ELI5: Explain Like I'm 5

Big Four accounting firms

Okay kiddo, have you ever heard of big companies like McDonald's or Walmart? Well, just like them, there are some really big companies that help other companies with their money and financial stuff. These companies are called accounting firms, and the four biggest ones are called the “big four.”

So, what do these big four accounting firms do? Well, when a big company needs help with their money, they hire one of these firms to help them out. The accounting firm will go through all of the company’s finances, including things like how much money they make and spend, and help them make sure everything is in order. This is called auditing.

The big four accounting firms are also really good at helping companies with taxes. You know how you have to pay taxes on your allowance or income? Well, companies have to pay taxes on all the money they make too, and it can get really complicated. The big four accounting firms are experts in tax laws, and they help companies make sure they pay the right amount of taxes.

Another thing the big four accounting firms do is help companies make big decisions. Let’s say a company wants to buy another company or invest a lot of money in a new project. The big four accounting firms can help them figure out if it’s a good idea or not by analyzing the finances and doing research.

So, the big four accounting firms are like super smart helpers for big companies when it comes to their money and finances. They make sure everything is in order and help companies make good financial decisions.