Bench, a Prominent Accounting Startup, Abruptly Shuts Down Leaving Thousands of Businesses in a Lurch
Recently, Bench, a Canada-based accounting startup known for its software-as-a-service catering to small and medium-sized businesses, has shocked the business community by announcing its sudden shutdown. The announcement was made through a notice posted on its website, stating that the platform will no longer be accessible starting December 27, 2024.
The abrupt closure has left thousands of businesses stranded, as the company’s entire website is now offline, with the exception of the shutdown notice. Prior to the shutdown, Bench proudly boasted having over 35,000 U.S. customers, as indicated by a snapshot saved by the Internet Archive.
Having raised $113 million from notable investors such as Shopify and Bain Capital Ventures, Bench was renowned for its software platform designed to assist customers in storing and managing their bookkeeping and tax reporting documents.
The unexpected move has caught both current and former customers off guard. Justin Metros, co-founder and CTO of Radiator, revealed that years worth of his company’s accounting and tax documents are still stored on Bench’s site, despite no longer actively using the platform. The news of the shutdown came as a surprise to him.
Expressing their grievances on social media, customers like Justin are frustrated by the sudden shutdown, with one user stating, “as a customer, I’m pissed,” after recently transitioning from QuickBooks to Bench.
In light of the shutdown, Bench has advised its customers to file a six-month extension with the IRS and to seek out alternative bookkeeping partners. Customers have until December 30 to download their data from the platform, with a deadline of March 2025 for completion.
For those seeking a new accounting solution, Bench has recommended migrating to Kick, a burgeoning accounting startup that recently secured $9 million in seed funding. Kick’s CEO, Conrad Wadowski, has assured former Bench users that they are dedicated to assisting them with their financial needs.
Despite numerous requests for comment, Bench has remained silent on the matter. Wadowski, when approached for details on any prior engagement with Bench, emphasized Kick’s commitment to supporting Bench’s customers during this transition phase.
Founded in 2012, Bench once employed over 600 staff and was backed by prominent investors like Sage, Contour Venture Partners, and Altos Ventures. The startup’s most recent funding round in 2021 saw them raise $60 million in Series C funding. However, following this, co-founder and CEO Ian Crosby departed from the company.
In a poignant post on LinkedIn, Crosby expressed his sadness over Bench’s closure, attributing it to the decision of unnamed board members to replace him with a new CEO. He warned against the common practice of VCs attempting to “upgrade” a company by replacing its founder, asserting that such actions rarely lead to positive outcomes.
