Accountancy firms outside the top 10 struggle to gain brand recognition with the Big Four, BDO and Grant Thornton the most well known firms
A lack of brand recognition is a key factor for smaller firms with the list dominated by established Big Four and mid-tier firms while only rapidly growing consolidator Azets has managed to enter the top 15 in terms of awareness based on strong branding and rapid growth.
PwC was the most recognised accountancy firm with the best brand reputation at 74%, according to brand consultancy Industry in its 2nd Accountancy Brand Survey 2024.
Next on the list was Deloitte and KPMG, ranked equally at number two, closely followed by EY with 68% recognition.
Between the Big Four, the average score for recognition was 72%, compared with mid-tier firms with the average brand awareness dropping to 40% for BDO and only 25% for Grant Thornton and 23% for RSM.
Eighth on the list was Mazars, renamed Forvis Mazars in November 2023, with 14% recognition.
Crowe, Moore, PKF and network Baker Tilly came next, albeit with 7% or less awareness by respondents to the Industry survey. Interestingly Baker Tilly was number 12 on the list, equal with PKF, at 4% awareness.
However, in terms of the UK market Baker Tilly is a global network only and does not operate as a named firm although MHA, a top 15 firm, is the UK member. Baker Tilly UK was rebranded as RSM back in 2015 showing how strong the brand is despite a lack of presence in the market.
Outside the top 12 index, Evelyn Partners, Azets and Haines Watts each had 3% awareness.
Sholto Lindsay-Smith, director of Industry, said: ‘Brand reputation is partly driven by brand awareness, which in turn, is partly a factor of size. The larger firms have greater front of mind awareness. This makes the job of building brand profile and reputation much tougher for the next tier of firms which are significantly smaller in scale.’
One of the best performers outside the big names was Azets in terms of building brand awareness very quickly as the name has only been used for four years since September 2020. And Evelyn Partners may gain more traction to reflect its financial ranking as number seven firm when it rebrands to S&W after its private equity deal goes through later this quarter.
However, Industry stressed: ‘It is notable that many respondents in the survey continue to cite Smith & Williamson, rather than using the new brand name Evelyn Partners, showing how hard it is to manage the transition to a new brand name in the market’.
The brand ranking only differed slightly from the Accountancy Daily Top 75 Firms survey ranking, with Saffery included in the top 15 in terms of revenue, but with lower brand recognition than the smaller Haines Watts.
Although the list of firms with the best brand recognition tended to reflect their financial strength, Lindsay-Smith said: ‘The nomination of the firms was unprompted rather than giving respondents a list of firms to choose from.
‘This is a tougher but truer test of brand reputation as it factors in brand awareness as well as brand favourability.’
For both accountants and clients, the reputation of a firm was essential to business success, and an important factor for clients when choosing a firm in such a populated market.
A respondent to the survey said brand mattered, as it differentiated businesses and helped with the selection process, citing ‘firms with a client centric approach, such as Grant Thornton, for growing businesses or PwC for multinational corporations’.
Customer service is critical for clients, with 88% said it was the most important factor when appointing a new firm. This was closely followed by speed of response and understanding of the client’s business (both at 86%).
The sharp drop in brand awareness and reputation between the Big Four and the mid-tier firms is ‘proof that a well-established brand can dominate perceptions’, Industry stated in the report.
Brand is also a key factor in the recruitment process across the board from experienced staff to graduates, with 86% of respondents saying the brand of a firm would impact where they choose to apply.
The Big Four stand out here once again, with most accountants wanting to work at the largest firms, however, PwC was the clear favourite with 60% of respondents saying they aspired to work there. Deloitte was the second most attractive place for employees (54%), followed by EY (49%), and KPMG (48%). Next on the list was BDO at 18%, before a sharp fall to RSM at 9% and Grant Thornton and Moore on 8%.
An experienced professional, and respondent to the survey said: ‘The single most important factor when considering a firm to work for would likely be the opportunities for professional growth and career advancement.’
When comparing the firms young professionals and experienced professionals aspire to work for the top six differs largely, with experienced people optic for PwC being their top choice, then Deloitte, EY, and lastly KPMG. Youngsters still look to the Big Four, but consider Deloitte the best choice, followed by KPMG, PwC, and then EY.
The final choice in the top six differs though, with the younger generation considering Grant Thornton a desirable firm to work at, whereas the more experienced have put RSM here.
Lindsay-Smith said: ‘The generational divide offers both significant opportunities and challenges for accounting firms.
‘Ultimately, the future success of firms will depend on their ability to balance priorities - preserving high standards while fostering an environment that appeals to the next generation of professionals.’
Least important to clients was a firm’s commitment to improving their carbon footprint, with just 66% of respondents stating this was important when hiring a firm. A commitment to diversity was also not as important as other areas with less than three quarters of respondents saying this would determine their decision, closely followed by a firm having a ‘clear social purpose’ (74%), and it being a fast-growing firm (74%).