Bench Accounting: The Rise and Sudden Fall of North America’s Trusted Bookkeeping Service
In a shocking announcement, Bench Accounting, once a cornerstone of financial management for small businesses across North America, abruptly ceased operations on December 27, 2024. The sudden closure left thousands of clients scrambling to secure their financial data, and over 600 employees without jobs just days before the new year.
Founded in 2012 and headquartered in Vancouver, Bench carved out a niche in the competitive fintech space by offering an innovative blend of cutting-edge software and dedicated bookkeepers. With services like monthly bookkeeping, tax preparation, and financial reporting, the company earned the trust of over 12,000 small business clients. Bench had even secured over $100 million in venture funding and was considered a leader in modern bookkeeping solutions.
A Shocking Shutdown
The closure came as a surprise to both customers and industry insiders. With no prior warning, Bench locked users out of its platform and advised them to download their financial records by March 7, 2025. The announcement was met with frustration, especially given the timing—right before tax season, a critical period for businesses to finalize their financials.
For years, Bench had been a go-to solution for small business owners who lacked the time or expertise to manage their books. By integrating seamlessly with tools like Stripe and PayPal, the platform simplified financial workflows for entrepreneurs. Now, those same businesses face the daunting task of transitioning to alternative services on short notice.
What to Do Next If You Were a Bench Customer
For small businesses affected by Bench’s closure, acting quickly is essential. Here are the steps to take:
- Secure Your Financial Records: Log in to Bench immediately and download all records, including income statements, balance sheets, and tax filings. Ensure you’ve saved these files in a secure, organized location.
- Organize Your Documents: Sort your financial records by fiscal year or category to simplify your transition and ensure nothing gets overlooked.
- Choose an Alternative Service: Evaluate other bookkeeping platforms such as QuickBooks Online, Xero, or Wave. Look for features that match your needs, such as e-commerce integration, real-time tracking, or payroll management.
- Seek Professional Assistance: If the transition feels overwhelming, consider hiring an accountant or bookkeeper to help you manage the process and ensure tax compliance.
- Communicate with Stakeholders: Notify vendors, clients, and partners if the closure impacts any financial workflows or payment schedules.
- Plan for the Future: Diversify your financial management strategy by using multiple platforms or maintaining offline backups of essential records.
Lessons from Bench’s Fall
While the reasons behind Bench’s closure remain speculative, it highlights the vulnerabilities of relying entirely on third-party platforms for essential operations. Some industry experts suggest that internal strategic disagreements, potential financial mismanagement, or market pressures may have contributed to the shutdown.
Ian Crosby, Bench’s co-founder and former CEO, hinted at such issues in a statement following the announcement. Having stepped away from the company three years ago, Crosby expressed regret over the direction the business had taken and the ultimate decision to shut it down.
Broader Implications for the Fintech Community
The rise and fall of Bench Accounting is a cautionary tale for both startups and their clients. It underscores the importance of sustainable growth, transparent communication, and the critical role of leadership in steering a company through challenging waters. For small businesses, this closure serves as a reminder to have contingency plans in place and not rely too heavily on any single service provider.
Conclusion
As Bench’s former clients forge ahead, they carry the lessons learned from this experience—lessons about resilience, adaptability, and the value of planning for the unexpected. While the fintech community reflects on the implications of this sudden exit, small business owners must focus on rebuilding and ensuring their financial health moving forward.
By taking swift action and leveraging available resources, affected businesses can weather this disruption and emerge stronger than ever.
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