It is challenging for most accounting firms to consistently deliver top-tier services and maintain a prestigious reputation.
However, exploring benchmarks of excellence can reveal insights into the leading accounting firms that define quality and expertise in the industry.
This article will analyze the elite Big 4 firms as well as prominent contenders, showcasing their core strengths across service areas, talent, technology, clients, and more to highlight what propels the top performers.
The Pinnacle of Accounting Excellence
The accounting industry is home to many prestigious firms that demonstrate excellence through their high-quality services, robust expertise, and stellar reputation.
As leaders in the field, the top performers set the benchmark for best practices and gold standards in areas like audit, tax, advisory, and beyond. They wield extensive knowledge across industries to deliver immense value to clients of all sizes. Factors like revenue, global reach, service spectrum, workplace culture, and industry impact contribute to firms' standings.
By examining these dimensions of quality, we unveil the capabilities, influence, and esteem that characterize the cream of the crop. These insights spotlight accounting powerhouses making an indelible impact in corporate America and beyond. Understanding the upper echelon provides an insider perspective into the capabilities that enable the leading lights to guide enterprises to new heights.
Who are the Big 4 accounting firms?
The Big 4 accounting firms refer to Deloitte, EY (Ernst & Young), PwC (PricewaterhouseCoopers), and KPMG (Klynveld Peat Marwick Goerdeler). They are considered the top accounting firms in the world and leaders in the industry, offering a wide range of services beyond auditing such as tax, consulting, assurance, strategy, transactions, legal advisory, and more.
Key Points About the Big 4 Firms:
- They audit most of the public companies and large private corporations globally. Over 75% of the companies listed on stock exchanges are audited by the Big 4.
- These firms have a large global presence with networks across 150+ countries and employ hundreds of thousands of professionals worldwide.
- Aside from scale and brand value, they are distinguished by their investment in technology, focus on talent development, and experience servicing complex client needs.
- The Big 4 firms combined generate over $150 billion in annual revenue globally.
So in summary, Deloitte, EY, PwC, and KPMG make up the prestigious Big 4 accounting firms that lead the industry with their expertise, global reach, comprehensive service capabilities, and reputation with enterprises and governments worldwide. Their standards of quality and professionalism make them the top choices for organizations seeking accounting, auditing, advisory, tax, and consulting services.
Which Big 4 is most prestigious?
A QUICK OVERVIEW OF THE FIRMS PwC is the largest by revenue and the most prestigious of the Big Four with a strong and established audit client base. Deloitte is just a fraction smaller than PwC in terms of revenue. Both firms have a balanced portfolio of services.
PwC
PwC is considered the most prestigious due to its position as the largest professional services firm in the world by revenue. Some key facts about PwC:
- Generates over $43 billion in annual revenue
- Employs over 295,000 people across 157 countries
- Provides assurance, advisory, tax, and legal services
- Audits 424 companies in the Fortune Global 500
- Known for its strong audit and assurance practice
PwC has a long-standing reputation for audit quality and integrity spanning over 100 years. They service 82% of the Fortune Global 500 companies and 424 of the Fortune 500 companies. Their global footprint, expertise across industries, and talent pool make them a highly prestigious firm.
Deloitte
Deloitte is the 2nd largest professional services network just behind PwC in terms of revenue. Key aspects:
- Annual revenue over $50 billion
- Employs over 345,000 professionals globally
- Leader in audit and assurance, consulting, risk advisory, tax and legal services
While slightly behind PwC in size, Deloitte matches PwC in many regards - global reach, service capabilities, talent pool, Fortune 500 clientele, and brand equity. Deloitte audits more Fortune 500 companies than the rest of the Big Four. Similar to PwC, Deloitte is held in very high esteem.
In summary, while the Big Four firms have slightly different strengths, PwC edges out as the most prestigious by a small margin over Deloitte based on its long history, global footprint, Fortune 500 client base, and position as the clear market leader. However, all Big Four firms command immense respect and prestige in the marketplace.
Was there a big 5 accounting firm?
