Have you ever thought of the top four accounting firms in the world? If not, then we will take you through the top accounting firms, also referred to as Big 4, that every accounting background student wishes to work for. Working for one of the Big Four firms is a great way to advance your career.
The term “Big 4” refers to the world’s four largest professional services networks, which include Deloitte, Ernst & Young, KPMG, and PwC.
Each of the Big Four accounting firms provides their clients with high-quality audit, taxation, management, consulting, actuarial, corporate finance, and legal services.
These four networks conduct the vast majority of audits of public companies, as well as a significant number of audits of private companies.
In actuality, there were eight firms, but due to mergers, acquisitions, and dissolutions dating back to 1987, only four large firms remained by 2002. They have combined earnings of more than $100 billion and have experienced year-over-year growth.
Let us now learn about the top 4 accounting firms in the world.
Top 4 Accounting firms: A Brief Overview
The top 4 accounting firms in nyc and all over the world include the following:
Deloitte Touche Tohmatsu or Deloitte was founded in the year 1845 by William Deloitte. It went through a number of mergers and reorganizations but retained its brand name, as well as its quality standards and company values. It has now emerged as one of the world’s most successful brands.
In terms of revenue, they have been ranked as the number one accounting firm in nyc with a revenue of $43.2 billion in the year 2018.
Moreover, in the year 2019, they earned a total revenue of $43.2 billion and since then there is no looking back.
Pricewaterhouse Coopers (PwC)
Pricewaterhouse Coopers, or PwC, arose from the merger of two well-known accounting firms, Price Waterhouse and Coopers & Lybrand. Both of these companies decided to merge in 1998 and committed to providing quality service while establishing and maintaining good customer relations. They employ more than 284,000 professionals in 157 countries around the world. PwC provides excellent assurance, consulting, and tax services to its clients.
In terms of revenue, they have been ranked as the number two accounting firms in nyc with a revenue of $40.7 billion in the year 2018.
Moreover, in the year 2019, they earned a total revenue of $42.4 billion. However, this puts them behind the total revenue of Deloitte.
Ernst & Young (E&Y)
Ernst & Whinney and Arthur Young merged in 1989 to form Ernst & Young, or E&Y, which provides professional services as well as values like integrity, respect, teamwork, enthusiasm, and motivation. Thus, they form the core values of Ernst & Young.
The organization also prioritizes knowledge and skill development, assisting approximately 299,000 employees in reaching their full potential through professional training and career development programs.
In terms of revenue, they have been ranked as the number three accounting firms with a revenue of $34.8 billion in the year 2018.
Moreover, in the year 2019, they earned a total revenue of $36.4 billion. Therefore, they are ranked as number three as they are behind Deloitte and PwC.
Klynveld Peat Marwick Goerdeler (KPMG)
Klynveld Peat Marwick Goerdeler, also known as KPMG, is a global network of accounting firms in nyc that provides audit, tax advisory, special interest, and industry-specific services. They employ approximately 227,000 professionals who work collaboratively to provide quality service in 154 countries worldwide.
Peat Marwick International and Klynveld Main Goerdeler merged to form the organization in 1987. KPMG, like other professional service organizations, places a high value on its people and the quality of its services.
In terms of revenue, they have been ranked as the number four accounting firms with a revenue of $28.96 billion in the year 2018.
Moreover, in the year 2019, they earned a total revenue of $29.75 billion. With 219,000 employees, they are the smallest of the big four.
Following a brief overview of the top four accounting firms, let us look at the average salaries that every CPA or accounting graduate can expect from these top accounting firms.
Read More: Cost to Hire an Accountant
Benefits of Big 4 over Small firms
Despite the well-known condition of working long hours at large accounting firms, the benefits far outweigh the drawbacks. These advantages are difficult to find outside of a Big 4 accounting firm, but they begin with name recognition and exposure.
The Big four provide instant credibility to any accounting professional, regardless of level. Whether professionals leave to work for smaller firms or to lead corporate finance departments, the respect that comes with working with the Big 4 is unparalleled.
Average Salaries Offered by the Big 4 firms
Big 4 accounting salary expectations are high. Salaries for the top four accountants, on the other hand, vary greatly depending on education, experience, and organization.
With at least two years of experience, the starting CPA salary nyc is $50,000, rising to $500K with career advancement and job changes.
Furthermore, the Big 4 provides benefits that most companies do not, such as extended vacation time, gym memberships, etc.
The top four accounting firms mentioned above are the best in the industry in terms of quality service, accounting, finance, taxation, and many other areas. We have clearly stated in this article, why every accounting graduate wants to work for one of the big four firms for career advancement.