How SaaS CFOs in 2025 Are Over-Spending on G&A (And Exactly How to Stop It)

If you’re a SaaS CFO in 2025, chances are someone has recently asked you:
“What’s your G&A as a percent of ARR?”

Not your burn rate. Not your CAC.
G&A.

Why? Because suddenly, back-office spend is getting the microscope treatment. And for good reason. While most CFOs have nailed the topline efficiency metrics, many are bleeding through the side door—quietly overbuilding HR, Finance, Legal, and IT long before the revenue justifies it.

We’re not talking about cutting staff to save cash.
We’re talking about strategic G&A discipline—what to build when, what to outsource, and how to align your admin cost structure to your revenue stage.

Here’s how we’re helping SaaS companies do it—real benchmarks, real patterns, and action steps you can use now.

Why G&A Spend Is Under the Microscope in 2025

Over the past year, the SaaS finance world has shifted from “growth at all costs” to “profitable growth or don’t bother.”

Valuations are still tight. Capital isn’t flowing like it did in 2021. And most importantly:
Boards have stopped accepting ‘trust me’ as an operating plan.

In this new reality, general & administrative expenses—once buried in a line item nobody questioned—are now under a spotlight. The question isn’t “How cheap can we be?”
It’s:
“Does your G&A scale with your business—or with your org chart politics?”

And CFOs who can’t answer that confidently are at a disadvantage.

What’s “Normal” G&A Spend by ARR Stage?

There’s no universal formula. But there are real patterns. We’ve compiled these from our own client benchmarking and sources like Benchmarkit.ai’s 583-company SaaS cohort.

Here’s what “normal” looks like in 2025:

These numbers aren’t ceilings—but they are friction points.
If your G&A is higher than this and your business doesn’t feel dramatically smoother or faster than peers, it’s time to investigate.

What We’re Seeing on the Ground

We’re not using client names—but we’ll tell you what we’ve consistently seen across dozens of SaaS companies in the last 12 months:

• Companies at $3–6M ARR often have fully built-out HR or Finance teams that could handle twice the workload.
• Many $10–15M ARR firms have overlapping systems—two ERPs, redundant HRIS/payroll, dual analytics platforms.
• Legal is often over-scoped, especially for those using retained counsel “just in case.”

In nearly every case, the G&A structure wasn’t the result of reckless hiring.
It was inertia.

Someone added a tool because it was quick. A team grew because it got busy—but not because it scaled smart. And over time, a lean back office turned into a hidden cost center.

The 6 Most Common G&A Sinkholes

Here’s what you should check first—these are the usual suspects when we walk into a review:

• Admin headcount outpacing ARR: Especially in finance, HR, and operations
• Tool sprawl: Paying for overlapping or unused SaaS tools
• Fractional talent turning into full-time payroll: Without consistent ROI
• Vendor creep: Legal, audit, and consulting contracts on auto-renew
• No centralized G&A accountability: Spend lives in silos—no one owns the full view
• “Strategic” hires ahead of revenue: Great resumes, misaligned timing

These aren’t catastrophic alone. But together? They quietly consume capital that could be going to growth.

What CFOs Can Do at Each Stage

We coach our clients to tailor G&A structure to ARR tier—not headcount or complexity.

Here’s what that looks like:

<$1M ARR

• Keep core G&A functions lean—one finance generalist, one part-time HR solution, outsourced legal
• Use fractional services or founders to cover the rest
• Delay system implementations unless absolutely necessary

$1–5M ARR

• Build in-house capacity slowly, and only with leverage
• Adopt tools that automate headcount—not ones that just organize it
• Consolidate systems (payroll, HRIS, GL) into unified platforms

$5–20M ARR

• Review all contracts quarterly
• Assign G&A category owners (Finance, Legal, HR, IT)
• Invest in internal reporting and budget accountability

$20M+ ARR

• Scale with precision: every back-office dollar should support growth or reduce friction
• Conduct regular G&A audits tied to ARR growth—not just budget season
• Automate everything reasonable—AP, close process, benefits admin, procurement

Five Moves You Can Make This Quarter

Want to improve your G&A profile this quarter without slowing down your business?

Start here:

• Run a G&A accountability map: Who owns what, and what’s the total cost per function?
• Audit your tech stack: Eliminate tools with under 30% utilization
• Freeze non-revenue headcount unless tied to a clear ARR threshold
• Benchmark your spend against peers using ARR-normalized data
• Launch a monthly G&A flash review with KPIs and commentary

What the Data Is Telling Us in 2025

A recent dataset from Benchmarkit.ai showed:

• The median G&A spend across all ARR bands is 16.2%
• Top quartile companies hold it under 12%
• Bottom quartile spend over 24%

What’s most striking:
Companies in the bottom quartile aren’t necessarily more complex—they’re just under-managed in back office structure.

So if your G&A is over 20% at $10M+ ARR, don’t panic.
But do get proactive.

Final Takeaway

The new rule in 2025 isn’t “cut G&A.”
It’s: align it.

If your back office is scaling faster than your revenue, you’re not getting leverage—you’re just getting busier.

And leverage is the name of the game now. Boards are watching. Investors are modeling it. And your competitors? They’re quietly trimming fat and re-routing that cash toward product, sales, and retention.

So benchmark your G&A. Build with intention. And if you’re not sure where to start—we’re here to help.

Contact Us

We’re currently offering a free G&A scorecard review for SaaS companies between $1M and $50M ARR.

We’ll benchmark your spend, highlight your biggest leverage points, and show you how to reframe G&A from a cost center into a strategic asset.

Reach out to set up a quick call—we’ll make it worth your time.