Vancouver, December 28, 2024 - Bench Accounting, North America's largest bookkeeping service for small businesses, has announced its sudden closure, leaving hundreds of employees facing job loss just days before the end of the year. The abrupt decision, which made the company's platform unreachable, was conveyed through a notice posted on its website.
The statement from Bench, dated December 27, reflects on the nature of the closure, acknowledging the disruption it may cause to clients. "We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition," the statement reads. With the firm previously claiming over 600 employees, the closure raises immediate concerns for these workers and the business owners who relied on its services.
Founded in 2012 as 10sheet Inc., the company relocated to Vancouver and rebranded as Bench the following year. Over the years, it secured around $113 million in investor funding, emphasizing its growth and ambition to serve small businesses across North America.
Following the announcement, calls to Bench's Vancouver office went unanswered, redirecting to voicemail. The communication lapse has heightened tensions and concerns among customers, who are now seeking alternative bookkeeping solutions. While the platform shuttered immediately, the company has promised to provide clients with access to their data until March 7, 2025. A communication on its website confirmed, "You’ll be able to enter your Bench login credentials to download your current and prior year-end financials, as well as any documents you’ve uploaded such as receipts and bank statements." Clients were advised to file for tax extensions to accommodate the transition.
Ian Crosby, the former CEO and co-founder of Bench, expressed his sorrow over the company's demise. Crosby, ousted by the board three years prior, weighed in on the situation with social media remarks. "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," Crosby implored. He also criticized the board for deciding to replace him when disagreements over strategic directions arose, implying this led to mismanagement and, eventually, the firm's downfall.
Kaz Nejatian, COO of Shopify, one of Bench's investors, echoed Crosby's sentiments, stating, "Bad investors destroyed a great Canadian company by replacing the founder with so-called professionals." This insight sheds light on the tensions between traditional governance models and the innovative spirit often necessary for startups.
With the closing of Bench Accounting, rival bookkeeping firms swiftly moved to capitalize on the opportunity, reaching out via social media to attract former clients. Companies like Acuity and Better Bookkeeping highlighted this pivotal moment, signaling their readiness to accommodate those searching for new bookkeeping services. These competitors are not just reaching out with offers; they are also addressing complaints and customer needs left unmet by Bench's abrupt exit.
The closure has repercussions beyond just job losses. Small businesses across Canada depended on Bench for its software-as-a-service (SaaS) offerings to automate bookkeeping processes. The company's promise of support and guidance during this transition now weighs heavily on the clients who must navigate without their previously reliable partner.
Current and former customers are feeling the pinch. Many are scrambling to migrate their financial data to alternative platforms potentially causing delays and complications as they approach tax season. Bench's website suggested it would assist users throughout this transition, yet users must now depend on alternative solutions to fulfill their bookkeeping needs. The suggestion to try out another service, "Kick," may not be feasible for everyone due to the complex nature of transferring sensitive financial data.
The impact of Bench Accounting’s closure marks not just the loss of jobs but the struggle of numerous businesses left without the services they relied upon. The future of small bookkeeping services is now being debated, especially considering the rapid shifts within the startup culture and how governance decisions ripple through company operations.
While Bench is winding down, the broader lessons from its failure might serve as cautionary tales for entrepreneurs and investors alike. It reiterates the importance of maintaining strong leadership aligned with the company's vision—a lesson echoed by both Crosby and Nejatian.
This report reveals significant shifts affecting local employment and small businesses, signaling challenging tides for the Vancouver community and beyond. The spontaneous comments and reactions from industry insiders reflect the urgency of adapting to this rapid closure as many brace for the ripple effects.
