Start Your Billion-Dollar Accounting Firm

Internationally, the accounting industry is seeing a notable increase in firms reaching over a billion dollars in revenue, a significant change from the beginning of the 21st century when such large firms were rare. Daniel Hood's analysis, highlights this rapid expansion, especially over the last four years.

Starting with a small group of very large firms in 2000, the number of billion-dollar firms has more than tripled, with significant growth seen from 2020 to 2024. This includes new additions like Plante Moran and CohnReznick, indicating a trend of rapid growth and expansion within the sector.

These large firms operate much like big corporations, with advanced management and operational systems to handle their wide range of services, large numbers of employees, and extensive client bases. They have more employees per partner compared to smaller firms and focus more on consulting services, whereas smaller firms may concentrate on tax or audit services.

Billion-dollar accounting firms set themselves apart from smaller practices through several distinctive approaches:

• Complex Organisational Structures: They have advanced management and operational systems similar to large corporations, designed to support extensive client, employee, and partner bases.

• Higher Staff-to-Partner Ratios: These firms employ a larger workforce relative to their number of partners, enabling them to manage more significant and complex engagements.

• Diverse Service Offerings: They focus more on consulting services, diversifying beyond traditional accounting services like tax and audit, which allows them to address a broader range of client needs.

• Global Presence: Their operations often span multiple countries, helping them serve multinational clients effectively.

However, even with their high revenues, these large firms grow at a slower rate than smaller ones. This trend shows a dynamic shift in the accounting industry, with more firms reaching and surpassing the billion-dollar revenue mark, suggesting a robust and evolving field.