Bench Accounting Shutdown Impacts Thousands of Businesses: What Happened?
Bench, a Canada-based accounting startup that provided software-as-a-service for small and medium-sized businesses, has shocked the business world with its sudden shutdown. The company announced on its website that as of December 27, 2024, the Bench platform will no longer be accessible to its customers, leaving thousands of businesses scrambling for solutions.
Customers Left in the Lurch
The abrupt closure of Bench has left many of its customers in a state of panic. The company’s website is currently offline, except for the notice of shutdown, which has caused significant disruption for users who relied on Bench for their accounting and tax reporting needs. One customer, Justin Metros, co-founder and CTO of Radiator, expressed his shock at the news, stating that years worth of his company’s vital documents are still stored on the platform, despite no longer actively using it.
Recommendations for Customers
In light of the shutdown, Bench has advised its customers to file for a six-month extension with the IRS and seek out alternative bookkeeping partners. Customers have until December 30 to download their data from the platform, with a deadline of March 2025 for completion. The company has recommended migrating to Kick, a new accounting startup that has pledged to assist former Bench users in regaining control of their financial information.
Founder’s Response
Ian Crosby, co-founder and former CEO of Bench, expressed his sadness at the company’s closure, attributing it to a decision by unnamed board members to bring in a new CEO. Crosby’s departure from the company came shortly after Bench raised $60 million in a Series C round in 2021. The founder’s departure serves as a cautionary tale for venture capitalists who believe replacing founders can improve a company’s trajectory.
As the implications of Bench’s shutdown continue to unfold, businesses and customers are left grappling with the aftermath of the sudden closure. The impact of the company’s exit will reverberate across the industry, prompting questions about the future of startups and the importance of founder-led initiatives in the business world.
