![]() ![]() The good news is that you don't need to worry about salaries when using payroll software like Hourly. ![]() You include the salaries and wages of employees working in the production unit in the COGS section and those working in the sales unit in the Selling section of SG&A. Information technology (IT) support staff.The only salaries included in G&A expenses are for employees who don't directly work in the production or sales departments. Legal fees, like contingency fees for property damage cases, personal injury cases, or other cases involving financial losses General office supplies, such as employee snacks and perks Salaries for IT staff, bookkeepers, admin assistants, data entry clerks, etc.įinance and accounting staff salaries, plus applicable fringe benefits, like health insurance and paid vacationĭepreciation on office equipment and furniture (the value your equipment loses yearly through regular use) Here's a quick breakdown of both types of expenses:Įxecutive wages and benefits (CEO, CFO, etc) They include executive salaries and accounting, legal, and professional fees. Administrative costs relate to the management of your company. Examples include rent, utilities, insurance, and general supplies. Your business takes on general expenses as part of its day-to-day operations. As the name implies, we break G&A expenses into two groups: general and administrative costs. Some examples of G&A expenses include executive salaries, rent, and utilities. Selling expenses are related to marketing, distributing, and selling a product. COGS, however, are the direct costs of making the products a business sells.Īlthough selling and G&A expenses are grouped together, they aren't the same. When you look at a company's income statement, you'll find these costs in Operating Expenses or SG&A expenses (selling, general, and administrative)-both of which are listed below cost of goods sold (COGS). These exist whether you generate revenue or make profits or losses. ![]() General and administrative expenses are costs that aren't related to sales or production that you take on when running your business-like internet and power bills, executive salaries, and rent. So what exactly is the full meaning of G&A, and why is it important for you to track G&A expenses? We'll cover all that and more, so let's dive in! What is G&A in a Company? These are costs crucial to your company's day-to-day running, like supplies for your office and accounting fees. Whether you're running a construction company, a restaurant, or any small business, you'll need to cover general and administrative expenses (G&A). ![]()
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