Canada-based Bench Accounting has unexpectedly closed its doors, impacting hundreds of employees and thousands of customers just days before the year’s end. The Vancouver-based bookkeeping service, known as North America’s largest for small businesses, announced that its platform is no longer accessible, prompting immediate concerns for those affected.
Key Takeaways
- Bench Accounting has ceased operations, leaving over 600 employees without jobs.
- The company had more than 12,000 customers, primarily in the U.S.
- 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.
- Competitors are stepping in to offer services to former Bench clients.
The closure was confirmed in a statement on the company’s website, where Bench acknowledged the abrupt nature of the shutdown and pledged to assist customers during the transition. Customers will be notified by December 30 and can download their current and prior year-end financials, along with important documents like receipts and bank statements, until March 7. They are also advised to file for a tax extension to allow extra time to find 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. 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 noted that while the province’s financial tech sector would continue to receive government support, no further information about the reasons behind Bench’s closure was available at this time.
Former CEO Speaks Out
The closure has drawn reactions from former CEO and co-founder Ian Crosby, who was ousted by the company’s board three years ago. Crosby expressed his sadness over the company’s fate and shared his perspective on the closure, which he sees 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 strategy for a “new direction” in 2021, which he believed would lead to the company’s downfall. Rather than continue to fight, he chose to resign when he was replaced by a new leadership team.
Kaz Nejatian, the COO of Shopify, which was 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 Step In
As Bench’s sudden closure leaves many businesses scrambling for alternatives, rival bookkeeping companies such as Acuity and Better Bookkeeping have reached out to Bench’s former clients, offering their services through social media campaigns. Some have even responded to complaints from former Bench customers, providing solutions for those affected by the disruption.
The closure of Bench Accounting has left many small business owners grappling with the uncertainty of finding a new bookkeeping service, just as the year-end tax filing deadline approaches. The impact of this sudden shutdown will likely be felt across the small business community as they seek to navigate this unexpected challenge.
