Bench Accounting shuts down! It has shocked thousands of small businesses after Bench Accounting shut down on 27th December. They are now left to scramble to safeguard their financial information and find alternatives.
In a shocking turn of events, the company also announced its acquisition by Employer.com on December 30, 2024, leaving former clients wondering about the future of their bookkeeping needs.
In this blog we hope to find some answers to your queries and break down what happened to Bench Accounting, analyze the impact of its shutdown, and provide actionable steps for businesses seeking alternative bookkeeping services.
If your business was affected by Bench’s closure, read on to explore the best next steps to ensure seamless financial management moving forward.
TL;DR – What Happened to Bench Accounting?
Bench Accounting, a Vancouver-based online bookkeeping service, abruptly announced its closure on the 27th of December, 2024, just before the end of the fiscal year.
The company, which had served over 12,000 small businesses, ceased operations unexpectedly due to unsaid reasons.
While customers were given a brief window till 7th March 2025 to retrieve financial data and documents, the sudden closure still came as a shock.
Small businesses that relied on Bench for their end-to-end bookkeeping services were left searching for alternatives.
If you’re also searching for a reliable bookkeeping service, explore EcomBalance. Sign up today to keep your books in order and bring your business back on track!
What Is Bench Accounting?
Bench accounting is an online bookkeeping service designed for small businesses. It combined proprietary software with human bookkeepers to provide financial reporting, cash flow management, and expense tracking.
The company was widely perceived as a leading player in outsourced bookkeeping and its streamlined solution for entrepreneurs who wanted to offload financial management tasks.
How Bench Became a Major Player in Bookkeeping
Bench, founded in 2012 under the name “10sheet Inc.” grew rapidly due to its user-friendly platform and emphasis on bookkeeping automation.
Over the years, it raised over $100 million in venture capital and became a trusted partner for thousands of businesses across North America.
Their marketing strategy was to present themselves as a hassle-free, done-for-you bookkeeping service that combined technology with human expertise, making it a go-to choice for small business owners.
Their specific importance to Shopify and other e-commerce sellers integration with payment gateways like Stripe and Paypal made them a popular e-commerce accounting software choice.
Why Did Bench Shut Down?
Despite seeing remarkable success, Bench faced many ongoing challenges. While Bench did not reveal the exact reason for the shutdown, we’re left to assume several factors contributed to its closure.
There might have been a secured debt that was called due to a broken debt covenant, which means when a company has a debt covenant that doesn’t meet its obligations, lenders can call for a loan.
Their former co-founder Ian Crosby, who had left the firm, also took to social media that some of the company’s new decisions were very bad and might have contributed to their shutdown.
Warning Signs Leading Up to Bench Closure
If we make an in-depth analysis, there might have been some warning signs that indicated this outcome.
- The company had reduced its workforce by 4-5% in July 2024.
- Some customer reports showed declined quality of service, like slower response times and evident bookkeeping delays.
- Bench experimented with price hikes and service changes. They also pushed customers to switch to an annual contract in recent days.
- Previous employees have also talked about Bench’s struggle to achieve profitability, even after having premium rates.
- Unlike other accounting services, they were stagnated in product development, signaling potential internal problems.
The Impact of Bench Accounting’s Shutdown
The sudden shutdown of Bench affected not only their customers but also their employees. Business owners who have just paid for an annual subscription are uncertain about their refunds.
As they closed just before the year-end, many businesses are left with incomplete books for the year 2024 and are forced to find an alternative to meet tax deadlines.
There are also challenges related to transferring data to another bookkeeping system, as Bench did not integrate with other platforms like QuickBooks or Xero.
When it comes to their employees, which is about 600, they are facing job loss. Company closing during the holiday season also impacted their personal lives.
Reportedly, employees were not warned about such a situation, leaving them scraping for new jobs during holidays.
Top Bench Accounting Alternatives
If you were a Bench customer and are now searching for an alternative for bookkeeping services, then consider these top platforms:
1. EcomBalance
A specialized bookkeeping service tailored for ecommerce businesses that provide expert accounting solutions to help sellers manage cash flow statements, track expenses, and maintain accurate books.
2. AccountsBalance
An online bookkeeping service that offers highly personalized support for small businesses and has dedicated bookkeepers to handle daily bookkeeping. Their transparent pricing and easy-to-use platform make them a reliable choice for businesses looking for hands-on financial management.
3. QuickBooks Online
One of the most widely used accounting platforms, QuickBooks Online, offers a range of features that include invoicing, expense tracking, financial reporting, and payroll management. It integrates seamlessly with many third-party apps, making it a highly flexible solution for businesses of all sizes.
