goods purchased and the amount payable. The accounts team prepares a payment voucher referencing the supplier, invoice, transaction date, amount, applicable taxes, and payment details.
After the authorised person approves the transaction, the business makes the payment. The voucher is then linked to the accounting entry and supporting invoice.
During a later review, the business can trace the Rs. 15,000 payment from the accounting records back to the voucher and supplier invoice.
Why are vouchers important in accounting?
Vouchers support several important accounting and control functions.
Creating an audit trail
A voucher connects an accounting entry with supporting documentation. This helps auditors and internal reviewers trace transactions and investigate discrepancies.
For investors assessing a company's financial records, documentation supporting transactions contributes to the reliability of the underlying accounting information. Related concepts such as standard deviation are relevant to investment analysis but measure something different: variation in investment returns rather than the quality of accounting documentation.
Strengthening authorisation controls
A voucher can require an authorised person to approve expenditure before payment is processed. This creates a control against unauthorised transactions.
Reducing errors and duplicate payments
Matching vouchers with invoices and accounting entries can help identify duplicate payments, incorrect amounts, missing documents, or coding errors.
Supporting tax and compliance records
Businesses may need to retain books and supporting documents so that income and expenditure can be substantiated when required. The Income Tax Rules, 2026 specify particular books and documents that certain taxpayers must maintain.
Facilitating reconciliation
Vouchers provide references that can help accounting teams reconcile ledger entries with bank statements, supplier records, and other transaction records.
What are the limitations of vouchers?
A voucher is evidence of a transaction, but its existence alone does not prove that the transaction is genuine or correctly valued.
A voucher may contain incorrect information, lack adequate supporting documents, or have been approved without appropriate verification. Strong internal controls therefore require businesses to review the underlying evidence rather than treating the voucher as conclusive proof.
Digital accounting systems can improve traceability, but businesses still need appropriate access controls, approval procedures, document retention, and review mechanisms.
A volatility measurement or Value at Risk calculation, for example, serves an investment-analysis purpose and should not be confused with documentary controls used in accounting.
What is the difference between a voucher and an invoice?
An invoice is generally issued by a seller to request payment for goods or services supplied. It describes the transaction and amount payable.
A voucher is an internal or supporting accounting document used to record, verify, and authorise the transaction. An invoice may therefore be attached to or referenced by a payment or purchase voucher.
They serve related but different purposes. The invoice originates from the supplier, while the voucher is often created or processed by the organisation recording the transaction.
How do vouchers support financial reporting?
Vouchers help connect individual transactions with the accounting records from which financial statements are prepared. When transactions are properly supported, authorised, classified, and recorded, the accounting system has a stronger documentary foundation.
They can also help identify discrepancies before they affect reported figures. During an audit or internal review, supporting documents can be examined to determine whether recorded transactions have appropriate evidence.
This makes voucher controls relevant to broader financial statement analysis, although a voucher by itself does not establish that financial statements are accurate or complete.
Conclusion
A voucher is an important accounting document that supports the recording, authorisation, and verification of financial transactions. By connecting accounting entries with invoices, receipts, approvals, and other evidence, vouchers help businesses maintain organised records and stronger financial controls.
Their effectiveness depends on accurate preparation, appropriate supporting documents, proper approval, secure retention, and effective reconciliation. A voucher should therefore be viewed as one part of a broader accounting and internal-control framework.
Last reviewed: October 2026
Mutual funds are subject to market risk. Please read the scheme-related documents carefully before investing.
Explore Investment Tools
Articles and Insights
Frequently Asked Questions
Voucher controls
Business and audit use
Transaction documentation
Can a voucher be created electronically?
Yes. Vouchers can be created, approved, stored, and retrieved electronically through accounting or enterprise resource planning systems. Digital vouchers can include electronic approvals, transaction references, timestamps, and links to supporting documents. The system should provide appropriate access controls and preserve relevant records so that transactions remain traceable and can be reviewed when required.
Should every voucher have an invoice attached?
Not necessarily. The supporting document depends on the nature of the transaction. A supplier payment may be supported by an invoice, while an internal adjustment may require a journal explanation or other evidence. The important consideration is whether the voucher has sufficient documentation to substantiate the transaction and comply with the organisation's accounting and legal requirements.
Who usually prepares a payment voucher?
The accounts or finance team commonly prepares payment vouchers, although the specific responsibility varies by organisation. The person preparing the voucher may not be the person approving the payment. Separating preparation, approval, and payment responsibilities can strengthen internal controls by reducing the risk that one individual can initiate and complete an unauthorised transaction.
How long should accounting vouchers be retained?
There is no single retention period that applies to every voucher in every situation. The applicable period depends on the nature of the records, tax requirements, company-law requirements, accounting policies, and other regulations. Businesses should follow the retention requirements applicable to their entity and transaction type rather than relying on a universal period.
Can a voucher be cancelled after it is created?
A voucher may be cancelled or reversed where an accounting system and applicable controls permit it, but the original transaction should not simply disappear without an appropriate record. A cancellation or reversal should generally leave a trace explaining what changed, why it changed, and who authorised the action. This supports the integrity of the accounting audit trail.
Disclaimer
Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319
BFL does NOT:
(i) provide investment advisory services in any manner or form.
(ii) carry customized/personalized suitability assessment.
(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.
In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.
Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.
Disclosure: Bajaj Finance Limited (BFL) is a distributor of Mutual Funds with ARN - 90319 and distributes mutual funds of Bajaj Finserv Asset Management Limited (BFSAMC). BFL receives commission towards distribution of mutual fund products. BFSAMC is a group company of BFL, carrying business on arm’s length basis without any conflict of interest and in accordance with the prevailing law / regulation.
Disclaimer
Bajaj Finance Limited ("BFL") is an NBFC offering loans, deposits and third-party wealth management products.
The information BFL contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.
This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.
Disclaimer
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that the SIP calculator are for illustrations only and do not represent actual returns which may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.