The Big 4 accounting firms are the world's four biggest accounting firms. Audit, taxation, management and business consulting, mergers and acquisitions, and risk evaluation and control are just a few of the services offered by these companies.
The Big 4 Accounting Firms
The big 4 accounting firms are Deloitte, PwC, Ernst & Young, and KPMG. They have their headquarters in the United States and offices in almost every country.
1. Deloitte Touche Tohmatsu Limited
Deloitte Touche Tohmatsu, or simply "Deloitte," was founded in 1845 by William Deloitte. It underwent a succession of mergers and reorganizations, but its brand identity, as well as its quality standards and company principles, remained intact. It has now become one of the world's most successful brands.
It made $47.6 billion in 2020 and has nearly 335,000 staff – the most of the Big 4 – in more than 150 countries, displaying competence in audit, consultancy, financial advising, risk management, and tax services to customers throughout the world. Visit the Deloitte website for further information.
2. PricewaterhouseCoopers (PwC)
PwC is the second largest accounting firm in revenue, with $43 billion in 2020. It has around 284,000 employees working for it in 157 countries. Price Waterhouse and Coopers & Lybrand merged to establish Price Waterhouse Coopers. In 1998, the two agreed to merge and commit to providing high-quality services while creating and sustaining client relationships.
PwC has offices in different countries across the world. Like other worldwide companies, these independently owned and managed businesses share common principles and standards. PwC is a professional services firm specializing in assurance, consulting, and tax. Check out PWC's website.
3. Ernst & Young (E&Y)
In 1989, Ernst & Whinney and Arthur Young merged to form Ernst & Young. The accounting firm is a global organization with 150 member firms. It hires professionals with talents and values such as integrity, respect, teamwork, passion, and motivation.
Knowledge and skill development are also crucial to the company, with professional training and career progression programs helping roughly 299,000 people reach their full potential. Ernst & Young is a professional services firm that provides assurance, advising, tax, and specialty services. In 2020, Ernst & Young earned $37.2 billion. See the E&Y website for further information.
4. Klynveld Peat Marwick Goerdeler (KPMG)
KPMG is a global accounting network that offers audit, tax, advice, and industry-specific services. In 154 countries, it employs roughly 227,000 experts who work together to deliver exceptional service. In 2020, KPMG made $29.2 billion.
Peat Marwick International and Klynveld Main Goerdeler (KMG) merged in 1987 to establish KPMG. KMPG, like other professional service firms, places a premium on its people and service excellence. Visit the KPMG website for further information.
Some Historical Facts About The Big 4 Accounting Firms
The Big 4 accounting firms were formerly known as the big 8, which included (1) Arthur Andersen, (2) Arthur Young & Co., (3) Coopers & Lybrand, (4) Ernst & Whinney, (5) Deloitte, Haskins & Sells, (6) KPMG, (7) Touche Ross, and (8) Price Waterhouse. The elite four was formed with a series of mergers and dissolutions.
The Big 8 was reduced to the Big 6 in 1989 after two mergers. Deloitte, Haskins & Sells merged with Touche Ross to form Deloitte Touche, while Ernst & Whinney merged with Arthur Young to form Ernst & Young. Price Waterhouse then merged with Coopers & Lybrand in 1998 to establish PricewaterhouseCoopers or PwC. It whittled the group down to the Big 5.
Due to Arthur Andersen's role in the world-shocking Enron crisis, the five were reduced by one in 2002. Since then, the four largest existing accounting firms have been referred to as the big 4.
Next To The Big 4: Who comes after the Big 4?
Following the Big 4, BDO is the 5th largest accounting firm, with 91,000 employees in over 150 countries and a revenue of $10.3 billion in 2020. In 2020, RSM International's revenues increased to $6.3 billion. With 58,000 employees in 135 countries, Grant Thornton generated $5.8 billion in revenue. Crowe Global, meanwhile, made $4.4 billion through its network of 200 companies in 146 countries.
The Big 4 accountancy firms are the world's four largest in revenue and staff today. They offer professional services through a worldwide network of independent member firms. Deloitte, PwC, Ernst & Young, and KPMG are among the Big 4. BDO, RSM, Grant Thornton, and Crowe are the firms next to them.