Bench Accounting ‘Abrupt’ Shut Down: What Should Bench’s Clients Do?

On December 27, 2024, Bench Accounting, a major player in online bookkeeping, announced its immediate shutdown. This closure decision affects over 12,000 small business customers who now face urgent challenges with their financial records and tax preparations.

Bench clients have until March 7, 2025 (5:00 PM ET) to download their financial data. The company released this news through a brief notice of service closure on its website. Three days later, on December 30th, Bench posted an acquisition by employer.com, and employer.com confirmed this on their website. Still, this has caused massive trust issues for brands that were working close to them.

The Vancouver-based company, which raised $113 million in funding and employed over 600 staff, had been operating since 2012. Former CEO Ian Crosby expressed his sadness about the closure in a LinkedIn statement. The shutdown has particularly impacted e-commerce businesses preparing for year-end accounting and tax season.

According to CBC News, Kick, a modern accounting software provider, has stepped forward to assist former Bench clients. They’re offering migration services and special discounts to help businesses maintain continuity in their financial operations.

Who Is Bench Accounting?

Bench Accounting, founded in 2012 in Vancouver, grew to become North America’s prominent bookkeeping service provider with over 600 employees. The company secured significant venture funding, including a $60M Series C round in 2021, bringing their total raised capital to over $100M.

Their core offering combines digital bookkeeping tools with human expertise, serving small businesses and e-commerce entrepreneurs through integrations with platforms like Stripe, Square, and PayPal. By September 2024, they managed finances for more than 12,000 clients.

Why Did Bench Shut Down Abruptly?

While the exact reasons for Bench’s shutdown remain unconfirmed, financial analysts suggest several likely factors. Industry experts point to potential debt covenant issues – when companies fail to meet specific financial requirements set by lenders. This typically occurs when a business struggles with profitability or cash flow management. According to former employees on Glassdoor and LinkedIn discussions, the company faced increasing operational costs and competitive pressures throughout 2024.

The timing of the closure, just before year-end, raises questions about their financial obligations. Financial experts from The Globe and Mail suggest this could indicate an attempt to minimize year-end accounting complexities while giving clients sufficient time to arrange tax preparations before the upcoming filing season.

Industry analysts note that the abrupt shutdown announcement, followed by the Employer.com acquisition, indicates a strategic restructuring rather than a complete business failure. The timing, just before year-end, suggests a planned transition to minimize disruption to clients’ tax preparations.

Bench Alternatives For Affected Clients Amid Closure

For businesses affected by Bench’s transition to Employer.com, the immediate priority is securing financial data and ensuring continuity in bookkeeping operations. This situation highlights the importance of choosing a stable, transparent accounting partner who prioritizes long-term relationships with clients.

Why Choose Acgile for Your eCommerce Accounting?

We understand the challenges that occur when such unexpected incidents happen. Our dedicated team has helped numerous companies transition smoothly from Bench, ensuring uninterrupted financial operations and data integrity for the bookkeeping services.

Seamless Integration Across Your Sales Channels

We connect platforms like NetSuite and Quickbooks directly with Shopify, Amazon, Etsy, and eBay, consolidating your multichannel sales data automatically. We track every transaction, from wholesale orders to individual online sales, giving you a complete picture of your business performance.

Real-Time Financial Intelligence

We provide real-time visibility into your business finances through intuitive dashboards. Our system tracks key metrics like profit margins, inventory turnover, and seasonal trends, helping you make informed decisions quickly.

Specialized eCommerce Accounting Expertise

Our team understands the complexities of eCommerce accounting. We handle landed costs, inventory management, and multi-channel revenue recognition. Our accrual-based accounting system ensures accurate profit and loss reporting, considering all aspects of your operations.

Transparent Communication and Support

We maintain open lines of communication with our partners, providing regular updates on their financial status and any industry developments. Unlike traditional services, we offer direct access to your dedicated accounting team, ensuring you’re never left wondering about the status of your books.

Dedicated Migration Support

Our migration specialists work directly with clients to ensure a smooth transition. We handle historical data reconciliation, set up new integrations, and maintain continuity in your financial reporting. This process typically takes 5-7 business days, minimizing any disruption to your operations.

Growth-Ready Infrastructure

Our platform scales with your business, supporting increased sales volume, additional sales channels, and international expansion. We regularly update our systems to accommodate new eCommerce platforms and payment methods, ensuring your accounting stays current as your business evolves.

Commitment to Long-Term Partnership

We believe in building lasting relationships with our clients. Our transparent pricing model means no unexpected costs, and our proactive approach helps identify and address potential issues before they impact your business. We share regular insights about your business performance and industry trends, helping you make informed decisions about your company’s future.

Contact our migration team to learn how we can help stabilize your accounting operations and position your business for growth.