In a shocking turn of events, Bench Accounting, a prominent bookkeeping service based in Vancouver, Canada, has announced its sudden closure, impacting hundreds of employees and thousands of customers just days before the year’s end. The company, which touted itself as North America’s largest bookkeeping service for small businesses, made the announcement on its website, stating that the platform was no longer accessible as of Friday.
Key Takeaways
- Bench Accounting has closed its operations, affecting over 600 employees and 12,000 customers.
- Customers will have until March 7 to retrieve their financial data.
- Former CEO Ian Crosby criticizes the board’s decision to replace him, calling it a cautionary tale for venture capitalists.
- Competing bookkeeping firms are stepping in to assist former Bench clients.
The abrupt closure has left many small business owners scrambling for alternatives, as they now face the challenge of finding new bookkeeping services during a critical time for year-end financial reporting. Bench had previously raised $113 million in funding and was known for its innovative approach to bookkeeping, having rebranded from its original name, 10sheet Inc., after relocating to Vancouver in 2013.
In its statement, Bench acknowledged the unexpected nature of the closure and assured customers that they would be supported during the transition. Customers will be notified by December 30 and will have the opportunity to download their current and prior year-end financials, along with important documents such as receipts and bank statements, until March 7. The company has advised clients to file for a tax extension to allow additional time to secure a new bookkeeper for tax filing.
Calls to Bench’s Vancouver office went unanswered, with the line going directly to voicemail. Local officials have expressed sympathy for the affected workers, with British Columbia’s Minister of Jobs, Economic Development, and Innovation, Diana Gibson, extending her thoughts to those losing their jobs, especially during the holiday season. She emphasized that the province’s robust financial tech sector would continue to receive government support, although no further details regarding the reasons behind Bench’s closure have been disclosed.
Former CEO's Reaction
The closure has drawn attention from Ian Crosby, Bench’s former CEO and co-founder, who was ousted by the company’s board three years ago. Crosby expressed his dismay over the company’s fate and shared his perspective on the closure, viewing it as a cautionary tale for venture capitalists.
Crosby stated, "I hope the story of Bench goes on to become a warning for VCs that think they can ‘upgrade’ a company by replacing the founder. It never works." He recalled his struggles with board members over their strategic direction in 2021, which he believed ultimately led to the company’s downfall. Rather than continue to fight, Crosby chose to resign when a new leadership team was appointed.
Kaz Nejatian, COO of Shopify and an investor in Bench, echoed Crosby’s sentiments, stating, "Bad investors destroyed a great Canadian company by replacing the founder with so-called professionals."
Competitors Offer Support
As the news of Bench’s closure spreads, rival bookkeeping companies such as Acuity and Better Bookkeeping have begun reaching out to former Bench clients, offering their services through targeted social media campaigns. Some competitors have even responded to complaints from former customers, providing solutions to help those affected by the disruption.
The sudden closure of Bench Accounting has left many small business owners grappling with uncertainty as they seek new bookkeeping services, all while facing the impending year-end tax filing deadline. The situation serves as a stark reminder of the volatility within the tech and financial sectors, particularly for companies reliant on venture capital funding.
