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Bench Accounting's Troubling Transition: What Small Business Owners Need to Know
After the acquisition of the now-bankrupt Bench Accounting by Employer.com, many small business owners are left grappling with unsettling issues surrounding the promised honoring of pre-paid services. Following a significant cash crisis, which led to the company shutting down in December 2024, the transition has been anything but smooth.
Promises Made, Promises Broken?
CEO Jesse Tinsley reassured customers after taking the helm, stating, “We’re honoring all prepaid Bench services.” However, reports from customers tell a different story. A lawsuit by one customer claims they were charged again for a tax return that they had already paid for under previous ownership. This echoes a broader sentiment of frustration, as several clients attest that they were blindsided by unexpected charges despite prior commitments from the new management.
The Customer Experience: Mistrust Grows
Many customers are expressing disbelief at being required to renew subscriptions for services they had fully prepaid. A representative from the company indicated that the new entity, dubbed “Bench 2.0”, is dissociated from former obligations, leading to confusion and resentment. Clients are scrambling to understand their rights and what constitutes acceptable business practices from their service provider.
Lessons from Bench's Fall: What Businesses Should Consider
The upheaval at Bench emphasizes the importance of owning and controlling your financial data. Many business owners were left without access to critical information when Bench abruptly ceased operations, highlighting vulnerabilities in their service delivery model.
This situation raises an important question for business owners: how secure is your financial data with your current provider? It's essential to evaluate whether you have ownership and access to your financial records to mitigate risks of similar crises in the future.
Protecting Your Financial Future
For small business owners, this ongoing crisis at Bench serves as a reminder to maintain contingency plans and to explore new accounting solutions that empower them with ownership over their financial data. Transitioning to known platforms like QuickBooks or Xero may ensure more reliability in data access and service continuity.
As clients of Bench navigate this chaotic landscape, they must seek clarity on all involvements with the formerly bankrupt firm, understand their consumer rights, and consider preventative strategies for future transactions.
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