What are the Big 4 accounting firms?
If you ask any freshly qualified Chartered Accountant or a commerce student where they want to start their career, often you will hear the name “Big 4”.
But what is this Big 4? And why do they have such relevance in India and the world over?
“Big 4” is the nickname that has been given to the world’s four largest accounting and auditing firms by revenue. They are Deloitte, Ernst & Young (EY), Klynveld Peat Marwick Goerdeler (KPMG), and PricewaterhouseCoopers (PwC).
The Big 4 provides various services such as accounting, auditing, taxation, strategy, management consultation, valuations, market research, assurance, legal advisory, etc.
They serve some of the major companies, as well as many Fortune 500 companies in the world.
The Big 4 expanded in India after the inception of India’s professional accounting body ICAI (Institute of chartered accountants of India ).
Chartered Accountancy, Company Secretary, and Chartered Management Accounting students try hard to get into these firms for articleship, as these firms provide a better industry experience and knowledge.
Here is a little backstory about the firms.
The Founding of Deloitte
William Welch Deloitte established Deloitte in 1845. It continued its business and expanded worldwide.
In 1972, it merged with Haskins & Sells to establish Deloitte Haskins & Sells. In 1989, it combined with Touche Ross in the United States to form Deloitte & Touche.
The multinational firm was renamed Deloitte Touche Tohmatsu In 1993, which was eventually changed to Deloitte.
The corporation partnered with numerous other organizations to scale up its businesses, ultimately, becoming a part of the Big Four.
Deloitte currently operates in more than 150 countries, including India. The organization stands at a significant place in India as it accounts for 30% market share.
Given its sheer size and scalability it is reasonable to say that it employs a large number of people. As of 2022, it has more than 412,000 members worldwide, of which approximately 15,000 are part of its offices in India.
PwC: A Brief History
PwC was created by the merger of Coopers & Lybrand, and Price Waterhouse. Both accounting firms originated in London during the mid-1800s.
Currently, Pwc India has offices in Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune, and Raipur. Sanjeev Krishnan is the Chairperson of PwC India
PwC is the second biggest professional services network in the world (second only to Deloitte).
They earned annual revenue of more than $50 billion in 2022. PwC has a presence in more than 150 countries and over 280000 employees worldwide.
The History of KPMG
KPMG is a leading global professional services provider which offers services such as advisory services, government infrastructure, tax services, services for international mobility, healthcare, and digital consultation to its clients.
Just like PwC, KPMG was also formed after the merger of multiple firms in 1987. Peat Marwick International and Klynveld Main Goerdeler merged along with their respective member firms to form KPMG.
KPMG has a humongous workforce of more than 200,000 employees worldwide. The organization succeeded in making more than $45 billion in revenue in 2022.
It has a presence in more than 150 countries. It also has 22 locations in India. In 2022 Yezdi Nagporewalla was appointed as the CEO of KPMG India.
According to some reports, KPMG holds a 19% market share in India and employs around 12000 professionals in India.
How did Ernst and Young start?
Just like the other two of the big fours namely Pwc and KPMG, E&Y was also formed by a merger.
In 1989 two sizable accounting & auditing firms Ernst & Whinney and Arthur Young & Co. merged, giving rise to the entity’s current shape.
E&Y is one of the biggest firms in terms of workforce and revenues. It has over 300,000 employees worldwide and earned over 40 billion dollars in revenue in 2022.
They operate in more than 150 countries and have offices in 13 cities in India. According to reports E&Y has a market share of 24% in India.
Rajiv Memani is the current CEO of E&Y India.
FAQ
Q) 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.
Q. 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
Q. 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
Q. What are the pros and cons of working at the big 4?
You can watch this video to get an idea. https://www.youtube.com/watch?v=cdL9UDJ6_Iw
