Do you want to learn about consulting firms and what they do? Then, read this article. We have provided all the information about consulting firms in this article, especially the big four consulting firms. So, keep reading this article to learn more on this topic.
What IS A Consulting Firm?
A consulting firm consists of professionals or experts who provide professional advice, actionable solutions, and guidance to businesses that are experiencing problems that the organizations can’t solve.
Consulting firms build their business around solving these companies’ problems or providing them with solutions to overcome the issues faced by the company. Consulting firms have specific focuses or expertise in particular fields.
Every company has problems that need solving. When executives of the companies cannot solve problems in house, they take help from consulting firms. Executives from the company reach out to a consulting firm of their choice to take advice from industry specific experts. These experts in the consulting firms are called consultants.
After analyzing the situation, consultants observe the company’s problem that needs to be solved. Then, they provide solutions to that specific problem from their expertise. In return for their expert advice, the company pays the consultancy firm.
Consultancy firms have a virtual presence in all industries. The firms provide industry specific consultancy in healthcare, finance, engineering, architecture, advertising, technology, and other public sectors. Hence, different firms offer different trades or practice solutions.
The Big 4 Consulting Firms
The Big 4 consultancy firms in the world are Deloitte Touche Tohmatsu, also known as Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG International (KPMG). These 4 consultancy firms offer consultation in different service sectors like accounting, auditing, tax, legal, risk advice, advisory, and consulting.
The term “Big 4” comes from the industry of accounting that these 4 consulting firms have dominated. These firms offer many career opportunities to prospective consultants.
Deloitte
It tops the Big 4 consulting firms list with annual revenue of 46 billion dollars. Deloitte has 312,000 employees, as per the 2019 report. Their headquarters located in London, United Kingdom. Deloitte was founded in 1845 by William Welch Deloitte.
PwC
The company ranks second in the Big 4 list with an annual revenue of 42 billion dollars. PwC employs 276,000 people as of 2019. Their headquarters located in London, United Kingdom. PwC was founded in 1998 by merging two firms Price Waterhouse and Coopers & Lybrand.
EY
Ernst & Young (EY) ranks third in the Big 4 list with an annual revenue of 36 billion dollars. EY employs 270,000 people as of 2019. Their headquarters located in London, United Kingdom. EY was founded in 1989 by merging two accounting firms Arthur Young & Co. and Ernst & Whinney.
KPMG
The KPMG International (KPMG) is the smallest among the Big 4 consulting firms, with an annual revenue of over 29 billion dollars. KPMG employs 219,000 people as of 2019. Their headquarters located in Amstelveen, Netherlands. KPMG was founded in 1987 by merging two firms KMG (Klynveld Main Goerdeler) and Peat Marwick.
History Of The Big 4
The Big 4 consulting firms have a history that dates back a century for the high-quality services and expertise they provide. Each of the 4 firms has experienced professionals in their teams with specializations in different industries. Some consultancy firms have expertise in mergers and acquisitions, while others have taxation or cyber security expertise. Several other industries, like intellectual property protection, corporate restructuring, risk management, and more, also have industry specific consulting firms.
The Big 4 consulting firms are well known for their commitment to providing excellent services and earned a reputation of trustworthiness. They employ many people around the globe and attract top talents from different business schools, law schools, and universities.
The Big 4 also provides internship opportunities that help students gain important insights into accounting.
Different Services Provided By Big 4 Consulting Firms
The Big 4 consulting firms provide major financial services to different companies around the world. This affects the company’s financial sector, which in turn helps the global economy.
These Big 4 consulting firms play a critical role in providing companies with advice on reducing risks, reducing companies’ costs, maximizing profit margins, increasing efficiency, and remaining competitive with the present market. Some of the major services the Big 4 provides are given in detail below.
Auditing Services
The Big 4 consulting firms audit the majority of public trading companies. This helps ensure that the general trading companies are reporting their financial data accurately. Auditing by the Big 4 ensures that the companies follow applicable laws.
Financial Services
The Big 4 consulting firms provide many financial services to big and small companies. These financial services include preparing tax returns, developing risk management strategies, helping with mergers and acquisitions, providing legal advice, etc.
Quality Assurance And Consulting
These 4 consulting firms also provide quality assurance and consulting services to the companies or clients. The quality assurance and consulting services include accurate verification of the company’s processes and up-to-date processes.
The consultants of these firms help the company improve their operations and develop new strategies. These new strategies for company development help businesses grow and become competitive in the market.
Thought Leadership
The Big 4 consulting firms have a presence in the media that often helps provide insight into current issues relating to the accounting profession. They give this insight information through blogs, industry publications, conferences, and more such outlets to businesses.
The Big 4 have actively contributed to topics like corporate governance and sustainability. They led many researches on these topics as well.
What Types Of Organizations Work With The Big 4?
The Big 4 consulting firms work with different types of organizations from different industries. They work with:
- Healthcare Organizations
- Nonprofit Organizations
- Technology Companies
- Retail Establishments
- Financial Institutions
- Government Entities
The Big 4 firms have clients from Fortune 500 companies and medium or small size businesses. Fortune 500 is the 500 largest companies or businesses in the US gathered by Fortune Magazine.
Conclusion
We hope you have learned about consulting firms and what they do. You also know all the services provided by the Big 4 consulting firms. Let us know if you want to use these Big 4 consulting firms to help grow your business.
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Debamalya Mukherjee
