Payroll is one of the most significant elements of your overhead, so it's important to keep accurate records. In addition, if your company ever gets audited, the auditor may ask to see your payroll ledger. And, as is the case with most records, your payroll ledger may play an important role during the due diligence phase of a merger or acquisition. There are several other compelling reasons to maintain a clean, consistent payroll ledger, including the internal analysis of financial systems and practices, so it's helpful to know what a payroll ledger is, why you need it, how to use one and how to make one.