The Big 5 accounting firms emerged in the late 1990s after the Big 6 merged into what is now known as PricewaterhouseCoopers (PwC).
Originally, there were 8 major accounting firms that audited most major public companies. However, a series of mergers in the 1980s and 1990s led to the consolidation of the "Big 8" into the "Big 6" firms.
History of the Big 4 accounting firms
In the late 1990s, the Big 6 became the Big 5 when Price Waterhouse merged with Coopers and Lybrand to form PricewaterhouseCoopers (later stylised as PwC).
Five became four in 2002 after the dissolution of Arthur Andersen. This occurred due to the firm's involvement in the Enron scandal, which eroded confidence in the company's ability to conduct independent audits.
The remaining Big 4 accounting firms today are:
- Deloitte
- PwC
- Ernst & Young
- KPMG
These firms handle the vast majority of audits for public companies and Fortune 500 corporations in the United States. Their scale, expertise, and reputation make them the cream of the crop in the accounting industry.
What are the top 4 public accounting firms?
The "Big Four" accounting firms dominate the public accounting landscape in the U.S. These firms consistently rank as top service providers due to their expertise, resources, and reputation. They include:
- Deloitte - The largest professional services network in the world, delivering audit, consulting, tax, and advisory services. Known for its prestigious leadership development and emphasis on innovation.
- PricewaterhouseCoopers (PwC) - A multinational network providing assurance, advisory, and tax services. Offers clients industry-focused solutions powered by technology and tailored expertise.
- Ernst & Young (EY) - A global leader in assurance, tax, strategy, transaction and consulting services. Focuses on leveraging data analytics, AI, blockchain and other emerging technologies.
- KPMG - Global network of professional services firms providing audit, tax and advisory services. Empowers clients with deep industry knowledge and insight to address complex business challenges.
These "Big Four" firms handle over three-quarters of public company audits because of their vast resources, global reach, and established trust. Their expertise across assurance, advisory, tax, and regulatory compliance makes them the elite professional services partners for enterprises worldwide.
Defining the Markers of an Elite Accounting Firm
We will establish the key criteria and capabilities that set the top firms apart, from technical capabilities to client satisfaction rates and more.
Core Competencies: Audit, Tax, Advisory, and Beyond
The top accounting firms in the US have extensive expertise across core accounting services like audit, tax preparation, bookkeeping, and financial reporting. Leading firms also offer a wide range of advisory services including mergers & acquisitions, forensic accounting, risk management, technology implementations, and more.
For example, the Big 4 firms (Deloitte, PwC, EY, and KPMG) provide audit and assurance, consulting, tax, risk advisory, actuarial, corporate finance, and legal services. They leverage cross-disciplinary teams to deliver integrated solutions tailored to client needs.
Mid-sized firms in the Top 25 like RSM US LLP and BDO USA, LLP also offer traditional accounting services while developing specialized capabilities in cybersecurity, wealth management, restructuring, and global expansion. This allows them to support organizations throughout their life cycle and growth stages.
Overall, breadth and depth of expertise is a vital marker of elite accounting firms. The top players continue expanding their capabilities to provide end-to-end guidance, unlock insights, and create value for clients.
Talent Magnetism: Recruiting and Retaining Top Talent
Exceptional talent is the lifeblood of leading accounting firms. The top 20 audit firms invest heavily in recruitment, development, and retention initiatives aimed at attracting and nurturing the brightest minds.
They focus on tier-1 academic institutions for campus hiring, offering competitive compensation packages to draw in graduates. Firms promote continuous learning through formal training programs, international rotations, mentorship opportunities, and more.
The Big 4 spent over $4 billion collectively on learning programs in 2021. Such investments, along with merit-based career progression, enables them to achieve over 90% annual retention rates for high performers. This creates a virtuous cycle, cementing their status as talent magnets.
Mid-sized players also prioritize talent, often highlighting their cultural perks and greater work-life balance to stand out. This helps them compete for professionals seeking alternatives to the intense Big 4 work regimens.
