Orange County’s largest accounting firms accelerated hiring in the year ended May 31, pushing it up 3.3%, more than the 2.1% reported a year earlier, based on the Business Journal’s annual list.
“It’s been a good year; we’re very busy,” said Tim Brandt, managing partner of the Costa Mesa office of Deloitte LLC. “With tax reform, we’ve got a lot of demand.”
Deloitte, the biggest accounting firm in Orange County, increased its local headcount 5.5%, ending the period with 904 employees. Other areas of OC expansion at the New York-based firm include audits of emerging growth companies in industries such as life sciences and technology, Brandt said.
Hiring growth among top-ranked firms was in its seventh consecutive year.
This week’s Special Report includes a list of the 54 largest accounting firms with operations in the county, ranked by local employees. The list also includes the number of partners and certified public accountants, though those counts don’t affect the rankings.
Big 5
The five largest firms retained their rankings:
• No. 5, Squar Milner LLP of Newport Beach, increased its OC employment 6% to 195. Its companywide headcount rose 18% to 429 employees with its acquisition of DZH Philips LLP of San Francisco.
• Two of the big four accounting firms trimmed OC employee counts: KPMG LLP in New York is No. 2 with 480 Irvine-based employees, down 5.9%; and No. 4, PricewaterhouseCoopers LLP in New York, which brands itself as PwC, is No. 4 with 375 employees in Irvine, down 5.8%.
• The biggest decline was at Redwitz Inc. of Irvine, falling 10 spots to No. 16 as employment dropped 56% to 75. A company spokesperson didn’t return a call seeking comment.
• Two firms premiered on the list: No. 34, Crowe LLP, a Chicago-based firm with a Costa Mesa office, with 29 OC employees; and No. 43, CyberGuard Compliance LLP, an Orange-based firm with 23 employees.
• Newport Beach-based Anton & Chia LLP, ranked No. 26 last year, declined to participate and was taken off the list. It’s contesting fraud charges by the Securities and Exchange Commission.
Definite Growth
The firms employed 5,060 people during the year, up 163 year-over-year. The growth was widespread, 32 firms expanding in OC as 12 reduced staff and the remainder reported no change.
• “We are definitely seeing growth,” said Roger Weninger, regional managing partner for Seattle-based Moss Adams LLP, whose Irvine office climbed one spot to No. 6. “We’re looking for places to expand.”
It increased employment 19%, ending the year with 189 in Orange County. About half of the growth resulted from its acquisition of Hein & Associates LLP last year, Weninger said. Moss Adams is growing in areas including taxes, and in industries such as healthcare and construction. Moss also named six new partners for a total of 19. Weninger said two came from Hein and that the others deserved the promotions.
• Another firm with a notable employee increase was LSL CPAs and Advisors of Brea, which grew its headcount 69% to 110. It climbed five spots to No. 12. In January it acquired ELLS certified Public Accountants & Business Advisors, which brought it 40 employees.
• CBIZ MHM LLC’s Irvine office made a 50% jump in OC employment to 42, pushing it up 13 spots on the list to No. 26.
Cleveland-based CBIZ (NYSE: CBZ), the No. 10 U.S. accounting firm, bought McKay & Carnahan Inc. of Newport Beach in December on undisclosed terms, and absorbed McKay’s 36-year-old practice into its local offices.
• The list also includes firmwide jobs, which rose 4.5% for a total of 1.03 million; that number doesn’t affect the rankings. The Business Journal also compiled a list of management consultants in this report that includes some accounting firms.
More Partners
The number of partners reflected on the list climbed 6.3% to 571, or one in 10 employees.
• Firms making notable increases in partner counts include LSL, up eight to 17 partners, and No. 13, HMWC CPAS & Business Advisors of Tustin, up five to 12 partners.
• A clear trend among ranked firms is certified public accountants being hired at a faster rate than other types of employees, 5.6% compared to 2.2%. They combined to employ 1,750 CPAs, or about 35% of local employment.
• No. 9, White Nelson Diehl Evans LLP of Irvine, hired the biggest number of CPAs, 17, or 31%, to 72. Other firms with significant CPA increases include HMWC, up 15 to 50 CPAs; LSL, up nine to 37; and Redwitz, up eight to 21 CPAs.
