Deloitte issued a press release announcing the results of their 2016 fiscal year revenues. They are the first of the big four accounting firms to announce results.
Their global revenue totaled $36.8 billion for their 2016 fiscal year. Their fiscal year ended May 31, 2016.
This is no surprise that Deloitte released their revenues first as they have the earliest fiscal year end in May
Here are the year end dates for the other big 4 firms:
EY – June 31, 2016
PwC – June 31, 2016
KPMG September 31, 2016
Deloitte has not issued their global report yet which shows their comprehensive results in an interactive webpage and a pdf. They have released their recent figures though.
They had revenue of $36.8 billion versus $35.2 billion for 2015. They are getting closer and closer to $40 billion in revenue. Read about the big 4 accounting firms’ revenue for 2015.
The actual growth is about 4.5% but Deloitte said their revenues grew by about 9.5% in local currency terms.
Their headcount increased from 225,000 professionals in 2015 to $244,400 in 2016.
That is an increase of almost 20,000 professionals. The press release states that they had 71,800 new hires. That’s impressive, but the math doesn’t work. What that means is that they lost more than 50,000 employees over the past year as well. That is an accomplishment in itself.
Don’t worry though turnover is common in the top CPA firms.
Deloitte also released that 50,000 individuals were able to experience Deloitte University this year.
They also highlighted the social impact they made this year by stating they contributed $225 million to social causes. The big four continue to take tons of credit for their social impact in these press releases. I feel like that should be a separate press release, but the big 4 have been including it with their fiscal year results. My thoughts on this are that they are trying to keep people feeling touchy feely about the revenues.
If all they did, was take credit for the amount of cash they were hauling in, regulators and clients might get upset. Regulators might get upset that they have too much market share, money is coming to easily to them and they have no competitors. Clients might get mad that their bills are too high. When you sandwich great financial results in between talking about how many people you hired and the amount of money you spent on social change, it doesn’t make people feel as bad about handing their money over to you.
It also makes people feel better about any bad headlines involving whistleblowing such as their recent involvement in the Monsanto whistleblowing case.
U.S. Facts and Figures
As part of this release Deloitte also released their 2016 US revenue results.
Check out our post about the largest accounting firms in the US to see where Deloitte lands.
Their revenues in the United States increased from $16.1 billion in $2015 to 17.5 billion in 2016. This represents about a 9% increase in revenues in line with the global revenue increase. The growth across lines of services was pretty steady except for tax which saw a slightly larger uptick in revenues. They saw almost a 9.3% growth rate. This was likely due to BEPS coming down the pike as well as interest in the 385 regulations coming up.
Deloitte also increased their headcount of professionals in the US by about 7,000 individuals.
There is a section of their press release where they cite a few things that they accomplished this year. This is a preview of what will get blown up and dressed up in the global report they issue later in the year. The global report obviously takes more time than this press release because of the graphic design time that goes into developing a nice interactive website and results package.
1. They invested $650 million since 2008 to enhance their audit quality. This includes enhancing automation. This sounds interesting. Sounds like a similar program to KPMG’s development of the KPMG Masters program and KPMG’s investment in artificial intelligence.
2. Deloitte is expanding their investment in financials services technology such as investments in the Blockchain lab in Ireland. Deloitte has been investing a lot into blockchain technologies and bitcoin in general. They even recently installed a Bitcoin ATM into their lobby in Toronto.
3. They released an enterprise crowdsourcing application that helps companies tap into external crowds to access expertise that is hard to find. This will allow companies collaborate to build new digital assets together.
Deloitte will build upon and further explain all of these accomplishments in the interactive global report that they will release later this year, so make sure you stay tuned for that.