Long-term focus keys Dannible & McKee

CNY Business Journal (1996+), Apr 08, 2005 by Dickinson, Casey J

SYRACUSE - Quality work helps build a solid customer base, says Anthony F. Dannible, managing partner of the Syracuse accounting firm of Dannible & McKee, LLP. In 1978, Dannible and partner Lance McKee left their jobs at PriceWaterhouse to start their own accounting firm. The pair moved into a small office at 499 S. Warren St. and started to build a client base.

"In the beginning, we had no clients at all," says Dannible.

Dannible specialized in tax law for Price Waterhouse, while McKee specialized in auditing. Specialization, says Dannible, has been key to providing quality accounting service and establishing the reputation that has allowed the firm to grow.

"Many people think a CPA is a CPA, and that's just not the case," he adds.

Since 1978, Dannible & McKee has gown into a 75-employee firm including 32 certified public accountants. The firm serves more than 1,000 business clients each year, including seven publicly traded companies. The partners also operate a separate valuation firm that shares office space with Dannible & McKee and employs another six. Dannible & McKee has 22,000 square feet of office space at 221 S. Warren St.

A long-term philosophy has kept the firm from entering markets without long-term potential.

"We've avoided ways to 'make money fast' and aimed for steady growth," say Dannible.

More than 80 percent of the firm's business has been built through client referrals, he adds.

Dannible & McKee specializes in providing accounting services to the area's health-care, construction, manufacturing, and professionalservices sectors.

August begins the firm's busiest season, says Dannible. Since most of the firm's clients are corporations, year-end preparations keep Dannible & McKee busy through the fall.

Changing laws force accountants to constantly update their training and study the changes in the law, Dannible explains. Accountants at Dannible & McKee spend approximately 80 to 100 hours each year learning new laws and techniques. The accountants typically travel to educational conferences held in cities across the country.

"The tax laws seem to change daily," says Dannible, "so its important to keep up."

Members of the firm also receive regular updates as laws change. Reading updates carefully, says Dannible, is the best way to ensureclients don't get surprised.

Several years ago, Dannible received a taxlaw update that had "Uruguay" in the title. Not having any interests in South America, Dannible was surprised when he read the full text of a new law.

"Congress had put all kinds of non-Uruguay provisions into the law," he recalls, "some dealt with pensions and other important client matters."

Recruiting new associates is becoming more difficult, says Dannible. The firm recruits at Le Moyne College, Syracuse University, Ithaca College, Clarkson University, and other upstate accounting programs. Dannible expects difficulty recruiting in the future as enhanced licensing requirements add new educational requirements for accountants.

"That's going to put a crunch on the pool of available people," he adds.

Women make up more than half the work force at Dannible & McKee. The firm has adjusted its working conditions over the years to make the workplace more family friendly. Flex-time and other accommodations help employees spend more time with their families while still getting the job done. New employees also start out with a month's worth of vacation time.

"These improvements have increased our productivity," says Dannible.

In the post-Enron world, keeping a clean public image is important to maintaining and growing an accounting practice. Dannible & McKee follows the Sarbanes-Oxley law for its publicly traded clients, says Dannible. The law is a result of accounting firms moving away from core auditing functions and into ancillary services that provided better returns than accounting work, he believes.

"We never take the shortcut for our clients," he adds.