Voucher

What Is a Voucher?

The word voucher covers several related ideas in finance and accounting. In each case, it is either a record that supports a financial event or an instrument that entitles its holder to something of value. The most common meanings are:

• Accounting voucher: a document, such as an invoice, receipt, or payment request, that supports a journal entry in a company's books.
• Bond coupon voucher: historically, bearer bond certificates carried detachable coupons, sometimes called interest vouchers. The holder clipped a coupon and presented it to collect the interest due.
• Prepaid voucher: a credit issued by a merchant or service provider and redeemable for goods or services, often with a stated value and expiry terms. Gift cards are a familiar example.

How Vouchers Are Used

Accounting vouchers are typically numbered and filed so that each ledger entry can be traced back to its source paperwork. Many organizations require a voucher to be reviewed and approved before payment is released. This is one of the internal controls meant to reduce duplicate or fraudulent payments.

Bearer bonds did not record the owner's name, so whoever physically held the certificate and its coupons could claim payment. This is why each coupon had to be cut off and presented to the paying agent. Bearer bonds are now rare in most markets.

Why It Matters to Investors

For individual investors, the term most often appears in two places. First, when reading a company's financial statements or audit reports, voucher-based controls are one sign of careful record keeping. A single document does not prove accuracy, though, so it is only one piece of the picture.

Second, when holding a prepaid credit, the voucher's terms determine what can be claimed, when, and from whom. Prepaid vouchers carry counterparty risk: if the issuer fails, the remaining balance may be lost. These vouchers may also lack the protections that apply to bank deposits. Checking expiry dates and transferability before relying on a voucher helps clarify its value.