A big salary from a big reputed company is always a hope and an expectation for anyone moving to the corporate world. This is the case with every individual and the students who study accounting are also no exceptions. They dream of getting to work with the top Big 4 accounting firms – KPMG, Delloite, Ernst & Young, and Price Waterhouse Coopers, and why wouldn’t they, the Big 4s also give a handsome salary with a wide range of opportunities to enter like that of audit, tax, and advisory, etc.let us know about that the The Big 4 Accounting And Their Pay Scales.
Generally, for the entry-level tax or audit associate, salaries across the Big Four firms are more or less similar. They range from $40,000 to $60,000 depending on the location of the department, country, city, and office. Through the years of practice and experience, these numbers tend to rise, depending majorly upon the skills and performance of the individual.
The Big Four’s Salaries
Salary figures for various posts in these Big Four firms across the United States are discussed below. These figures may vary and will be slightly lower than those compared with UK or Canada. All these salary figures are on per year basis.
Salaries at KPMG
Associate: $45,000 – $60,000
Senior Associate: $60,000 – $80,000
Manager: $100,000 – $120,000
Senior Manager: $150,000 – $180,000
Partner: $300,000+
Salaries at Delloite
Associate: $45,000 – $60,000
Senior Associate: $65,000 – $85,000
Manager: $100,000 – $135,000
Senior Manager: $150,000 – $180,000
Partner: $300,000+
Salaries at PwC
Associate: $45,000 – $60,000
Senior Associate: $65,000 – $85,000
Manager: $105,000 – $130,000
Senior Manager: $150,000 – $180,000
Partner: $300,000+
Salaries at E&Y
Associate: $45,000 – $60,000
Senior Associate: $60,000 – $80,000
Manager: $100,000 – $120,000
Senior Manager: $150,000 – $180,000
Partner: $300,000+
Profession lines at Big 4 and their pay
A common notion says that consulting is comparatively the highest valued profession line at the Big 4 firms. In many instances, it is also said that advisory and consulting people earn 50% more than those people in tax or audit lines.
Further, the tax line is the second highest paid profession line in practice at these firms. They are always seen as specialists; hence their pay also depends mainly upon their specialty and this viewpoint.
The most startling fact is that the audit line, which serves as the prime activity of the Big 4 firms is the least valued profession line in these firms. The Big 4s are known for their outstanding auditing of financial statements but surprisingly, they pay their auditing staff the least compared to all of their employees. It seems like they do not value auditing.
This has mainly happened due to technology and automation in the world of accounting and auditing. Earlier everything had to be done physically and annually, ranging from visiting a company, testing inventory, etc. Today accounting has grown to be more unified and automated through technology. Journal entries are done automatically and are verified electronically. Almost nothing requires manual labour which makes it easier and demands less skill and time. Eventually, pays have been reduced consistently for auditing which is to vanish soon.
Highest paying Big 4 locations
Before getting into the highest paying locations of the big 4, you need to get into a big 4 firm so let us first look through the highest employer locations in the United States. This list starts with California on top, followed by Texas, New York, Florida, and lastly Pennsylvania as the 5th most accountant-employing Big 4 state.
The average annual mean wage in these locations is:
$82,620 in California, $80,490 in Texas, $93, 280 in New York, $69,090 in Florida and $74,500 in Pennsylvania.
Below mentioned are the highest paying Big 4 office locations in the United States. First, we talk about the states and the list goes like this:
- New York, is the highest paying state in the nation with a $93,000 average annual wage.
- New Jersey, pays $88,940 as the average annual wage to accountants.
- Virginia stands on 3rd highest, paying $83,380.
- California ranks 4th, paying $82,620.
In summarizing, if you want to make the most money, look for a job in the north-eastern states of the United States.
Now coming on to cities and metropolitan centres;
- On the top is the San Jose Region with an average annual wage of $101,070 per year.
- Next is the New York City area with an average yearly wage of $98,480.
- Washington DC, standing on 3rd with pay of $91,100.
- Houston on 4th, paying $89,900 as average annual pay.
In summarizing, if you are in search of good accounting and big 4 jobs, the largest states like New York, California, and Texas are the best to focus on. Alternatively, if you are situated on the west coast, San Jose is also a great option to look forward to.
Conclusion
The Big 4 firms viz. Delloite, PwC, E&Y, and KPMG have been the dream companies for any student or individual who wishes to study and work in the accounting sector. They have served a good number of Fortune 500 companies. Eventually, makes it attractive for the job seekers as they provide good salaries and bonuses.
All four have been high-paying companies, nevertheless, their pay scales are almost equal. For an entry-level associate, they’d averagely pay $40,000 to $60,000, a senior-level associate pay would be in the range of $60,000 to $80,000, that of a manager it will be $100,000 to $130,000 and that eventually increases with time, exposure, experience, and skills. We discovered that consulting jobs are the most valued across the Big 4 followed by taxation and lastly, audit.
We also looked at the highest accountant employing states in the US having California on top. The list of highest paying locations of the Big 4 in the US has New York in states and San Jose in cities.
Frequently Asked Questions (FAQs)
Q1. What services do the Big 4 provide?
These companies provide services of transaction advisory, auditing, taxation, risk advisory, consulting, and actuarial service.
Q2. Which is the biggest Big Four company?
Delloite bags title of the largest Big 4 company having earned $50.2 billion of revenue in FY 2021.
Q3. Which Big 4 is hardest to get in?
PwC is the hardest firm of the four to get in. Its reputation and audit business makes it so.