Clientele and Influence: Breadth and Prominence
The client roster and market impact also indicate the stature of leading accounting firms. The Big 4 serve around 80% of the S&P 500, allowing them to develop extensive expertise across industries from banking to retail and healthcare.
Top-tier firms influence national policies and regulations through thought leadership, advocacy efforts, and advisory councils. They release robust market research, provide commentary on proposed laws, and participate in key industry and regulatory bodies.
Such activities underscore their command of complex challenges facing global financial systems and markets today. It enables them to create environments conducive to clients' success.
Mid-sized companies also serve prominent public and private companies across diverse sectors. Developing commanding presence among the world's biggest corporations and growth-stage startups demonstrates the breadth of their capabilities.
Technology Leadership: Cutting-Edge Tools and Innovation
Harnessing technology for efficiency, insights, and value differentiation is a key success factor for leading accounting firms today. The top players invest heavily in developing proprietary software, digital platforms, and AI-enabled tools.
For instance, the Big Four have deployed self-service data analytics dashboards, automated invoice processing using optical character recognition, and blockchain-based auditing. Emerging capabilities in advanced analytics, intelligent process automation, and cybersecurity enable them to uncover deeper insights while improving quality and speed.
Beyond cost and productivity gains, technology leadership helps elevate client delivery and meet demands for real-time, actionable reporting. It creates stickiness through value-added, tech-enabled services other firms may struggle to replicate.
Quality and Consistency: Delivering Exceptional Service
Ultimately, elite accounting firms separate themselves by the exceptional quality and consistency they deliver for clients. Stringent methodologies and extensive supervision ensure staff meet rigorous quality benchmarks.
They back this up with formal satisfaction surveys and net promoter scores. For example, PwC's 2021 client feedback survey found 96% satisfaction across quality, expertise, and value. EY achieved an 8% increase in its net promoter score that same year. Such metrics provide tangible indicators of excellence that underpin the top firms' reputations.
These markers of service quality also prove critical in retaining clients and talent. Demonstrating excellence gives firms credibility that they can consistently meet and exceed expectations for each engagement. This builds enduring trust and loyalty among stakeholders.
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The Pinnacle: Unpacking the Big 4 Giants
The Big 4 accounting firms - Deloitte, PwC, EY, and KPMG - represent the pinnacle of accounting and professional services excellence. As the largest players in the industry, they set the benchmarks for innovation, trust, visionary leadership and versatility in addressing evolving client needs.
Deloitte: The Innovation Leader
With annual investments of $2 billion in R&D and innovation, Deloitte leads the charge in leveraging cutting-edge technologies to transform traditional accounting. Flagship audit offerings like cloud-based Illumia tap AI and analytics to generate deeper insights while increasing efficiency. By integrating automation and emerging capabilities across service lines, Deloitte continues pioneering the technology-powered future of accounting.
PwC: The Trusted Standard-Bearer
Synonymous with consistency and reliability, PwC commands remarkable client trust and satisfaction. Their assurance methodology and audit quality processes cement confidence in financial reporting integrity. Combined with a steadfast commitment to ethics and transparency, PwC's enduring brand reputation makes them the go-to choice for peace of mind.
EY: Boldly Trailblazing into the Future
Channeling ambitious investments in new capabilities, EY is charging ahead to lead accounting into the future. They are already spearheading blockchain transformation for financial reporting. EY's sustainability services also help clients measure and disclose ESG metrics amid growing stakeholder demands. This drive to push boundaries and reimagine accounting unlocks enormous value.
KPMG: Dynamic Solutions for Evolving Needs
KPMG's versatility shines through in their client-centric approach focused on addressing emerging challenges. They combine deep industry expertise with an understanding of shifting market realities. Powered by this vision, KPMG dynamically crafts tailored solutions to help clients tackle new complexities as the accounting landscape continues evolving amid technology disruption and regulatory changes.
Deloitte, PwC, EY and KPMG undoubtedly represent the top accounting firms in the US, setting industry benchmarks for quality and expertise across service dimensions. Their thought leadership steers accounting into the future while market-leading capabilities drive enduring value for global clients. For organizations seeking the best-in-class for their assurance, advisory and tax needs, the Big 4 perfectly capture accounting excellence.
