Description
General and administrative (G&A) expenses come from a company's day-to-day operations and may not be directly associated with a particular department or function. Also known as operational overhead expenses. these impact the overall business.
Example
Examples of general and administrative (G&A) expenses are rental expenses, consultant charges, depreciation costs, insurance, utilities, etc. These may also include salary and benefits for employees.
Why it matters
G&A expenses impact the company's overall costs, which, in turn, impacts its income. Since these costs have many components, they may be complex to calculate depending on the company's size. Depending on the quantum, companies may need to hire consultants to calculate these costs and report them appropriately.