Bill Hanna, CPAAccounting Leader Driving Financial Excellence

CFO analysis: when costs are growing faster than revenue! #fp&a #cfos

18 Oct 2026 · 1 min

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1:11

In this segment, Bill Hanna, CPA, examines a company's general and administrative (G&A) expenses, emphasizing that G&A should grow slower than revenue. He highlights that G&A increased 58% year‑over‑year, outpacing revenue growth of 49%. Within G&A, salaries, wages, and benefits surged 115% YoY, a red‑flag indicating potentially excessive hiring. Hanna questions whether the company is over‑staffing G&A in anticipation of future revenue and stresses the need to investigate hiring practices and tighten cost control on this support function.

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Now, G&A, or general and administrative expenses, this is a cost center of the company that should be always growing less than revenue grows. And we can see here that G&A grew by 58% year over year, and that's a number that is highlighted in red because that is a high growth, 58%, compared to revenue, which grew by only 49%, right? So for example, salaries and wages seems to be an area where we're growing super fast, 115%. And the corresponding benefits as well. 115% growth year over year compared to 49%, that is absolutely not acceptable in terms of costs rising in the business. And that can indicate that we are hiring for G&A way faster to support revenue that doesn't exist yet. So are we hiring extras because we are anticipating a huge rise in revenue in the next year? Maybe. So this is the kind of question you want to find out, is why are we spending so much on G&A that is such a support function in the business that we should do our utmost best to control the costs here?