Bench Customers Urged to Share Data or Face Potential Loss: What You Need to Know

In the wake of the sudden shutdown of the Canadian accounting startup Bench on December 27, 2023, and its subsequent acquisition by Employer.com, many customers are facing challenges retrieving their financial data. This situation has left numerous businesses frustrated and seeking clarity on how to access their crucial accounting documents.

Bench’s Abrupt Closure and Acquisition

Bench, a startup that successfully raised $113 million from notable investors such as Bain Capital Ventures and Shopify, abruptly ceased operations, leaving a significant number of businesses without access to their accounting and tax records. Shortly thereafter, the company announced its acquisition by Employer.com for an undisclosed amount in a last-minute deal.

Employer.com: A New Player in HR Tech

Based in San Francisco, Employer.com specializes in HR technology, focusing primarily on payroll and onboarding services, which is a departure from Bench’s accounting and tax expertise. Interestingly, the company’s CEO, Jesse Tinsley, recently acquired the domain name for approximately $450,000. Tinsley has a history of leading various HR and recruitment-related businesses, including Recruiter.com.

However, it has come to light that Employer.com operates under the name of Recruiting.com Ventures. Tinsley took Recruiter.com private in 2023, after purchasing it when it was publicly listed. The CMO of Employer.com, Matt Charney, confirmed that the entity has been in existence since 2015.

Customer Concerns Over Data Access

Bench customers are expressing their dissatisfaction regarding the process of retrieving their data. Many have reported that the consent form provided by the new owner included stipulations that raised eyebrows.

• One customer noted he was required to consent to terms that included a clause about non-refundable payments, which was later modified to remove refund mentions.
• Another long-term customer reported that they had to accept terms in order to access their data, which felt coercive.
• Concerns were also raised regarding Employer.com’s lack of experience in handling accounting and tax matters.

Privacy Policy and Data Handling Issues

Many customers criticized Employer.com’s privacy policy as inadequate for protecting sensitive financial data. Michelle Gayle, a business advisor, highlighted that the changes made to the consent page obscured the rights of users to opt out of transferring their data to Employer.com.

In her words, “They have concealed the fact that this new ‘acknowledgement’ is the same as the previous ‘consent’,” indicating a lack of transparency.

Employer.com’s Response

In response to customer concerns, Employer.com stated that users must provide consent to access their data. Charney clarified that after consenting, customers can download, delete, or continue using the services on the platform. He emphasized that if users opt-out, their data will be deleted immediately after they download it.

For customers seeking refunds on pre-paid services that Bench can no longer provide, Charney advised contacting the bankruptcy trustee of Bench Accounting Inc. or filing a request through Stripe.

Overall, the situation has left many former Bench customers feeling frustrated and uncertain about their financial records. For those looking for alternatives, it may be worthwhile to research other accounting services that prioritize customer data security and transparency.

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