Bench, a Canadian accounting startup that raised $113 million from investors like Bain Capital Ventures and Shopify, abruptly shut down on December 27, leaving thousands of businesses without access to their accounting and tax documents. Days later, Bench announced it would be acquired by Employer.com, a San Francisco-based HR tech company, in a last-minute deal. However, Bench customers are now facing a new challenge: accessing their financial data.

According to multiple customers who spoke to TechCrunch, they are being forced to agree to updated terms and conditions in order to download their data, which has raised concerns about the handling of sensitive financial information. One customer reported being asked to consent to a page that mentioned no refunds would be possible, which was later removed. Another customer said they were shown a message offering a choice to continue service and accept updated terms or discontinue service and download data, but were later told they had to accept the terms to export their data.

The acquisition of Bench by Employer.com has raised eyebrows, given the HR tech company's lack of accounting and tax expertise. Employer.com, which focuses on payroll and onboarding, appears to be a relatively new company, but digging deeper reveals that it is a dba for Recruiting.com Ventures, a profitable entity that has been around since 2015. Despite this, some Bench customers are uneasy about the transfer of their financial data to a company without a proven track record in accounting and tax services.

Employer.com has responded to the concerns, stating that customers can access their data by providing consent, which authorizes the company to make their data available for download. However, customers seeking refunds for advance payments they made that covered future services that the defunct Bench will no longer deliver will need to contact the bankruptcy trustee for Bench Accounting Inc. or attempt to request a refund through Stripe.

The situation has sparked outrage among Bench customers, with many taking to Reddit to express their disappointment and frustration. The lack of transparency and communication from Employer.com has only added to the concerns, with some customers describing the company's privacy policy as "laughable" and "woefully inadequate" for safeguarding financial data.

The incident highlights the importance of data portability and customer control over their financial information, particularly in the wake of a company's sudden shutdown. As the fintech industry continues to evolve, it is crucial that companies prioritize transparency, communication, and customer trust in order to maintain confidence and credibility.

For more information on this developing story, stay tuned to TechCrunch for further updates and analysis.