Sudden Closure of Bench Accounting Leaves Hundreds Jobless in Canada

Canada’s Vancouver-based bookkeeping service, Bench Accounting, has unexpectedly shut down, resulting in the loss of hundreds of jobs and leaving thousands of customers scrambling for alternatives just days before the year’s end.

• Bench Accounting, a major player in bookkeeping for small businesses, has closed its operations.
• The closure affects over 600 employees and more than 12,000 customers.
• Customers are advised on how to retrieve their financial data before the deadline.
• Former CEO Ian Crosby criticizes the decision to replace him, calling it a cautionary tale for venture capitalists.
• Competing firms are stepping in to offer services to affected customers.

Founded in 2012 as 10sheet Inc. in the U.S., Bench Accounting rebranded and relocated to Vancouver in 2013. It quickly grew to become North America’s largest bookkeeping service for small businesses, raising $113 million in funding and employing over 600 staff members. However, the company announced its sudden closure, stating that as of Friday, its platform was no longer accessible.

The abrupt shutdown has left many customers in a lurch. Bench has outlined steps for clients to retrieve their data, including year-end financials and uploaded documents like receipts and bank statements. Customers will be notified by December 30 and can access their data until March 7. They are also advised to file for a tax extension to allow more time to find a new bookkeeper.

Local officials have expressed sympathy for the affected workers. Diana Gibson, British Columbia’s minister of jobs, economic development, and innovation, extended her thoughts to those losing their jobs, especially during the holiday season. She acknowledged the province’s strong financial tech sector but did not provide details on the reasons behind Bench’s closure.

Ian Crosby, the former CEO and co-founder of Bench, expressed his sadness over the company’s fate. He criticized the board’s decision to replace him, suggesting that it serves as a warning to venture capitalists about the risks of replacing founders. Crosby recalled his struggles with the board regarding the company’s direction, which he believed contributed to its downfall.

In the wake of Bench’s closure, rival bookkeeping firms such as Acuity and Better Bookkeeping have reached out to former clients, offering their services through social media campaigns. This proactive approach aims to alleviate the burden on small business owners who are now faced with the challenge of finding new bookkeeping solutions as the year-end tax filing deadline approaches.

The sudden closure of Bench Accounting has sent shockwaves through the small business community, highlighting the vulnerabilities within the tech sector and the impact of leadership changes on company stability.

• Canada-based Bench Accounting announces sudden closure, putting hundreds out of work, MSN.