4. Xero
A cloud-based accounting solution known for its ease of use, automation, and scalability. Xero provides strong financial management tools, including bank reconciliation, real-time cash flow insights, and invoicing. It is particularly popular among small businesses and growing enterprises.
5. FreshBooks
This accounting software is designed with freelancers and small business owners in mind. FreshBooks simplifies bookkeeping by offering easy invoicing, time tracking, and expense management. It also features automated payment reminders and integrations with payment processors.
6. Wave Accounting
A free, cloud-based accounting platform that provides essential bookkeeping and invoicing capabilities. Wave is an excellent choice for startups and small businesses that need basic financial tracking without a high price tag.
Why Consider EcomBalance for Your Accounting Needs
Don’t get discouraged by Bench Accounting’s abrupt closure. More than ever, now is your chance to switch to a trustworthy service provider.
End your search with EcomBalance for a reliable replacement. With years of experience and expertise, particularly in ecommerce bookkeeping services, here’s why we stand out:
- Unlike generic bookkeeping services, we have industry-specific expertise. Our accountants are well-versed in handling inventory management, sales tax compliance, and multi-channel financial reporting.
- We offer personalized service and attention to detail for each of our clients.
- Our team understands the financial challenges unique to online businesses and helps optimize financial processes accordingly.
- Business owners receive detailed, easy-to-understand monthly financial reports by the 15th of each month, ensuring better decision-making and financial stability.
- Our financial records always stay tax-compliant and up-to-date, which makes tax season stress-free.
- We have clear, upfront pricing with no hidden fees and highly responsive customer support to ensure seamless bookkeeping and financial management.
While the acquisition by employer.com might seem to bring a solution, think practically if you still want to invest in an unknown third-party or a reliable service provider.
Sign up today with us to get started with a reliable bookkeeping partner.
Lessons From Bench Accounting’s Shutdown
Bench Accounting’s shutdown leaves small business owners with much to learn before putting their trust in other bookkeeping services:
- Steer Clear of Unsustainable Pricing Models: While low-cost services can be attractive, sometimes they signal an unsustainable business model. If a service provider offers pricing that seems too good to be true, it might not be financially viable in the long run.
- Choose a Stable Service: Many startup services that grow their business with hype will struggle to maintain long-term stability. Always prioritize established service providers, and if you’re opting for new firms, then review their track record of financial security.
- Ensure Financial Transparency: Prioritize having clear and consistent reporting from accounting services. Delays in bookkeeping updates or unclear financial statements can be warning signs of deeper issues.
- Conduct Vendor Due Diligence: Be sure to examine a bookkeeper’s financial health, customer reviews, and business history before finalizing. Look for any signs that might indicate potential risks.
- Protect Your Data: Always maintain a local backup of all your financial records, so if a provider shuts down unexpectedly, you’ll have your data stored separately to ensure business continuity.
- Monitor the Financial Health: Stay aware of any signs of instability in companies you depend on.
- Have a Contingency Plan: Always be prepared in case your accounting provider experiences difficulty. Identify alternative services ahead of time to avoid being caught off guard.
Frequently Asked Questions (FAQs)
Here are some commonly asked questions to help you further understand Bench’s sudden shutdown.
When Did Bench Accounting Announce Its Shutdown?
Bench Accounting announced its closure on December 27, 2024, with an immediate cessation of services. The sudden announcement left customers scrambling to secure their financial records and transition to alternative bookkeeping services.
Until When Can I Access and Download My Financial Data From Bench?
Customers were given access to their financial data until March 7, 2025. For businesses, it is essential to act on time to obtain all required documents before the deadline so nothing disrupts tax filings and financial reporting.
Can I Still Contact Bench Support for Assistance?
No, Bench’s support services are no longer available. Customers are advised to seek professional assistance from alternative bookkeeping providers to ensure a smooth transition and continued financial management.
How Can I Ensure My Business Is Protected From Similar Situations in the Future?
Safeguard your business against unforeseen service outages by having a regular backup of financial data, assessing the financial stability of service providers, maintaining relationships with multiple financial management tools, and having contingency plans in place for bookkeeping and accounting needs.
Conclusion
The sudden closure of Bench accounting has given a warning sign to businesses relying on third parties to manage their books. Bench was once a trusted name in online bookkeeping. Its downfall shows us why it’s essential to have financial transparency, sustainable business models, and a contingency plan in place.
If your business has been affected, transitioning to a new bookkeeping service has become crucial for your financial stability. Fortunately, alternatives like EcomBalance and AccountsBalance offer reliable solutions to continue your financial management seamlessly.
Investment in a stable and reputable bookkeeping partner would ensure that such mishaps do not occur and financial security lasts longer.
Get a reliable bookkeeping service for your business with EcomBalance. Sign up today to secure your business’s financial future!
