Big 4 Accounting Firm, KPMG, announced global revenues of $25.42 billion for their fiscal year ended September 30, 2016.

This is an increase of almost a billion dollars of revenue when compared to their $24.44 billion of revenues for 2015.

This represents a growth of about 8% in local currency terms and real growth of about 4%.

The mix of revenue was $10.12 billion in audit, $9.74 in advisory and $5.56 in tax.

Advisory had the most growth for KPMG. Advisory grew by 11.5% in 2016. Advisory grew from $9.1 billion in revenue in 2015 to $9.74 billion in 2016.

---

Revenue by Region

KPMG has 3 regions for measuring financial results. Those regions are EMA (Europe, the Middle East, and Africa), Americas and Asia.

KPMG’s best performing region was their Europe, Middle east, and Africa region. That region earned $11.34 billion.

The next largest region was the Americas region with $10.02 billion in revenue.

KPMG’s smallest region was the Asia Pacific region. This region brought in $4.06 billion.

KPMG’s Asia Pacific region saw the highest growth rate with a 9.8% growth rate.

The Americas had the second most growth with a growth rate of 9.6%.

---

KPMG Number of Employees

The Number of employees working at KPMG grew to 188,982 in 2016. This represents a growth of about 8.6% in headcount.

KMPG Partners

KPMG had 9,843 partners as of their fiscal year ended September 30, 2016. That is a growth of about 400 partners compared to the 9,445 KPMG partners in 2015.

KPMG professionals

The number of non-partner KPMG professionals grew from 134,064 to 147,028 in 2016.

Support staff grew from 30,456 to 32,111 in 2016.

KPMG people by region

KPMG’s EMA region has the most employees with 96,404 people. Their Americas region has the second most people with 54,111. Asia has the least number of employees with 38,467.

 

 

PwC recently announced revenues of $35.9 billion for the fiscal year ended June 30, 2016. This is only a slight growth from their 2015 revenue. PwC Revenue for 2015 was $35.4 billion in  2015.

---

Revenue by line of service

Their revenue breaks down by line of service as follows:

 

Assurance revenues of $15.3 billion. This represents a growth of 1%.

Advisory revenues of $11.5 billion. This represents a growth of 2.6%

Tax revenues of $9.1 billion. This represents a growth of 1.6%.

Advisory enjoyed the largest growth at 2.6% in US dollars.

PwC blamed the low growth on the strong US dollar. You can see this in their results from their overseas regions.

---

PwC Revenue by Region

Change in revenue by region:

---

PwC’s revenue grew the most in developing countries like India and China. In those regions, PwC enjoyed US dollar growth of 6.8%.

PwC also had growth in their North America region of 6.3%.

---

PwC Number of Employees

 

 

 

PwC has 223,000 employees as of the fiscal year ended June 30, 2016. That is pretty strong growth from the 208,000 employees they had in 2015.

They added 58,081 people in 2016. This only netted to net employee growth of 15,000 employees. This means that about 43,000 people left the firm in 2016.

The growth of 15,000 employees represents 7% growth in 2016.

PwC Partners

PwC admitted 665 partners in 2016. 27% of those new partners were females.

---

Related:

2016 PwC Partner Admits

How many people work for PwC

---

 

Other Statistics

New Services

PwC has over 15,800 employees to support their clients with technology services.

Enhancing quality

PwC invested over $500 million in enhancing their audit quality and service to their clients.

Employees  partook in over 11 million hours of training.

Diversity

Over 50% of new graduate employees were female employees.

27% of new partners were females.

Reputation

Named the strongest global b2b brand.

83% of employees say that they are proud to work at PwC

---

Community involvement

PwC donated $63 million to social responsibility causes in 2016. By comparison, Deloitte donated $75 million.

PwC donated 820,000 hours of services to social causes in 2016. They did not place a monetary value on the service hours like Deloitte did. By comparison, Deloitte provided 1.3 million hours to pro bono projects and volunteerism.

---

Conclusion

It’s interesting that PwC’s revenues had such little growth year over year. I wonder if part of this has to do with PwC’s damaged reputation due to cases like Taylor Bean. Clients might be afraid of headline risk of doing business with them.

PwC has a lot of large lawsuits pending while Deloitte had one whistleblower case.

Deloitte just signed a huge deal with Apple as well. That deal with Apple will help Deloitte win other large projects. Deloitte can use the Apple consulting work to their other clients to win more work. They can show new clients that the largest company in the world trusts Deloitte with their brand.

PwC on the other hand will have to be out in the market beating the audit quality drum in order to maintain their brand. That is why they are speaking about the amount they invested in audit quality in this press release. They want to combat the negative press they have received from all the recent lawsuits.

Additionally, PwC needs to calculate a monetary value for their community service hours to receive a positive impact to their brand. 820,000 hours is a significant amount of time, but it doesn’t seem significant until you say it is $X hundreds of millions of dollars. For example, Deloitte stated that their volunteer service hours were worth $225 million.

We will need to keep an eye on the results for PwC for the coming year and see if they dip due to headline risk. Deloitte revenue for 2016 was $36.8 billion which is almost a billion dollars more than PwC. Subscribe to our newsletter to get updates about PwC and their revenue.

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.

Deloitte Global Revenue By Year

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.

Deloitte Global Professional by Year

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.

Other accomplishments

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.