Frequently Asked Questions

Some of our most asked questions and their answers

What Documents do I need to bring for Taxes?

The information you need to bring in for your initial consultation varies from person to person. Typically, we need to see information on all forms of income, any tax deduction information, interest paid, business deductions, etc.

Please refer to our checklist for more information in regards to what is needed for your tax prep.

What makes you better than other accountants?

Diversified Financial Services has been in the business since the 1980s focusing on small businesses. We focus on providing full-service payroll and accounting solutions, using leading-edge technology with a primary focus in Human Capital Management, to meet the specific needs of each client.

Why switch from my current accountant?

Diversified Financial Services takes a hands-on approach to your accounting needs. Unlike many other larger companies, we don’t see you as just another company but as a family. We focus on providing the most benefits to your company while also ensuring your financial needs are met.

Payroll FAQs

What is a subcontractor and who qualifies as one?

A subcontractor is an “entity” you hire to complete a portion of a job under your authorization. Subcontractors make their own schedule and are not told what time to be at the job. You pay them through your payroll and no taxes are withheld. At the end of the year, they will receive a Form 1099, which we will produce for them on your behalf.

What is a W-4 and when do I need one?

A W-4 is given to each employee when they are first hired. It tells the employer the employee’s tax filing status and the number of exemptions they are claiming.

Will DFS pay and file my payroll taxes and quarterly reports on my behalf?

Yes, we have a few different packages available, but we can collect the taxes from you every time we process your payroll and then we will pay the IRS or State on your behalf. We will also prepare and file your Federal and State Reports on your behalf.

What is a W-2 and how will my employees receive them?

Every business with employees is required to issue each employee a W-2, which states their total wages and taxes paid into the IRS for the year, which they use to complete their taxes. Diversified will complete all W-2’s on your behalf for a small fee and have them ready for you to issue to your employees by January 31st of the following year.

What is the current minimum wage?

Current minimum wages are $10.00 and $6.98 for tipped wait staff

Bookkeeping FAQs

What is bookkeeping?

Bookkeeping is taking care and keeping track of money that flows in and out of your account(s). To be most effective, it should be tracked in an electronic format, such as QuickBooks.

Is it really that important that I keep my business bank account separate from my personal?

Absolutely! This is extremely important for tax purposes.

Is it best to submit my accounting work monthly, quarterly, twice per year, or yearly?

Definitely monthly. This way you are not hit with a large bill at the same time your taxes are due. And more importantly, it only benefits you as the client. You will receive monthly financial statements that will show your income/loss, where you spend the most money, where you need to cut back, etc. And in the end, keeping your tax return as accurate as possible.

What do you need from me in order to complete my accounting work?

Diversified will need to receive on a monthly basis all bank account statements, all credit card statements that pertain to business, any cash receipts, check stubs, or check register. And notations on any income or other monies that have “special circumstances” ie: loans.

Is it okay if I hold three separate bank accounts for my books? Such as operating, payroll, and merchant?

Yes and this is actually recommended to make sure that your various expenses and income are not mixed up between different sections of your business.

If my business purchases new equipment, do I need to let my bookkeeper know?

Yes, the cost and date purchased.