Sudden Closure of Bench Accounting Leaves Hundreds Jobless

Canada-based Bench Accounting, a prominent bookkeeping service, has unexpectedly shut down, impacting hundreds of employees and thousands of customers just before the year’s end. The abrupt closure has raised concerns among small business owners who relied on the service for their financial management needs.

• Bench Accounting, based in Vancouver, has ceased operations, affecting over 600 employees.
• The company had more than 12,000 customers in the U.S. and had raised $113 million in funding.
• Customers will have until March 7 to retrieve their financial data and documents.
• 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 offer services to former Bench clients.

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, boasting a significant customer base and substantial investor backing. However, the company announced on its website that as of Friday, its platform was no longer accessible, marking a sudden end to its operations.

The closure has left many customers scrambling for alternatives, especially with the year-end tax filing deadline approaching. Bench has outlined steps for its customers to retrieve their data, including:

1. Notification by December 30 regarding data retrieval.
2. Access to download current and prior year-end financials, along with uploaded documents like receipts and bank statements until March 7.
3. Recommendations to file for a tax extension to allow time for finding a new bookkeeper.

Local officials have expressed sympathy for the affected workers, particularly during the holiday season. Diana Gibson, British Columbia’s minister of jobs, economic development, and innovation, acknowledged the impact on employees and emphasized the province’s commitment to supporting its financial tech sector.

Former CEO Ian Crosby, who was ousted by the board three years ago, shared his dismay over the company’s fate. He described the situation as a cautionary tale for venture capitalists, stating, "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." Crosby’s sentiments were echoed by Kaz Nejatian, COO of Shopify, who criticized the board’s decision to replace Crosby with new leadership.

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

The sudden closure of Bench Accounting serves as a stark reminder of the volatility in the tech and financial services sectors, leaving many employees and customers in a state of uncertainty as they navigate the transition to new service providers.

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