When it comes to understanding your business’s financial health, few things matter more than controlling overhead. That’s where G&A expenses come in.
Whether you're a CFO, accountant, or SME owner, knowing what G&A covers and how to manage it can directly impact your bottom line.
In this guide, we’ll explore the G&A meaning in business, break down common general and administrative expenses, and show how Pemo’s expense management tools help track and reduce overhead with confidence.
What is G&A in business?
G&A, or general and administrative expenses, refers to all the operational costs a business incurs to keep running; outside of sales, production, or direct service delivery.
G&A meaning in accounting
In accounting, G&A expenses are typically listed on your income statement under operating expenses. These costs don’t directly contribute to revenue, but they’re essential to business continuity.
So when you ask, “what is G&A in accounting?” or “what is G&A in business?” Think about the backbone of your operations: rent, utilities, salaries for non-sales staff, and office tools.
What does G&A stand for?
G&A stands for general and administrative; an umbrella term for essential business expenses that aren’t directly tied to making or selling a product.
G&A meaning in finance
In a finance context, G&A tells you how efficiently your business is operating. High G&A relative to revenue can indicate inefficiencies or bloat. Monitoring these costs regularly is key to staying lean, especially in the SME world, where margins can be tight.
Common G&A expenses examples
Let’s break down the most common general and administrative expenses:
- Office rent and utilities
- Software subscriptions for tools like email, HR, or project management
- Salaries for HR, finance, admin, and executive roles
- Professional services (legal, accounting, auditing)
- Insurance premiums
- IT support and office equipment
- Corporate travel for non-sales functions
- Office supplies and printing
Some businesses also include depreciation and amortization under G&A, depending on how their chart of accounts is structured.
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To keep G&A under control, companies use tools like Pemo to track every operating expense in real time, assign it to the right category, and make smarter decisions with clean data.
Why G&A matters more than you think
It’s easy to overlook G&A costs because they feel fixed or “just part of doing business.” But over time, unchecked G&A finance spend can quietly erode your margins.
Here’s why managing G&A is essential:
- It affects your operating profit margin
- Investors often look at G&A-to-revenue ratios
- CFOs use it to assess scalability and cost discipline
- Cutting unnecessary G&A can free up cash for growth
With Pemo, finance teams can easily identify G&A trends, flag overspending, and implement controls across departments, without slowing down operations.
How to manage G&A expenses effectively
Here are four ways to bring more visibility and control to your general and administrative expenses:
1. Track G&A by department
Instead of lumping all admin spend into one category, break it down by department or function; like HR, IT, or finance.
With Pemo, you can assign cards to individual teams and automatically tag expenses by category, so you know exactly where the money’s going.
2. Set monthly budgets and alerts
Create a realistic monthly G&A budget, then monitor it in real time. If a department is nearing its limit, managers should be notified before the overspend happens.
Pemo’s smart controls allow you to set spend limits by user, department, or vendor type; giving you flexibility and control.
3. Eliminate manual tracking
Manual data entry and spreadsheets aren’t just slow; they increase the risk of errors and delays.
Pemo automates expense capture with receipt uploads, AI categorization, and instant syncing to your accounting system, so your G&A data stays accurate and audit-ready.
4. Review and optimize vendors
G&A often includes recurring vendor subscriptions that get forgotten over time. Conduct a quarterly audit to cancel or renegotiate what you don’t need.
Pemo makes it easy to spot recurring charges and track how much you’re spending with each vendor.
G&A vs S&M vs COGS: what's the difference?
To keep your income statement clean, it’s important to separate G&A from other major cost buckets:
- COGS (cost of goods sold): Direct costs related to production or service delivery
- S&M (sales and marketing): Costs related to lead generation and customer acquisition
- G&A: Everything else you need to operate; admin, finance, HR, executive
The clearer your separation, the easier it is to analyze your business performance and make targeted improvements. With Pemo, you can customize expense categories and tags to keep reporting aligned with your structure.
Is G&A the same for every business?
Not at all. The G&A meaning in business can vary by industry, company size, and stage of growth.
- Early-stage startups may have higher G&A as they build infrastructure
- SaaS businesses tend to have leaner COGS but higher G&A (due to software, admin, and support)
- Retail or logistics companies may push more costs into COGS or operations
No matter the industry, having real-time data on your G&A is critical. Pemo gives you the visibility and control to scale responsibly, without letting overhead get out of hand.
Final thoughts: G&A isn’t just overhead; it’s an opportunity
When managed well, G&A expenses become a source of efficiency, not just a cost of doing business.
By tracking, categorizing, and controlling G&A with Pemo’s all-in-one spend management solution, you empower your team to:
- Spend within budget
- Eliminate waste
- Make faster, smarter decisions
- Focus on strategic growth
Ready to take control of your operating costs?
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