The cash voucher template is a document that is prepared at the time of paying and receiving cash payments. There are two types of cash voucher templates, one is the credit voucher and the other is the debit voucher. At the time you receive cash as payment for selling products or services, a credit voucher is issued for your customers. Similarly, when you pay cash to buy material and other equipment for production, you issue a debit voucher. Basically, it is divided based on the purpose for which they are prepared. Going further, there are certain points which are required to mention when you prepare a cash voucher. These are the name and address of entities, date of preparing voucher, accounting voucher number, and the net amount of the transaction. It is also required to mention a brief description of the transaction, the signature of the person who has prepared the voucher and the signature of another entity as well.
Importance of Cash Voucher
Cash voucher formats are part of the financial documentation system and are filled at a time when someone wishes to withdraw or receives cash from his or her account. Any person fills out this voucher to mention the reason for the withdrawal or deposit. To maintain a proper record of all cash transactions, employees are required to attach proof of using a credit voucher. They can attach invoices or bills for those expenses which they incurred and are now willing for full reimbursement. Moreover, if you wish to use a cash voucher for an expense from your own account, it would be wise to attach the receipt of the original purchase transaction. A cash voucher is part of a personal management system which helps the account holder to keep a record of all cash transactions. This is one of the methods to keep financial control on the petty cash accounts and to assure no one can abuse or mismanage the funds. In other words, it provides a record of cash payment along with evidence which you made to purchase a product or inventory.
Details of Cash Voucher
The cash voucher is one of the most important document because in a business thing which matters the most is the written authorization and a voucher is a written authorization that is equipped with all the information related to the transaction. This voucher guides you to find out when the transaction takes place. How many entities are involved in it and did they agree on all the terms of payment? Using a cash voucher assists you in maintaining the financial accounts of a business. Moreover, it is a system that reduces the risk of fraud or misuse of funds as every transaction is in written form. While preparing the cash voucher, it is equipped with all the details that one can question them anytime they find some sort of confusion in the accounts.
