Why are journal vouchers reviewed before they are entered into the general ledger?

Journal vouchers are critical components of an accounting system as they serve as a supporting document for entries made into the general ledger. Reviewing these vouchers before they are entered is essential to maintain the integrity and reliability of financial reporting.

The primary reason for reviewing journal vouchers is to verify the accuracy, completeness, and authorization of the information contained within them. This step ensures that all information is correct, that no pertinent data has been omitted, and that the entries have received the proper approvals. This verification process helps to prevent errors that could have significant implications for financial statements and overall decision-making. If incorrect or unverified information were to be entered into the general ledger, it could lead to financial misstatements and impair the usefulness of the accounting records.

While compliance with external regulations, minimizing data entry time, and preparing for audits are important aspects of the overall accounting process, the fundamental goal of reviewing journal vouchers is rooted in ensuring the quality and reliability of the financial information being recorded. This foundational control helps to safeguard the integrity of the financial reporting process.