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Bench was a terrible service in my experience. I used it for one of my startups a few years ago. I personally invested a lot into said start-up. I checked my

Bench was a terrible service in my experience. I used it for one of my startups a few years ago. I personally invested a lot into said start-up. I checked my books and everything seemed ok. Eventually I found that they had hidden my Gusto payroll line items from view and they were no longer taken into consideration in my books. This led to a $300k shortfall from where I thought I was vs reality. Their team just shrugged when I brought the issue to their attention. The impact was immediate layoffs affecting real people who depended on me. Sure ultimately everything falls upon me the founder. But something so common as GUSTO payroll should never be miscategorized and hidden from view.

willcipriano 2y ago
[flagged]
- pplante 2y ago
  What gave you that impression? I always consulted my financials when making decisions. Unfortunately the books were wrong and I made incorrect choices from that bad data.
  - willcipriano 2y ago
    When I go over my household budget I'd notice if I wasn't paying my mortgage even if someone deleted it from my spreadsheet. It's important enough to me that it's front of mind when I'm thinking about money. I expect to see it on the list. I'd look for it if it wasn't there. Salaries are apparently not that big of a deal in the same way so asking for a higher one seems like a good idea.
    - rudolf1995 2y ago
      Seems like a pretty sweeping generalization to take from a single anecdote about how one person was confused by a bad UI.
  - deleted 2y ago
    [deleted]
  - Projectiboga 2y ago
    This is why you have to do a quick back of the envelope go over of the big numbers and make sure they are at least close. Loosing track of $300K is partly your fault. The scale means you have to be looking at it as part of a big picture summary uncontaminated by technology. With Nuclear Treaties it is called "Trust but Verify" and is applicable to business cash flows. You have to be skeptical of the automated numbers that employees touch as there can be either error or worse fraud.
- Spivak 2y ago
  Generally good advice in general, $10-20k is nothing to even a small business but is probably a lot to you. It's not often an asymmetry works out in the employees favor.
- dang 2y ago
  "Please respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticize. Assume good faith." https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
MichaelZuo 2y ago
How could this kind of ‘hiding’ comply with GAAP standards in any scenario? What sort of accounting books were being prepared where such a function is even needed?
- cj 2y ago
  When I was using Bench, they were only doing cash accounting (not GAAP). We had to switch to a different service when we switched over to accrual accounting.
  - dboreham 2y ago
    Quick note that cash vs accrual basis accounting is orthogonal to whether the balances are correct or not. IANAA but afaik GAAP does not preclude cash basis accounting, provided the conditions where cash accounting is permitted pertain.
    - cj 2y ago
      you’re right, although cash basis would only fly under GAAP if you earn revenue at the time of cash receipt. In other words, anyone collecting money for services not immediately rendered (any subscription service) should be accrual
      - SoftTalker 2y ago
        I don't think cash basis precludes having a liability on the books for un-delivered services. It just means you recognize the revenue when the payment is received. Lots of small companies use cash basis because it's simpler and easier to understand. IANAA.
        cj 2y ago
        I thought by definition you never have any revenue liability on the books (no unearned revenue) with cash basis because you’re recognizing the revenue on the date the cash is received. Nothing is deferred therefore no liability.

willcipriano 2y ago

[flagged]

pplante 2y ago
What gave you that impression? I always consulted my financials when making decisions. Unfortunately the books were wrong and I made incorrect choices from that bad data.
- willcipriano 2y ago
  When I go over my household budget I'd notice if I wasn't paying my mortgage even if someone deleted it from my spreadsheet. It's important enough to me that it's front of mind when I'm thinking about money. I expect to see it on the list. I'd look for it if it wasn't there. Salaries are apparently not that big of a deal in the same way so asking for a higher one seems like a good idea.
  - rudolf1995 2y ago
    Seems like a pretty sweeping generalization to take from a single anecdote about how one person was confused by a bad UI.
- deleted 2y ago
  [deleted]
- Projectiboga 2y ago
  This is why you have to do a quick back of the envelope go over of the big numbers and make sure they are at least close. Loosing track of $300K is partly your fault. The scale means you have to be looking at it as part of a big picture summary uncontaminated by technology. With Nuclear Treaties it is called "Trust but Verify" and is applicable to business cash flows. You have to be skeptical of the automated numbers that employees touch as there can be either error or worse fraud.
Spivak 2y ago
Generally good advice in general, $10-20k is nothing to even a small business but is probably a lot to you. It's not often an asymmetry works out in the employees favor.
dang 2y ago
"Please respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticize. Assume good faith." https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

MichaelZuo 2y ago

How could this kind of ‘hiding’ comply with GAAP standards in any scenario? What sort of accounting books were being prepared where such a function is even needed?

cj 2y ago
When I was using Bench, they were only doing cash accounting (not GAAP). We had to switch to a different service when we switched over to accrual accounting.
- dboreham 2y ago
  Quick note that cash vs accrual basis accounting is orthogonal to whether the balances are correct or not. IANAA but afaik GAAP does not preclude cash basis accounting, provided the conditions where cash accounting is permitted pertain.
  - cj 2y ago
    you’re right, although cash basis would only fly under GAAP if you earn revenue at the time of cash receipt. In other words, anyone collecting money for services not immediately rendered (any subscription service) should be accrual
    - SoftTalker 2y ago
      I don't think cash basis precludes having a liability on the books for un-delivered services. It just means you recognize the revenue when the payment is received. Lots of small companies use cash basis because it's simpler and easier to understand. IANAA.
      - cj 2y ago
        I thought by definition you never have any revenue liability on the books (no unearned revenue) with cash basis because you’re recognizing the revenue on the date the cash is received. Nothing is deferred therefore no liability.