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Big Four is a term used to refer to the world’s largest accounting firms in terms of revenue and number of employees. Auditing, management, market research, valuation, tax consulting, insurance and legal consulting are some of the services provided by these companies. Learning more about these companies can help you determine their quality standards and understand what makes them leaders in the financial services industry. In this article, we discuss what the Big 4 accounting firms are, share their revenue sources, and look at some of the skills you may need when working with these firms.
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Who are the Big 4?
The Big 4 refers to four major accounting firms: PwC, EY, Deloitte and KPMG. These firms are leaders in the accounting industry with services including audit, tax, risk, consulting, and more. They work in many different fields and are recognized worldwide. Every company has its own area of expertise and culture.
PwC has a strong and established client base. In 2022, PwC’s annual revenue exceeds $50 billion and employs approximately 328,000 people. PwC’s strength lies in auditing and the company strives to diversify its staff.
Deloitte is the largest of the four companies in terms of revenue and workforce. The company has revenue of more than $59 billion in 2022 and employs about 334,800 people. Deloitte is known for its consulting expertise, a focus that has created corporate culture.
KPMG employs more than 265,000 people worldwide and has revenues of approximately $34 billion by 2022. KPMG is known for its excellent employee development, offering a variety of apprenticeship programs with a track record of success and key qualifications above industry standards. The culture at KPMG is fresher than elsewhere in the Big 4, with less pressure to adapt to the lifestyle of an urban graduate. KPMG is notoriously more European-based than the rest of the Big 4 and spreads its activities across different areas of accounting.
EY is the newest member of the Big 4, with more than $45 billion in revenue. EY has a large workforce of around 400,000 people and is renowned for its diversity. The company’s track record in advancing women and history of supporting LGBTQIA+ rights demonstrate the company’s inclusive nature and values-driven culture. EY is also an industry innovator by moving into technology consulting.
The Founding of Deloitte
William Welch Deloitte founded Deloitte in 1845. The company continues to operate and expand around the world. In 1972, it merged with Haskins & Sells to create Deloitte Haskins & Sells.
In 1989, the company partnered with Touche Ross in the United States to form Deloitte & Touche. The multinational was renamed Deloitte Touche Tohmatsu in 1993, eventually becoming Deloitte.
The company partnered with many other organizations to expand its business and eventually became part of the Big Four. Deloitte currently operates in more than 150 countries, including India.
This organization occupies an important position in India with a 30% market share. Given its size and scalability, it can be said that it employs a large number of people. As of 2022, it has more than 412,000 members worldwide, of which about 15,000 have offices in India.
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A brief History of PwC
PwC was formed from the merger of Coopers & Lybrand and Price Waterhouse. Both accounting firms were headquartered in London in the mid-1800s.
Pwc India’s presence can be found in Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune and Raipur. Other locations are also available.
Sanjeev Krishnan is Chairman of PwC India PwC is the second largest professional services network in the world (after Deloitte). They generate annual revenue of more than $50 billion by 2022. PwC operates in more than 150 countries and has more than 280,000 employees worldwide.
The History of KPMG
KPMG is a leading global professional services provider, providing clients with services such as consulting services, government infrastructure, tax services, international mobility, healthcare and digital consulting service. Like PwC, KPMG was also formed after the merger of several firms in 1987.
The merger of Peat Marwick International and Klynveld Main Goerdeler firms resulted in the formation of KPMG, a new company. KPMG has a large workforce of more than 200,000 employees worldwide.
The organization is set to achieve more than $45 billion in revenue by 2022. It is available in more than 150 countries. It also has 22 locations in India.
In 2022, Yezdi Nagporewalla was appointed as the Managing Director of KPMG India. According to some reports, KPMG has a market share of 19% in India and employs around 12,000 professionals in India.
The Beginning Of Ernst & Young
Like the other two giants, Pwc and KPMG, E&Y is also the result of a merger. In 1989, two major accounting and auditing firms, Ernst & Whinney and Arthur Young & Co., merged, creating the entity’s current form.
E&Y is one of the largest companies in terms of number of employees and revenue. It has more than 300,000 employees worldwide and has revenues of more than $40 billion by 2022. They operate in more than 150 countries and have offices in 13 cities in India.
According to the report, E&Y has a market share of 24% in India. Rajiv Memani is the current CEO of E&Y India.
What jobs can you do in the Big 4?
1: Accounting provides information on
There are many roles available across different large companies. Some of the main areas of recruitment are:
Auditing
Auditing involves examining the accounts of an organization to ensure the accuracy of financial statements.
Consulting
Consultants provide expert advice to clients on various aspects of their business, to help them improve their performance.
Transaction consulting
Transaction consulting is a step in the merger and acquisition process that allows the buyer to clarify the performance of the target company.
Tax
Companies that advise clients on taxes, helping them prepare tax returns and pay taxes.
What are the Big 4 looking four in candidates?
Positions at the big four accounting firms are very competitive. For this reason, each company has a strict registration process.
While there are differences in each company’s process, the overall goal is the same: Evaluate whether you’re a good fit for the company and narrow down the large pool of candidates.
Applications are not intended to assess your skills in the more technical aspects of your role. Instead, they will evaluate whether you have the right characteristics and qualities.
The Big 4 are also investing in diversifying their workforces. This has led to an evaluation process based on personality rather than experience.
Some companies have also reduced educational requirements to attract more diverse candidates. The Big 4 are primarily looking for excellent communicators and good team players. You will need to be able to demonstrate leadership potential, enthusiasm and courage.
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Conclusion
The tips we’ve discussed here will guide you through finding a job at the big four accounting firms. Getting a job at Big 4 companies is difficult but not impossible. Enrollment in the Association of Chartered Certified Accountants (ACCA) and Chartered Financial Analyst (CFA) programs from a reputable institute or college and achieving a minimum GPA Minimum 3.0 is a solid foundation. Entri Apps offers practical accounting programs for interested accountants.
Frequently Asked Questions
Is it hard to get into the Big 4?
Getting a job at one of the Big Four firms is challenging, but not impossible. Attend your college/institution’s recruitment programme and search for representatives from these companies. It may lead to a lucrative opportunity.
CAs who are ICAI-qualified and pass their exams on the first try have an added advantage when it comes to getting recruited by the BIg 4.
What is the average salary of accountants at the Big 4?
As per Indeed an Accountant at the Big 4 gets an average salary of,
Deloitte – $66,391 per year
EY – $37,836 per year
PwC – $54,774 per year
KPMG – $30,000 per year
What does the hierarchy at the Big 4 look like?
Deloitte:
- Analyst / Associate
- Consultant
- Senior Consultant
- Manager
- Associate Director (formerly Senior Manager)
- Director/Partner
E&Y
- Analyst
- Senior Associate
- Senior Consultant
- Manager
- Senior Manager
- Director
KPMG
- Analyst
- Associate
- Senior Consultant
- Manager
- Director
- Partner
PwC
- Analyst
- Associate
- Senior Associate
- Manager / Senior Manager
- Director
- Partner
