What Is the "Big Four"?
Measured by revenue, the Big Four global accounting firms include Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG). The companies provide auditing services, tax, strategy and management consulting, valuation,market research, assurance, and legal advisory services. All four are leading sources of tax law interpretation and accounting and auditing standards.
Key Takeaways
- The "Big Four" refers to the four largest accounting firms in the U.S.
- Four firms audit the financial statements of the majority of publicly held companies.
- The Big Four provide auditing, tax, consulting, valuation, market research, assurance, and legal advisory services.
1. Deloitte
The largest of the Big Four, Deloitte's workforce grew to over 457,000 employees during their 2023 fiscal year. The company's annual revenue was $64.9 billion. Deloitte operates in 150 countries and ranked the sixth-best workplace in 2023.
2. PwC
In 2023, PwC reported an annual revenue of $53.1 billion, the second-highest amount for Big Four firms. PwC also added 36,000 more jobs during the year, boosting its workforce to more than 364,000 in 152 countries.The company made a $3.7 billion investment in talent and business acquisitions to grow its expertise in cloud and technology consulting and scale its artificial intelligence capabilities.
3. EY
For FY 2023, Ernst & Young reported roughly $49.9 billion of company-wide revenue. The company rolled out an artificial intelligence platform and an AI assistant with a language model capable of conversing with users to assist with creating ideas and research in 2023. The firm operates in 150 countries.
4. KPMG
In 2023, KPMG reported the equivalent of $36 billion of revenue with strong growth across multiple divisions. KPMG employs over 273,000 individuals globally, has an office in every state across the U.S., and operates in 143 countries.
| 2023 Annual Revenue in U.S. Dollars | # of Employees | # of Countries of Operation/Headquarters | |
|---|---|---|---|
| Deloitte | $64.9 billion | 457,000 | 150/London, UK |
| PwC | $53.1 billion | 364,000 | 152/New York City, U.S. |
| EY | $49.9 billion | 395,442 | 150/London, UK |
| KPMG | $36 billion | 273,000 | 143/Amstelveen, Netherlands |
History of the Big Four
Through industry consolidation that began in 1989, what used to be the Big Eight is the Big Four in 2024. The original eight, based in the U.S. or the U.K., included Arthur Andersen, Arthur Young, Coopers & Lybrand, Deloitte Haskin & Sells, Ernst & Whinney, Peat Marwick Mitchell, Price Waterhouse, and Touche Ross.
Arthur Young combined with Ernst & Whinney, while Deloitte Haskin & Sells merged with Touche Ross. Price Waterhouse and Coopers & Lybrand merged their practices. Following the collapse of Arthur Andersen, due to its proven culpability in theEnron scandal, the five became four.The Big Four performs most of the auditing work for some of the largest public companies.
In 2022, the Big Four constituted 99.7% of the S&P 500 market, dominating the audit fee market share.PwC led with 35.7%, according to data compiled by Ideagen.
In 2002, "Big Eight" firm Arthur Andersen was discovered to have shredded documentation in an effort to hide Enron's falsified financial numbers. One of the largest and most reputable firms at the time, it ultimately collapsed due to the scandal.
Big Four Salaries
| Deloitte | PwC | EY | KPMG | |
| Tax Analyst | $72,176 | $74,041 | $50,242 | $76,509 |
| Accountant | $70,691 | $62,737 | $85,478 | $80,896 |
| Certified Public Accountant | $88,300 | $90,380 | $80,641 | $84,066 |
| Auditor | $76,637 | $77,573 | $74,117 | $67,216 |
| Business Analyst | $84,836 | $68,049 | $64,295 | $40,431 |
| Cybersecurity/IT Analyst | $94,077 | $96,000 | $88,172 | $114,678 |
What Services Do Big Four Companies Provide?
Big Four firms provide audit, assurance, consulting, financial advisory, risk management, and tax compliance services. Each firm also assists with mergers, acquisitions, corporate restructurings, and forensic accounting.
What Is Busy Season Like at a Big Four Company?
The busy season typically means long hours of auditing or tax compliance work to meet reporting deadlines. Big Four employees often work long hours during the busy season, sometimes doubling the hours worked during the off-season. The busy season typically begins at the start of the calendar year with tax reports and returns due between January and April. Big Four firms are also busy during periods when companies report quarterly or yearly earnings.
What Is the Difference Between an Accountant and a CPA?
An accountant is a professional with a bachelor’s degree in accounting. A CPA, or Certified Public Accountant, is a professional who has earned a CPA license through education, experience, and examination.
The Bottom Line
The "Big 4" refers to the four largest accounting firms and includes Deloitte, PwC, KPMG, and EY. All four companies provide audit, assurance, consulting, financial advisory, risk management, and tax compliance services.
