What does G&A stand for?

G&A stands for general and administrative expenses in financial planning and analysis (FP&A). These include the day-to-day costs of running your business—such as HR, finance, legal, accounting, rent, utilities, non-departmental payroll, and business licenses—all essential to supporting operations behind the scenes.

Are wages and salaries included in G&A costs?

Wages and salaries are included in G&A costs when they’re associated with G&A functions. For example, the accounting team would fall under the G&A umbrella, so wages and salaries for all full-time hires in the accounting department would be included.

What is the difference between G&A and operating expenses?

G&A expenses represent overhead costs that don’t tie directly to specific business functions like production, sales, or R&D. Instead, they support the company’s overall operations—helping to keep the business running behind the scenes. In contrast, operating expenses include all costs tied to a company’s core activities. This covers the cost of goods sold (COGS) or, in SaaS, cost of services, along with broader operational costs—G&A included. In other words, G&A is a subset of total operating expenses.

Is G&A a fixed or variable cost?

G&A includes both fixed and semi-variable costs. Examples of fixed G&A costs include office space, and utilities, whereas office equipment that is purchased based on new business needs is considered semi-variable.

What is the difference between G&A and SG&A?

Selling, general, and administrative (SG&A) expenses include G&A expenses plus any expenses related to selling the product, such as sales and marketing expenses or advertising.

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