BDO USA, P.C. is the US member firm of BDO International, the 5th largest global accounting network with over $12.8 billion in revenue. It is the 6th largest accounting and professional services firm in the United States by revenue.[3] In 2023, BDO USA, P.C. became the first large national accounting firm to convert from a traditional limited liability partnership, to an entirely employee owned corporation. Due to this conversion, all employees are eligible to gain an equity stake in the company.[4] The company is currently headquartered in downtown Chicago.[5] BDO stands for Binder, Dijker, and Otte, the original founders of the firm.[6]
 | |
| Company type | ESOP corporation |
|---|---|
| Industry | Professional services |
| Founded | 1910 |
| Headquarters | One Prudential Plaza Chicago, Illinois |
Key people |
|
| Products | Assurance Services Accounting Services Tax Advisory Tax Planning Tax Compliance Consulting Services Management Consulting Risk Advisory IT Consulting |
| Revenue |  $12.8 billion (global)$2.82 billion (USA) (2024)[1] |
Number of employees | 12,200 (2024)[2] |
| Website | www |
History
editBDO USA, P.C was founded as Seidman and Seidman in New York City in 1910 by three immigrant brothers: Maximillian L. Seidman, Francis E. Seidman, and Jacob S. Seidman. At that time the accounting profession was in its infancy, with fewer than 2,200 practicing CPAs in the United States. Shortly thereafter in 1913, the Sixteenth Amendment to the United States Constitution was ratified, followed by the Revenue Act of 1913 with new impositions of U.S. federal income tax enacted by Congress in that year. M. L. Seidman saw the potential of the accountant's role to provide tax services to individuals. By 1917, Congress enacted the first revenue bills and the U.S. entry into World War I created the need for corporate income and excess profit taxes. At the same time, federal spending rose to $18.9 billion with 58 percent of the federal revenues provided from income taxes. M.L. Seidman and his siblings, who joined him in his new accounting firm, seized the opportunity to provide tax services to businesses in addition to individuals.
Expansion
editAn era of expansion began. Fostered by the federal government's conversion of furniture and woodworking companies to aircraft production for the war effort, the firm opened an office in Grand Rapids, Michigan, in 1917. Seidman and Seidman quickly established itself as a leader in serving the furniture industry by developing the first effective furniture plant costing system. Today, BDO Seidman's furniture industry practice remains in the industry.
In 1925, the firm rapidly expanded, opening offices in Jamestown, Illinois, and Rockford, Illinois, followed by Chicago in 1921, and Gardner, Massachusetts, in 1924. In 1922, J. S. Seidman joined the firm as a founding member.
The 1930s brought another new beginning for the accounting profession. In 1933, Congress passed the Securities Act, requiring public corporations to have financial statements included in registration statements and periodic reports reported on by independent CPAs. A year later, the Securities and Exchange Commission was created to administer the new legislation.
In 1950, L. William Seidman joined the firm and ultimately became its managing partner before leaving for government service, most notably as chair of the FDIC.[7]
Development of the national firm
editThe firm continued to grow and by the 1960s, truly became a national firm. On April 1, 1968, the firm was converted into a national general partnership. This marked the beginning of a new era of expansion. Over the years to the present, the firm established many offices throughout the United States.
Present
editToday, BDO USA, P.C. has more than 75 offices and more than 400 independent alliance firm locations nationwide. During this timeframe, BDO International was created and has grown to become the fifth largest accounting and consulting network in the world with over 1,591 member firm offices in 162 countries.[8]
In February 2009, BDO USA, P.C. launched the firm's first-ever national advertising campaign: "People Who Know, Know BDO".
In June 2012, the monitor (Joseph A. Smith Jr.) of the National Mortgage Settlement announced he engaged BDO USA, P.C. as his primary professional firm. BDO joined the monitor and his team for a period of three and a half years overseeing implementation of the historic National Mortgage Settlement involving 49 states, the United States government and five of the nation's largest banks.
In July 2020, BDO USA, P.C. launched Athenagy, a proprietary business intelligence platform for legal professionals.[9]
In July 2023, BDO USA, LLP changed from a traditional limited liability partnership to a professional services corporation and was renamed to BDO USA, P.C.[10]
References
edit- ^ "Accounting Today Top 100 Firms 2024".
- ^ "Accounting Today Top 100 Firms 2024".
- ^ "Largest Accounting Firms in the US". statista.com. Retrieved 2024-02-02.
- ^ "BDO to Convert to a Corporation, Replacing US Partnership". BloombergTax.com. 21 June 2023. Retrieved 2023-07-02.
- ^ "BDO USA P.A. - Company Profile and News". Bloomberg.com. Retrieved 2019-02-02.
- ^ "Background". www.bdo.global. Retrieved 2020-04-02.
- ^ William Seidman, Who Led Cleanup of S&L Crisis, Dies, Bloomberg, May 13, 2009
- ^ "BDO makes new regional hire". 8 January 2019.
- ^ "BDO Launches Athenagy™—The New Business Intelligence Platform for Managed Services". Bloomberg.com. 27 July 2020. Retrieved 2020-08-14.
- ^ "BDO to Convert to a Corporation, Replacing US Partnership". BloombergTax.com. 21 June 2023. Retrieved 2023-07-02.