Bench, an online bookkeeping service for small businesses, recently announced the closure of its business operations on 27th December, 2024, leaving thousands of small across America in a state of panic.
Founded as 10Sheet Inc. in 2012 and rebranded as Bench in 2013 after relocating to Vancouver, Bench has been operating as a user-friendly bookkeeping software paired with in-house bookkeepers.
Over the years, Bench has onboarded over 35,000 clients and secured venture funding, expanding its businesses. In 2021, Bench added integrated banking services to its offerings after securing $60 million in funding. However, it all seemingly came to an end on 27 December 2024, when customers found themselves unable to log into their accounts, only to discover Bench was closing shop with tax season just around the corner.
Later, in an email to its customers, Bench informed its customers on how and when they’d be able to access their data:
“We understand this news may come as a surprise and are committed to helping you navigate this transition in the days to come. For now, please note that your Bench records will be made available for your business use in the future. As of Monday, December 30th, 2024 you will be able to retrieve your records at data.bench.co using your Bench login credentials. This portal will be available for 10 weeks until Friday, March 7th, 2025 at 5pm EST.”
According to the company’s information on LinkedIn, Bench has over 500 employees. Many employees took to LinkedIn, Reddit, and other social platforms to express their distress over being laid off just two days after Christmas.
Reports showed that multiple small businesses had recently signed with Bench. Even the companies that had been working with Bench were left in the dark. With the tax season just around the corner, thousands of companies had to hold emergency meetings to figure out the situation after Bench shut down.
Bench had initially recommended that its customers file for a six-month extension with Internal Revenue Services so they could find a new bookkeeping services provider in the meantime. After TechCrunch announced Bench’s acquisition, Employer.com said the customers don’t have to file for an extension if they decide to stay on.
While things seem to have taken a turn for the better with Employer.com acquiring Bench and calling back previous employees, the whole ordeal has caused uncertainty in the minds of customers. Small business owners already had the tax season to worry about, and now they have to figure out who to trust with their bookkeeping.
Failing a tax audit leads to a bigger tax bill and can result in heavy penalties. Not to mention a business will also lose its credibility in the eyes of the shareholders as well as customers if it gets penalized by the IRS.
In its notice of service closure, Bench recommended accounting software provider Kick to its customers for support with their bookkeeping tasks.
While Kick’s automation may appeal to those seeking a hands-off approach, it primarily focuses on simplifying transactional bookkeeping. Small business owners looking for their books to be handled by professional bookkeepers — who have deep knowledge of accounting software — can consider CoCountant, where dedicated finance teams provide personalised service.
It’s important to note that Bench’s closure left thousands scrambling, not just for a new bookkeeping service, but also for access to their own financial records.
This situation is a stark reminder to prioritize solutions that offer transparency, portability, and independence. Partnering with providers who use open and widely accessible platforms ensures that your financial data remains in your control, no matter what.
