Canada-based accounting startup Bench provides software-as-a-service solutions for small and medium-sized businesses. It has unexpectedly ceased operations, as announced on their official website.
“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible,” reads the company’s website, which has been reduced to displaying only the shutdown notice. The platform’s sudden closure has left its reported 35,000 U.S. customers searching for alternatives and racing to retrieve their financial data.4
Accounting Firm Bench Collapses, Leaving Customers and Data in Limbo
The shutdown has sparked concern among current and former customers who relied on Bench’s software-as-a-service platform for their bookkeeping and tax reporting needs.
Justin Metros, co-founder and CTO of Radiator, expressed his disbelief at the situation, noting that years of his company’s accounting records remain stored on the platform. “I’ve never seen anyone just shut down like that,” Metros said. “That’s crazy.”
The timing of the shutdown is particularly inconvenient with tax season looming for most businesses. Bench has informed its clients to file six-month extensions with the IRS while they “find the right bookkeeping partner.”
The firm is offering a limited window for downloading data, letting customers access their information up until March 2025, and the initial period for downloads will end December 30.
Curiously, the shutdown notice from Bench sends its customers to Kick, an accounting startup that recently raised $9 million in seed funding by OpenAI and General Catalyst in October 2024. Kick’s CEO, Conrad Wadowski, has already begun reaching out to former Bench users, saying his company is “working to get your financials back in your hands.” Still, questions about whether there was any pre-existing relationship between the two companies are left unanswered.
What Went Wrong with the $60 Million Accounting Startup
The company has over 600 employees and has raised funding from some of the most prominent investors, including Shopify, Bain Capital Ventures, Sage, Contour Venture Partners, and Altos Ventures. Its last major fundraising was a $60 million Series C in 2021, and after that, its co-founder and CEO, Ian Crosby, left.
Crosby took to LinkedIn to express his disappointment, suggesting that the company’s downfall may have been tied to leadership changes initiated by the board. “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 wrote, claiming he had been replaced by board members seeking to install “a new professional CEO” to alter the company’s direction.
The sudden shutdown has left many customers frustrated and scrambling to secure their financial data. One disgruntled user voiced their frustration on social media, stating “As a customer, I’m pissed,” having recently switched from QuickBooks to Bench’s services.
This sudden shutdown is a harsh reminder of the risks a company undertakes by outsourcing basic functions, such as accounting and bookkeeping, to digital service providers.
Now that this saga is already unfolding, thousands of companies are finding alternative solutions with the necessity to ensure their ability to retrieve essential financial records before access to this information ceases.
