SaaS

How to Record Monthly G&A Team Payroll for Finance, HR, Legal and Executive Staff

Recording gross salaries for General and Administrative staff as operating expenses below the gross profit line.

Account NameTypeDebit ($)Credit ($)
G&A Expense — SalariesExpense (+)35,000.00-
Wages PayableLiability (+)-35,000.00

💡 Accountant's Note

General & Administrative (G&A) salaries are operating expenses below the gross profit line. They are tracked separately from Sales & Marketing and R&D to give investors a clear view of the cost structure.

Practitioner & Systems Framework

💻 ERP Architecture

G&A includes: finance, accounting, HR, legal, IT administration, and the CEO/COO/CFO. Be careful not to misclassify roles — a VP of Engineering is R&D, not G&A. A VP of Sales is S&M, not G&A. Accurate department tagging in the HRIS (BambooHR, Workday) flowing to the ERP ensures correct classification. G&A as a % of revenue is a key benchmark investors use to assess operational efficiency.

⚠️ Audit Flags

Auditors verify cost center assignments match actual employee roles and that executives are classified correctly. Any salary partially attributable to multiple departments (e.g., a CEO spending 50% on fundraising) may require allocation across G&A, S&M, and potentially R&D.

📄 Required Documentation

Payroll register with department cost center, org chart confirming G&A roles, any salary allocation memo for multi-function executives, and G&A as % of revenue trend analysis.

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QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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