Lexington, KY - A lot could happen to a business in three and a half decades. It might quickly catch on, turn profitable and then almost overnight become obsolete and fail. Some never even survive long enough to make it through that business cycle.
And then there are those that weather recessions, the loss of clients, arrivals and departures of partners and staff, all while meeting their fiduciary responsibilities and meeting employee payrolls. That holds true for one of Lexington's largest and oldest CPA firms, Barr, Anderson & Roberts, P.S.C. The firm is celebrating 35 years in business.
"Especially today, with all of the combinations, consolidations and bankruptcies out there, there aren't many CPA firms in central Kentucky that existed in the 1970s that are still here today," said Chris Anderson, the firm's president. "Most of the firms merged into larger ones; others were acquired."
Partner Porter Roberts has been with Anderson for almost the entire length of the firm's existence.
"We hope it's not over," said Roberts with a chuckle. "One of our common threads is that we enjoy the work we do and the people we work with and have been able to cultivate that through the years. It's enjoyable to come to work."
Fledgling CPA firms may wonder what is necessary to achieve such a record of distinction.
"It takes a lot of dedication, hard work and teamwork," Anderson said. "It also takes commitment to the people you work with."
The company has never had to lay off employees, believing it is always better to be a little shorthanded than to be overstaffed.
The partners also admit they've been fortunate to have had a loyal client base over the years.
"We won some and lost some," Anderson said, "but gradually it's grown from the very few we had when we started to the many today."
"We're much more than a traditional CPA. We've expanded way beyond that, based on our expertise in the industries that we service," said Roberts.
Barr, Anderson & Roberts specializes in several areas of accounting but predominately handles tax preparation and planning and transactions and consulting. In addition, it does business valuation, litigation support, medical consulting and bankruptcies. Several years ago, it excluded the audit segment of its business, because the partners felt that it couldn't be done as well.
"I think that's one of our secrets: not getting overextended and into too many things," said Anderson.
The firm has a fair number of equine clients, but not as many as before the industry downturn and the national recession. However, the staff works with many people involved with Fasig Tipton and the racing industry in general.
Barr, Anderson & Roberts has its largest business concentration in the medical field. They work with many physician groups and with small health-care clinics to help them get started or to stay in business.
"They face the same pressures we face, like consolidation of hospitals. You have to be acquired or merge to get larger," said Anderson.
The CPA firm has clients throughout central Kentucky, all over the United States and in foreign countries like Canada, England, Australia and more.
David Smith, another partner, said the firm employs a proactive, rather than reactive, business strategy.
"We talk to many clients and tell them that now is an opportunity to make a difference. Instead of asking us to cut back what we do, some ask us to do more consulting to help them become more profitable," Smith said. "We still have traditional services, but almost half of what we do now involves consulting. That's helped us grow and thrive the last 15 years."
The firm's founding partner is Garland Barr, now retired. Mary Lynn Hinkel and Harvey Thompson are directors.
For small clients, Barr, Anderson & Roberts might even serve as the company's accounting department or chief financial officer if the small operation can't afford to have one or the other on the payroll.
"We'll function in that capacity and become part of their management team," said Smith.
"Our relationship with clients has been so good, it's enabled us to be a trusted advisor of theirs and not just someone who spits out a tax return or financial statement. They involve us in their decision-making," he said.
Corporate fraud is a searing topic today, what with the Occupy Wall Street movement and calls for crackdowns on greedy and illegal financial maneuvers. To safeguard its client base, Barr, Anderson & Roberts developed a fraud prevention area of its business.
"We work with clients to protect them from being defrauded, whether it's occupational fraud from their own employees or illegalities by outside sources, involving things like computer hacking or check forgery. In the long run, it will save them a lot of money and headaches," Anderson said.
But beyond the services provided, the most essential ingredient in the longevity of any accounting firm is integrity, Anderson said, which enables a company to build client trust.
"If they trust you, they stay," Anderson said flatly. "They'll trust your judgment and accounting work. That bond is more important than money."