The Contenders: Notable Firms Chasing the Big 4
We analyze the most prominent accounting firms just outside the Big 4 in scale and influence, evaluating their strategies to compete.
BDO USA: Agile Specialists with National Coverage
As the 5th largest US accounting firm and 8th largest globally, BDO continues to expand its national reach while maintaining strong local engagement. With over 90 offices, BDO provides clients with industry expertise backed by an in-depth understanding of regional markets, regulations, and business needs.
BDO serves a wide variety of clients, from Fortune 500 companies to privately-held enterprises and nonprofit organizations. They offer a comprehensive range of assurance, accounting, tax and advisory services tailored to meet client-specific objectives.
A key strength is BDO's agility - their network structure and decentralized management empowers local leadership and faster decision making. This enables BDO to adapt quickly to changing markets and deliver high-quality, customized solutions aligned with client priorities. They also leverage smart technologies to enhance collaboration, streamline processes, analyze data and glean actionable insights.
As a Top 10 global network, BDO matches the expertise and capabilities of the Big 4 firms, while bringing a more personal, responsive approach characteristic of smaller practices. They continue investing to keep pace with global complexity, digital disruption and evolving client expectations - cementing their position as a leading alternative for organizations seeking smart, attentive counsel.
RSM US: Mid-Market Expertise with Global Reach
As the 5th largest accounting network in the US, RSM stands out with its sharp focus and deep expertise serving middle-market businesses. Nearly 87% of RSM’s clients generate under $1 billion in annual revenues – earning RSM a reputation as a preferred advisor for ambitiously growing enterprises.
With teams in major US markets and access to RSM’s global network spanning over 120 countries, RSM delivers exceptional service aligned with mid-market client priorities. They combine local understanding with international capabilities to help clients seize global opportunities and overcome cross-border complexity.
RSM invests substantially in talent, technology and client experiences – ensuring its professionals have the specialized skills and leading-edge tools to provide clients with valuable insights and strategic guidance. They also focus intensely on nurturing close client relationships to truly understand specific business challenges.
This mid-market dedication enables RSM to customize quality services that enhance operations, improve profitability, manage risk, raise capital and drive growth for clients with dynamic needs and bold visions for the future.
Grant Thornton: Relationship-Focused Client Experiences
Grant Thornton distinguishes itself by genuinely knowing clients, their markets and industries – leveraging these connections to deliver responsive value and forward-thinking insights. With over 7,000 personnel across 50+ US offices, they focus on building trust through active listening, candid counsel and tailored solutions.
While matching the expertise of the largest firms, Grant Thornton brings a more personal, collaborative approach – acting as advisors who earn loyalty by creating long-term impact for clients. They actively invest in developing relationships, not just executing engagements – striving to become an integrated, strategic partner equipped to handle both day-to-day needs and complex, evolving challenges.
Grant Thornton also pursues innovation, recently announcing a $300 million commitment to enhance capabilities serving financial services, digital assets and technology sectors. Further investments in analytics, cyber and specialized talent continue advancing their delivery of dynamic, tech-enabled services that provide clients with competitive advantages.
Showcasing Industry Leaders: Accounting Today Top 100 Analysis
Accounting Today's annual Top 100 Firms list offers valuable insights into the leading accounting firms in the US. The rankings provide a benchmark for success based on annual net revenue and growth, spotlighting the industry's heavy hitters. As context, the list features the Big 4 giants - Deloitte, PwC, EY, and KPMG - who dominate public accounting, followed by the top 25 and top 20 audit firms respectively.
Accounting Today Top 100: A Benchmark of Success
Accounting Today thoroughly vets submitted data and verifies details with firm leaders to compile the definitive industry rankings. The Top 100 list unveils key metrics across sectors, service specialties, and more - offering transparency into firm performance. Qualitative factors like expertise, innovation, leadership, and company culture also weigh in rankings algorithms. These benchmarks help set firms evaluate their standing among competitors.
