Big 4 accounting firms: ranking, revenue, and salary

Deloitte has several recruiting teams that visit college campuses across the country, hoping to recruit those who have taken classes involved in their partnership program. Some of the universities that have these programs are Columbia Business School and Duke University. In 2018 the firm reported an astonishing $35.2 billion in revenue, the company has continued to grow over the past four years on average 7%, even with the recession. In many cases, each member firm practices in a single country, and is structured to comply with the regulatory environment in that country. KPMG History – The earliest founding date for a member firm of KPMG was in 1891.

• They also provide internship opportunities, which can help students gain valuable insights into the accounting profession.
• It has about 365,000 employees and generated $45.4 billion in revenue in 2022.
• My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, so students and professionals can learn and propel their careers.
• Explore the different roles in accounting firms with Forage’s free job simulations.

EY has developed a highly technical and advanced tax accounting and reporting program for accounting professionals. It consists of three different courses starting with the basics of tax law and ending with advanced income tax compliance. They courses are held at different EY locations around the country. PwC actively recruits college students across the country into their student programs.

Founded by William Welch Deloitte in London in 1845, Deloitte expanded its operations into the United States in 1890. In 1993, the international firm was renamed Deloitte Touche Tohmatsu, which accounting for startups the ultimate startup accounting guide was later shortened to Deloitte. The firm further expanded in 2002 through a merger with Arthur Andersen’s practice in the UK and several practices in Europe, North America, and South America.

Big Four merger history

In fact, the vast majority of Fortune 500 companies have their financial statements audited by one of the Big Four. The “Big Four” is the nickname for the four largest accounting firms in the United States, as measured by revenue. They are Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG). In addition, the Big 4 firms provide a variety of other financial services, such as assisting with M&A, preparing tax returns, developing risk management strategies, providing legal advice and more.

In simple terms, they were paid to improve the profitability of clients, while also being responsible for auditing the financial records of those clients. The Big 4 have faced scrutiny for tax avoidance, and for conflicts of interest between their auditing and consulting businesses over the past few decades. Currently, PWC is considered the #1 most prestigious accounting firm, according to The Vault, and is the 5th largest private company in the U.S. They see themselves as long-term partners with their clients across all areas of their business and KPMG want their employees to be proud of the work they do.

If you are going to work at the big 4, obtaining a big 4 internship is key. You will need to focus on getting this position while you are in school though. After getting some practice on your own, you should find someone who can do a mock interview with you, like a friend or family member. Practising by yourself is a great way to get started, and can help you get more comfortable with the flow of a case interview. However, this type of practice won’t prepare you for realistic interview conditions. Sure, there is a minimum number of hours you need to put-in, to develop good case interview habits (probably ~30h+).

They were sued by banks, investors, and other companies to recoup their losses and eventually had to disband. Many of the Andersen locations and clients were acquired by the remaining big four accounting firms. Deloitte University was formed in 2012 as an educational branch to provide current employees and future hires training in all areas of public accounting including tax, assurance, and advisory. Their tax and assurance service sectors have remained about the same year of year, but their advisory and consulting business keeps growing year after year.

KPMG

EY focuses on hiring a larger percentage of their interns because it works. They can train students and test them out for a trial run during the internship. After they are fully trained and graduate college, they become full time team members.

They have invested in advanced technologies and data analytics to enhance the effectiveness and efficiency of their audits. These accounting firms have also bolstered training and professional development programs to ensure their teams possess the necessary skills and knowledge to navigate complex financial landscapes. Additionally, they have embraced stricter governance and risk management practices to strengthen independence, maintain quality, and uphold the highest professional standards. The top accounting firms include members of the Big Four firms, like Deloitte and KPMG, and smaller accounting networks, like BDO and Grant Thornton. These accounting firms offer a range of accounting, auditing, and professional services to clients of all sizes. Using revenue data from the 2022 fiscal year, we’ve determined the top 10 accounting firms.

Audit firms fight to block expansion of fraud detection role

These challenges have compelled the Big 4 firms to continually adapt and improve their practices to meet evolving regulatory expectations and maintain public trust. The global reach and influence of the Big 4 accounting firms, namely Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG, cannot be overstated. These industry giants have built an extensive network of member firms operating in numerous countries, allowing them to serve clients on a global scale. With an unwavering commitment to client success, a global footprint, and an innovative mindset, EY continues to redefine the boundaries of professional services. It has since built these practices back up in a similar fashion to the other big four firms and offers a full range of professional services.

