As a consumer, you’re used to paying with debit cards, credit cards, by bank transfer or even by old-school check. When you receive payment of any kind, it’s in cash, or by a bank transfer, a payment to a digital wallet or even, again, by old-school check.
You may not be so familiar with voucher checks, however. A type of check that features one or more additional information slips that the issuer and recipient tear off and keep for their records.
This article looks at how to use voucher checks, the possible uses and benefits of them for businesses and what can happen if a business doesn’t use them.
How to use a voucher check
Using a secure plus voucher check or any other voucher check is rather straightforward. Here is our guide on how to use them:
- Collect all the documents that contain the information you need to place on the voucher check.
- Fill in the check.
- Print the prepared check.
- Sign the check and the voucher (or submit it to the authorized signatory, who must sign it, for approval).
- Issue the voucher check. The recipient must acknowledge receipt and sign the voucher check.
- File the voucher.
Using a voucher check for business
Although lots of small businesses use standard checks to make payments, many others use voucher checks because they provide a structured way to track the payments they make against specific invoices or services. The information on the vouchers mirrors the information on the check, providing the business with a record of the payment.
Often businesses will use voucher checks in three different ways:
Vendor invoices
Businesses use different suppliers and must settle lots of invoices. Voucher checks allow a business to create a record that indicates what the payment is for and the invoice it is settling. As well as helping reconciliation, the check creates an audit trail.
Payroll
Payroll is another highly useful area of voucher check usage. The checks provide a clear breakdown of the payment and can include information about net pay, deductions and hours worked. This shows transparency of earnings and builds trust between the employer and the employee. If the employee has any questions about a payment, the information on the voucher can clear them up.
Expense reimbursements
A typical procedure for reimbursing expenses is for the employee to submit expense reports. The voucher creates a clear record of what the business is reimbursing the employee for. They can attach receipts and descriptions. Both parties have a clear understanding of what the expense was for. The record itself is crucial not just for this, but also for compliance when it comes to recording expenses.
What could happen if you don’t use voucher checks
Clearly, voucher checks have several benefits, but there are extra ones that you could miss out on for your business by not using them.
Security
A lot of voucher checks are equipped with security features to prevent fraud. The main one is a watermark, often embedded into the paper, and is very hard to replicate. Another is microprint, which is so small that it’s also very hard to replicate. Holograms and thermochromic ink are other features difficult to counterfeit, making it easier to prove authenticity. Not using voucher checks could expose your business to misuse of your capital.
Accuracy
Voucher checks create a paper trail of transactions because the different components of the check ensure the transaction has been documented in detail. This helps to make financial records more accurate and reconciliation simpler. Not using voucher checks means your financial records could be less accurate. You might also have trouble avoiding compliance issues.
Although businesses have different options open to them when making payments, they should consider voucher checks. These checks enable them to track transactions and record them accurately. Business can also protect themselves from fraud within the company by using voucher checks.