For context, the 2021 rankings showed a nearly 11% aggregate revenue growth across the Top 100 list compared to 2020, indicating the industry's resilience despite the COVID-19 pandemic. The rankings also highlight surging demand for advisory services like technology consulting and transformation, risk management, and cybersecurity - speaking to evolving client needs. Firms must continually expand service capabilities to keep pace.
Top 25 Accounting Firms: The Heavy Hitters
Behind the Big 4 juggernauts, the top 25 accounting firms in the US also boast impressive scale, expertise, and collective net revenue exceeding $18 billion. Many focus on key services like business valuation, litigation support, IT implementation, and niche advisory specialties - though some do offer full-spectrum accounting capabilities. Firms in the top 25 like RSM US, BDO USA, Grant Thornton, and Plante Moran have established national reach, but still lag the Big 4 in global footprint.
These leading firms showcase excellence through investments in technology, talent development, and thought leadership - translating to high service quality for clients. They differentiate themselves by targeting growth in specific industries and advisory services. For example, Top 25 firm Cherry Bekaert specializes in technology sector clients, construction services, and government contracting. Such niche dominance earns top 25 firms their standing as heavy hitters behind the Big 4.
Top 20 Audit Firms: Guardians of Financial Integrity
Given stringent standards and specialization required, the top 20 audit firms in Accounting Today's rankings signify elite expertise in independent financial auditing. While lower net revenue than top advisory-focused firms, leading audit practitioners highlight commitment to assurance services defending public trust in financial transparency. Continued investment in audit talent, emerging technology, and analytics distinguish the cream of the crop.
Top 20 mainstays like Crowe, RSM US, BDO USA, and Grant Thornton leverage deep expertise across assurance services for public and private institutions. Others carved niche audit dominance in specific sectors - like Plante Moran's leadership auditing auto manufacturers and dealers. Such specialization spotlights these firms' unique value in complex audit engagements, cementing their standing among the top 20 guardians of financial integrity.
By the Numbers: Ranking the Top Accounting Firms by Revenue
Analyzing the top accounting firms by revenue provides insights into market presence, service delivery, and overall influence. While financial performance does not equate directly to service quality, revenue scale can indicate a firm's capabilities and client roster.
Revenue Scale: Following the Money Trail
The Big 4 accounting firms of Deloitte, PwC, EY, and KPMG dominate the landscape, generating massive revenues. For example:
- Deloitte brought in $50.2 billion in FY 2021, the highest of any firm.
- PwC followed with $45 billion, with EY at $40.4 billion.
- KPMG generated $32.1 billion.
Their extensive global networks allow them to serve large multinationals and public companies. The Big 4 audit over 75% of US public companies and 95% of FTSE 350 entities, demonstrating their market stranglehold.
Smaller firms simply cannot match the Big 4's scale and resources. The drop-off is steep – the #5 accounting firm, RSM, had 2021 revenues of $7.3 billion. However, smaller firms provide specialized services that the Big 4 do not, serving key niches.
High Earners: The Powerhouses of the Accounting World
Behind the Big 4 are well-known national firms like BDO, Grant Thornton, and Crowe that generate strong revenues through diverse service offerings.
For example:
- BDO recorded $11.8 billion in 2021 revenue across 167 countries.
- Grant Thornton follows at #6 with $6.4 billion across 140 countries.
- Crowe rounds out the top firms with $1 billion in revenue.
These firms provide full-service accounting, advisory, tax, and other offerings to a range of clients, from small businesses to Fortune 500 companies. Their reputations for quality attract top clients across sectors.
Revenue Growth: Indicators of Emerging Leaders
While the largest firms dominate by revenue, smaller firms are rapidly expanding. Tracking revenue growth rates reveals the rising stars that may play bigger roles in the future.
Firms to watch include:
- Armanino, which grew by nearly 30% from 2019 to 2020.
- Wipfli, whose annual revenues have grown by over 20% in recent years.
- Cherry Bekaert, with 10% annual growth over the last decade.
