What Happened to Bench Accounting?

Kimberly Green | 2024-12-28

Bench Accounting, once a dominant player in the online bookkeeping industry, shocked its customers and employees with an abrupt announcement of its closure on December 27, 2024. The Vancouver-based company, which had positioned itself as North America’s largest bookkeeping service for small businesses, left tens of thousands of customers scrambling for alternatives just before tax season. We're gonna look at the key details of Bench’s closure and explore Bench Accounting alternatives to keep your business on track. The Rise and Abrupt Fall of Bench Accounting Founded in 2012 as 10Sheet Inc., Bench Accounting rebranded in 2013 and quickly became a leader in online bookkeeping services. The platform combined cutting-edge software with a team of in-house bookkeepers, offering small businesses a streamlined way to manage their financials. By 2021, the company had raised over $113 million in funding from high-profile investors like Shopify and Bain Capital Ventures. Despite its growth, the company faced internal challenges. Ian Crosby, the co-founder and CEO, left in 2021 following strategic disagreements with the board. Crosby has since shared his concerns about the leadership changes, stating, “I was totally convinced that their approach would destroy the company. I opted to resign from the board rather than fight.” On December 27, 2024, Bench announced it would no longer be accessible, leaving businesses without immediate access to their bookkeeping and tax documents. Customers were advised to download their financial data by March 7, 2025, and file for tax extensions if necessary. The abrupt closure has not only disrupted businesses but also impacted over 600 employees who were laid off. Why Did Bench Shut Down? While Bench has not provided a detailed explanation for its sudden closure, several factors likely contributed: Leadership Changes: Crosby’s departure and the appointment of a new CEO in 2022 may have led to strategic shifts that didn’t align with the company’s strengths or customer needs. Financial Challenges: Despite raising significant funding, scaling a bookkeeping service with both technology and human expertise can be costly and complex. Customer Dissatisfaction: In recent years, Bench faced criticism for delays in financial reporting and poor customer service. Some long-term users expressed frustration over declining quality, with one customer saying, “Turnover was bananas, and year-end financials kept taking longer to complete.” Market Competition: Bench operated in a competitive space...