G&A (General and Administrative) expenses are the overhead costs of running a business (rent, executive salaries, legal and accounting fees, insurance) that aren’t tied to making or selling a specific product. Combined with selling costs, they form SG&A on the income statement.
What Is G&A?
Common G&A Expenses
- Executive salaries
- Rent and utilities
- Legal and accounting fees
- Office supplies
- Insurance
- Administrative staff wages
G&A is a significant component of OPEX (Operating Expenses), which includes all day-to-day costs of running a business. In the 2026 SaaS Capital survey of more than 1,000 private B2B SaaS companies, the median company spent 15% of annual recurring revenue on general and administrative costs.
G&A and OPEX: The Big Picture
OPEX typically includes:
- Selling expenses
- General and Administrative expenses (G&A)
- Research and Development (R&D) for some companies
- Depreciation and Amortization
G&A is always part of OPEX. When G&A goes up, OPEX goes up, and vice versa.
Why G&A Matters
Understanding G&A matters because:
- It impacts profitability: G&A directly affects the bottom line as part of OPEX.
- It reflects operational efficiency: Lower G&A can indicate a lean operation.
- It’s a key component of financial analysis: Investors and analysts scrutinize G&A closely within OPEX.
G&A on Financial Statements
You’ll typically find G&A on the income statement, often grouped with Selling expenses as SG&A (Selling, General, and Administrative expenses). It’s part of operating expenses, which are subtracted from gross profit to calculate operating income.
Benchmarking G&A
Most published G&A benchmarks cover SaaS companies, and they measure G&A against revenue or ARR. The Benchmarkit 2026 report (CY-25 data, 176 to 196 companies per chart) shows:
| B2B SaaS segment | G&A as % of revenue |
|---|---|
| Median, all companies | 17% |
| Top quartile | 11% or below |
| 75th percentile | 22% |
| Under $5M ARR | 22% |
| Above $100M ARR | 12% |
The median fell from 24% in CY-22/23 to 17% in CY-25, so older benchmarks overstate what is typical today. SaaS Capital puts the 2026 median at 15% of ARR and finds equity-backed companies spend 64% more on G&A than bootstrapped ones, which it links to investor reporting requirements.
Remember, lower isn’t always better. Too low G&A might mean underinvestment in key areas like compliance or IT infrastructure.
Managing G&A
Here are some strategies companies use to keep G&A in check:
- Automation: Using software to handle administrative tasks.
- Outsourcing: Hiring external firms for specialized functions.
- Shared services: Centralizing admin functions for multiple business units.
- Zero-based budgeting: Justifying G&A expenses from scratch each year.
These strategies aim to reduce overall OPEX by targeting G&A specifically.
G&A vs. Other OPEX Components
It’s important to distinguish G&A from other types of operating expenses:
- Cost of Goods Sold (COGS): Direct costs of producing goods or services (not part of OPEX).
- Selling Expenses: Costs directly related to sales activities (part of OPEX).
- Research and Development (R&D): Costs for innovation and product development (part of OPEX for some companies).
G&A is the catch-all for operating expenses that don’t fit neatly into these other categories.
G&A Expenses FAQ
What does G&A stand for?
G&A stands for General and Administrative expenses, the overhead costs of running a company that aren’t tied to producing or selling a specific product. Examples include rent, executive salaries, legal and accounting fees, insurance, and office costs.
What is the difference between G&A and SG&A?
SG&A (Selling, General & Administrative) is the broader line item that combines selling expenses with G&A. G&A is the “general and administrative” portion only, the overhead left after you separate out direct selling costs. On most income statements they’re reported together as SG&A.
Is G&A part of OPEX?
Yes. G&A is always a component of operating expenses (OPEX), alongside selling expenses and, for some companies, R&D and depreciation. It is subtracted from gross profit to arrive at operating income.
What is a good G&A as a percentage of revenue?
For B2B SaaS, the median is 17% of revenue in the Benchmarkit 2026 report, falling from 22% for companies under $5M ARR to 12% above $100M. SaaS Capital reports a 15% median as a share of ARR. Lower isn’t always better: too little G&A can signal underinvestment in compliance, IT, or finance.