As these firms scale quickly across service lines, they could reshape the competitive landscape, especially in key regional strongholds. Continued high growth may lift them into the top tier of providers.
Benchmarking Greatness: A Data-Driven Perspective
We leverage key metrics on growth, global scale, service quality and more to showcase what sets the elite firms apart by the numbers.
Global Footprint: Where They Operate and Dominate
The Big 4 accounting firms (Deloitte, PwC, EY, and KPMG) have established themselves as truly global operators with enormous international reach. They maintain a presence across more than 150 countries worldwide, with over 900 office locations collectively.
Deloitte leads in scale with 312,000 professionals globally and revenues exceeding $50 billion. EY and PwC follow closely behind with over 300,000 staff each. Though KPMG trails in global headcount, they still maintain an expansive footprint across 147 countries. Beyond the Big 4, mid-tier contenders like RSM and Grant Thornton also demonstrate impressive global coverage across 120+ countries.
The elite firms have strategically penetrated emerging high-growth markets across Asia, South America, and Africa. By establishing foreign offices and local partnerships early, they cement authority and capture expanding opportunities abroad. As economies globalize, these accounting giants continue outpacing smaller firms through their worldwide dominance.
Growth and Trajectory: Taking the Temperature
The leading accounting firms demonstrate steady growth in both revenue and headcount year after year. The Big 4 average around 8-10% annual growth, reliably outpacing the industry. Mid-tier firms like BDO and Crowe follow suit with solid 6-8% expansions annually. Firms with the hottest momentum include:
- RSM - 13% average growth since 2015, projected to become the 5th largest global firm by 2025
- CBIZ - Over 10% CAGR historically, with 2021 growth exceeding 20%
- Wipfli - Over 20% annual growth recently, cementing their rise as a Top 20 US firm
Continued international expansion, mergers and acquisitions, and service diversification power the growth engines for the top performers. Investments in technologies like AI, automation, and blockchain also widen market opportunities. The future remains bright for elite accounting firms evidencing strong and steady trajectories.
Service Quality: Client Feedback Speaks Volumes
When it comes to service delivery, client satisfaction scores and Net Promoter metrics reveal superior performance among top tier accounting firms. EY, PwC, and Deloitte score 80+ in client satisfaction, with positive feedback around expertise, communication, and problem solving. Among mid-tier stand-outs, CBIZ clients rate responsiveness and understanding of business needs exceptionally high.
Net Promoter Scores (NPS) also showcase the brands that clients passionately advocate for based on service experience. The Big 4 earn strong NPS marks ranging 45-55. Among the mid-market, Wipfli demonstrates particular excellence with a 58 NPS, reflecting their commitment to forging genuine partnerships with clients. Across measures, the accounting elite differentiate through service that builds loyalty and wins repeat business.
Key Takeaways: Recapping the Pinnacle Performers
As we conclude our analysis of the top accounting firms in the US, it's worth recapping the key characteristics that set the industry leaders apart and earned them a spot at the pinnacle of the profession:
A Legacy of Excellence
The firms that rank at the very top share a commitment to quality that spans decades. They have continuously innovated and adapted to stay at the forefront of a rapidly evolving industry landscape. Their storied histories and accumulated expertise make them the go-to choice for the most complex accounting needs.
Top-Tier Talent and Specialization
The leading accounting firms employ some of the sharpest and most credentialed talent in the field. Their professionals specialize in key practice areas like audit and assurance, tax preparation, management consulting, IT risk management, and more. This depth of expertise across operating segments gives them an edge.
Cutting-Edge Capabilities and Technology
From leveraging cloud accounting to deploying advanced analytics for improved decision making, the premier accounting firms aggressively integrate the latest tech capabilities. This future-readiness and willingness to disrupt themselves to better serve client needs cement their leadership status.
In an industry where precision, transparency and adaptability are non-negotiable, the top accounting firms checked all the boxes to emerge as standards-bearers. Their unique combination of legacy excellence, top-tier talent, and cutting-edge capabilities make these organizations the cream of the crop. For any business seeking world-class accounting support, the leaders highlighted here represent the gold standard.
