Vancouver-based Bench Accounting, North America’s largest bookkeeping service for small businesses, has abruptly shut down its operations, leaving thousands of clients scrambling for alternative solutions just as tax season approaches.
The shocking announcement arrived via a "Notice of Service Closure" posted on its website dated December 27, 2024. The statement read, "We regret to inform you... the Bench platform will no longer be accessible. We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition." This closure has sparked confusion and anger among Bench's clientele, many of whom expressed their frustrations about the timing and the lack of advance notice.
Social media pages for Bench, including Instagram and Facebook, also appear to have been removed overnight, leaving customers feeling blind-sided as they head toward the final days of the financial year.
Founded by Ian Crosby, who was named to Forbes’ 30-Under-30 list, Bench Accounting began operations as 10sheet Inc. in 2012 before rebranding to its current name after moving to Vancouver. The company had grown to employ over 650 staff and served more than 11,000 customers across the United States. It raised over $100 million from notable investors like Shopify and Sage Group.
Although Bench’s initial announcement did not explicitly mention layoffs, reports surfaced on social media from former employees stating they were let go. Linked posts indicated widespread job losses, potentially affecting as many as 450 workers, with many "Benchmates" sharing their experiences and offering to help each other find new positions.
One former employee wrote: "I’m very sorry to all the employees affected, especially two days after Christmas. This is brutal." Clients who were left shocked include Monika Rose, founder and CEO of artisan market Grapes & Goods, who said, "Over the past year, I noticed higher team turnover and slower communication. Just weeks ago, I even decided to onboard my new company with them. Now, I’m left with no books and feeling deeply let down." Others echoed similar sentiments, feeling blindsided by the sudden service disruption.
Ian Crosby, who served as CEO until late 2021, posted on social media expressing his sadness over the company's closure. He noted, "I hope the story of Bench goes on to become a warning for VCs (venture capitalists) who think they can ‘upgrade’ a company by replacing the founder. It never works." This sentiment was amplified by Kaz Nejatian, Chief Operating Officer at Shopify, who remarked, "Bad investors destroyed a great Canadian company by replacing the founder with so-called professionals."
B.C. Ministry of Jobs, Economic Development and Innovation Diana Gibson extended her sympathies to all employees affected, highlighting the disappointment surrounding the closure. She noted, "Our thoughts go out to the people who have lost their jobs, especially during the holidays." She expressed hope for stronger support for the tech sector going forward.
Bench's service closure is part of troubling trends facing Canadian businesses. Recent reports indicate closures at rates not seen since the pandemic began, with Statistics Canada reporting five percent of businesses shutting down as of June this year.
Customers have been advised on the company’s former website to download important financial documentation by December 30, with access maintained until March 7, 2025, providing some transition time amid the chaos. The closure has left clients scrambling to sort out their bookkeeping needs during the busy tax season.
Former clients are now reaching out to alternate bookkeeping services, with direct competitors such as Acuity and Better Bookkeeping leveraging the opportunity to attract distressed clients from Bench.
Despite these turbulent changes, Bench's abrupt shutdown serves as both a sudden shift and as cautionary tale about the volatile nature of venture-backed enterprises and the significant impact leadership decisions can have on businesses and their employees.
This developing story will continue to be updated as more facts emerge about the closure's impact and the next steps for affected clients and employees.
