A general ledger (GL) is a complete record of all financial transactions made by a business during a specific period. It acts as the central hub of an organisation’s accounting system, categorising every financial activity into accounts such as assets, liabilities, income, expenses, and equity.
In the context of payroll and workforce management, the general ledger is critical—it reflects wage expenses, superannuation payments, tax obligations, leave liabilities, and more. Each of these elements must be recorded accurately to ensure compliance, financial health, and efficient business operations.
The general ledger is built on a double-entry accounting system, meaning every transaction is recorded in at least two accounts: a debit in one and a credit in another. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.
For example:
Each transaction is timestamped and often linked to a journal entry that explains the reason for the transaction. These entries can be generated manually or automatically by payroll or accounting software.
Payroll is one of the most substantial and frequent expenses for many businesses. Accurately mapping payroll entries into the general ledger is vital for:
With Microkeeper, general ledger data can be exported or integrated directly with accounting platforms, streamlining reconciliation.
Here are some of the typical general ledger accounts affected by payroll processes:
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Manual data entry can increase the risk of errors. That’s why many modern payroll platforms, including Microkeeper, offer features like:
These capabilities simplify accounting, reduce compliance risk, and free up time for strategic work.
A journal is a preliminary record of a financial transaction. Once approved, it’s posted to the general ledger, which serves as the official financial record.
No, it shows summarised entries (e.g., total wages, tax withheld). Detailed payslip information is stored separately in your payroll system.
For most businesses, having an accountant or bookkeeper to review GL entries is recommended, particularly to ensure compliance and accuracy in reporting.
The general ledger is the backbone of financial reporting and business compliance. Especially when it comes to payroll, maintaining accurate, well-organised GL entries is essential for business health. With an integrated solution like Microkeeper, you can streamline payroll-to-ledger workflows, reduce errors, and stay compliant—all without extra admin burden.
Disclaimer: This article is for general information only and does not constitute financial advice. Please consult your accountant or a registered tax agent for advice specific to your situation.