Chaos Averted: Employer.com Acquires Bench Accounting After Abrupt Shutdown

In a surprising turn of events, Bench Accounting, a Vancouver-based bookkeeping startup, abruptly shut down its services on December 27, 2024, leaving thousands of small businesses without access to their accounting and tax documents. Just days later, Employer.com announced its acquisition of Bench, promising a seamless transition for affected customers.

• Bench Accounting shut down unexpectedly, locking out over 12,000 small business clients.
• Employer.com quickly acquired Bench, ensuring continuity of services.
• Customers expressed outrage over the abrupt shutdown and loss of access to vital financial documents.

On December 27, Bench Accounting informed its clients that its platform would no longer be accessible, leaving many scrambling to retrieve important financial data. The company, which had raised over $100 million in funding since its inception in 2012, did not provide a clear explanation for the shutdown. Reports suggest that a bank may have called in a venture debt loan, contributing to the company’s sudden collapse.

Customers were left in shock, with many taking to social media to express their frustration. Justin Metros, co-founder of Radiator Inc., lamented the loss of a year’s worth of accounting documents, stating, "I’ve never seen anyone just shut down like that. That’s crazy." Others, like Matt Palackdharry, criticized the company for mishandling the situation, claiming they had just paid significant fees without even completing the onboarding process.

In a swift response to the chaos, Employer.com announced its acquisition of Bench just days after the shutdown. The acquisition was confirmed through blog posts on both companies’ websites, with Bench assuring customers that their services would continue seamlessly under the new ownership.

Employer.com, based in San Francisco, specializes in workforce management software, including payroll and compliance solutions. The acquisition allows the company to expand its offerings to include accounting services, which could enhance the value provided to Bench’s existing customer base.

The abrupt nature of Bench’s shutdown has left many customers feeling betrayed. Some had recently signed up for services and made advance payments, only to find themselves without access to their financial records. Bench’s notice suggested that customers could migrate to another accounting platform, Kick, which offered to assist former Bench users in retrieving their financial data.

Raman Morris, an entrepreneur who had just begun using Bench, expressed her dismay, stating, "I don’t know how many customers they did this with and just ran off with their money." This sentiment was echoed by many others who felt blindsided by the sudden closure.

As the dust settles from this chaotic episode, it remains to be seen how many former Bench customers will choose to stay with the platform under Employer.com’s ownership. The new parent company has indicated that it will work to integrate Bench’s capabilities into its existing suite of services, potentially offering enhanced features and support for small businesses.

The situation serves as a cautionary tale for startups and investors alike, highlighting the importance of transparency and communication during times of crisis. With the acquisition, there is hope that the valuable services once provided by Bench can be restored and improved for its loyal customers.

• Employer.com acquires troubled bookkeeping startup Bench, ending chaos for customers – SiliconANGLE, SiliconANGLE.
• Bookkeeping platform Bench shuts down; quickly gets acquired, Finextra Research.
• Bench Accounting to be acquired by Employer.com following abrupt shutdown – GeekWire, GeekWire.
• Bench shuts down, leaving thousands of businesses without access to accounting and tax docs | TechCrunch, TechCrunch.