The firm was originally established in 1911 when William Barclay Peat & co. merged with Marwick Mitchell & Co. to form Peat Marwick. Ernst & Young is rated number three out of the top 100 accounting firms in the world. The firm was formed by the merger of two companies, Arthur Young & company and Ernst & Ernst. Interestingly enough Arthur Young and Alwen Ernst never met in life. The big five accounting firms only lasted another four years until 2002 when Arthur Andersen became caught in the Enron accounting scandal. AA’s image for integrity was severely damaged due to the negligence and securities fraud committed by Enron.

This distinction reflects EY’s unwavering commitment to nurturing a positive work environment and empowering its talented professionals. Rooted in a rich history that dates back to the 19th century, PwC’s establishment in its current form can be attributed to the merger of Coopers & Lybrand and Price Waterhouse in 1998. This strategic combination brought together decades of expertise and experience, creating a powerhouse capable of delivering exceptional services to clients across various sectors. I worked hard to earn a master’s degree, and I parlayed that into a fantastic offer from a big accounting firm. It’s the route many tax and accounting experts spend years dreaming about, but I discovered that, while it’s a great fit for some people, it wasn’t the right fit for me. I kept working really long hours and couldn’t have the work-life balance I wanted.

History of mergers

In addition to performing audits and other assurance services, the Big 4 provide tax advising and various management services. These certified public accounting (CPA) firms perform a majority of the audits required of U.S. corporations having stock that is publicly traded. In the 1980s the Big Eight, each with global branding, adopted modern marketing and grew rapidly. In 1987, Peat Marwick merged with the Klynveld Main Goerdeler group to become KPMG Peat Marwick, later known simply as KPMG. Note that this was not the result of a merger between any of the Big Eight.

They don’t want to you to be a hermit who just studies all day long. They want you to be able to gain knowledge and experiences to help their clients and grow their practices. The best way to do that is to be well rounded and work on your communication skills. KPMG is the fourth largest big four accounting firm employing 162,000 people.

Company Profiles: KPMG, PwC, EY, and Deloitte

This goes for academics, extra circular actives, and professional experience. Remember, these firms know how good they are and know that thousands of people are fighting to work for them. They focus on getting to know students early in their college careers with programs designed for each class year. They focus on helping students gain access to their leadership training series, internships, and competitions. You can go to the student section on their site for more information about finding a KPMG recruiting rep for your university. As you can see, PwC has maintained steady revenue growth for the past three years.

The themes that are common to all four firms are low pay and long hours. In the professional services world, it is very common to work 12 hours + days, 5 days a week. For the audit teams, this is compensated for in part by the sponsoring of exams which cost tens of thousands alone. PwC has always strived to work with the biggest and most established firms in the world.

In 2002, D&T merged most of the European and South American Arthur Andersen consulting business into their other foreign consulting businesses. Over the last few decades Deloitte’s presence in the industry and total revenues have grown drastically. Deloitte is almost always ranked in the top 100 best companies to work for in Fortune Magazine. Despite all its resources and inside access to companies, these giants have not been the ones to uncover massive frauds perpetrated by clients that have caused pain for shareholders and investors.

• Deloitte has also been involved in sponsoring various activities and events, including the 2012 Summer Olympics.
• The rapid advancement of technology, including artificial intelligence (AI), blockchain, and automation, promises to reshape the profession, opening new avenues for efficiency and innovation.
• Offering an extensive array of services, including assurance, tax, consulting, and advisory, EY serves as a catalyst for its clients’ growth and prosperity.
• Synder goes above and beyond by offering smart automated software to streamline and optimize your bookkeeping processes.
• In 2002, D&T merged most of the European and South American Arthur Andersen consulting business into their other foreign consulting businesses.
• These challenges have compelled the Big 4 firms to continually adapt and improve their practices to meet evolving regulatory expectations and maintain public trust.

The Big 4 firms will need to embrace technological advancements, adapt to changing client expectations, and nurture talent to remain at the forefront of the industry. By doing so, they can continue to drive innovation, shape the future of accounting, and deliver exceptional value to clients in an ever-evolving business landscape. The Big 4 accounting firms are poised to leave a lasting impact on the global business landscape, guiding the financial industry towards a future of growth, integrity, and excellence.