Bench Accounting Shuts Down Abruptly, Leaving SMBs Scrambling

VANCOUVER, B.C., December ​29, 2024 – Banking Accounting, a leading Canadian accounting company serving small and medium-sized enterprises (SMEs), announced its ​unexpected ​closure, leaving thousands of clients and employees struggling with the fall. In a notice posted on its website, ​the company stated that its platform would no longer be ​accessible as of December 27, 2024, marking a brutal end to its ​activities.

The ​notice on Bench’s home page, ​the only remaining ​feature on its website, acknowledged the disruption caused to clients. “We ​know this news is abrupt and can cause trouble, so we are committed ​to helping Bench ​clients through the transition,” ​the statement said. Customers are advised to download their data by December 30, with access until March 2025, ​and to submit a six-month ​extension to find new accounting services. ​The movement comes as ​a ​shock to more than 35,000 companies ​in the United States that relied on Bench for accounting and tax reporting solutions, according to archived snapshots of the company’s website.

Client ​and employee reactions

The sudden closure resulted in widespread frustration and ​confusion between clients and employees. Justin Metros, co-founder and CTO of Radiator, expressed his disbelief in the situation. “I’ve never seen anyone like that. This is crazy,” he told TechCrunch. Similarly, many clients have issued complaints on social media, with an overview of their anger after recently changing to the QuickBooks Bench. Will Champagne, founder of SCGC Search, is concerned about the thousands of companies left without support during the year’s final ​accounting. ​”I am ​very sorry to all employees affected, especially two days after Christmas. It’s brutal,” ​writes Champagne in LinkedIn.

Bench’s employees were also blind. Links To ​these positions, redundancies were confirmed that ​affected hundreds of staff. Once more than 600 people have been employed, ​the company is now criticized for its management of the closure and the timing of its announcement, which arrived shortly after ​the holiday season.

The legacy ​of a Fintech power plant

Founded in 2012 by Ian Crosby, Bench started ​operating as 10sheet Inc. ​before scoring ​in 2013. Vancouver’s start-up has become the largest accounting department in North America for ​small businesses. By combining technology with human accounting staff, Bench has aerated accounting tasks, allowing clients to manage financial ​records easily. By 2021, the company had raised more than $113 million from investors, including ​Shopify, Bain Capital Ventures and Sage, and its employees over 650 people.

Despite its success, internal problems have arisen. Crosby, who left the ​company in December 2021, shared the details of his departure with ​LinkedIn. He mentioned strategic ​disagreements with the Board as a key factor, stating that he was replaced ​by a “professional CEO” led to Bench in a new direction. “I was totally convinced that his approach would destroy the company,” Crosby wrote. ​”I hope that the story ​of ​Bench becomes a warning for the QoL that believes it can” accelerate “a company by ​replacing the founder. It never works.” Shopping the CO Kaz Nejatian echoed Crosby’s sentiments by saying: “Cod investors have destroyed a large Canadian company by replacing the founder with so-called professionals

Kick ​Transition Plan and ​Role

As customers are looking for other solutions, Bench recommended the transition ​to Kick, ​a new accounting start-up that increased by $9 million in October 2024. Kick’s CEO Conrad Wadowski assured Bench’s former customers at LinkedIn that the company is ​ready to help. “We are working to put their finances ​back on their hands,” he said. However, when ​asked by TechCrunch about any previous business relationship between Kick and Bench, ​Wadowski refused to comment.

Meanwhile, other accounting firms, including Acuity and Better ​Booking, have begun to reach Bench’s former clients, highlighting ​their services. The sudden closing ​of Bench created a competitive revolt in the online accounting space, with Viving’s suppliers to fill the gap behind it.

Industrial consequences

The unexpected closure of Bench Accounting ​highlights the risks faced by venture capital-based ​startups and aggressive growth strategies. He also raised questions about Board decision-making and the possibility of replacing the founders with external executives. Crosby’s reflections on his departure ​revived discussions on the importance of the founder’s leadership in ​the technology and fintech sectors.

According to a GeekWire report, the sudden closure left a large gap in the accounting industry, particularly for small businesses ​preparing for the tax season. Former employees, called “brothers” internally, took LinkedIn to help each other and seek new opportunities. However, many clients are still not sure about recovering critical financial data and finding reliable alternatives before submitting deadlines.

According to CBC News, the provincial government of British Columbia ​is also investigating the ​situation, ​with ​a British Columbia Ministry of Employment spokesperson indicating that further comments will be provided as details arise. Meanwhile, companies affected by the ​bank ​closure are encouraged to explore their competitors and seek professional advice to mitigate shocks.

Bench’s history serves as a precautionary account for venture capital ​companies and recalls the ​challenges inherent in the scale of a fintech company. For ​the thousands of SMBs ​left in limbos, the search for ​a reliable accounting partner continues as a tax limit.