Bench Accounting, a Vancouver-based company offering online bookkeeping services for small businesses, unexpectedly shut down on December 27, 2024. The company informed customers of the closure through a notice on their homepage, expressing regret for the abrupt news and offering assistance to navigate the transition. Nearly 500 employees were laid off as a result of the shutdown, leading to shock among both employees and customers. People took to LinkedIn to express their sympathies for those affected by the closure and to share their concerns about finding new bookkeeping services at such short notice.
Founded in 2012, Bench had raised over $100 million from top venture firms, including a $60 million round in 2021. At the time of the closure, the company employed over 650 people and was known as North America’s largest bookkeeping service for small businesses. Bench utilized technology and hired bookkeepers to handle the manual bookkeeping work typically required of business owners and contractors. Customers were assured that they would receive more information on accessing their data by Monday following the closure. Bench recommended transitioning to Kick, another accounting software provider, which had created an exclusive offer to accommodate the needs of former Bench customers.
Jean-Philippe Durrios, who was appointed CEO in 2022, led Bench Accounting at the time of its closure. Ian Crosby, the co-founder and former longtime CEO who departed from the company in December 2021, shared details about his resignation in a LinkedIn post on the same day Bench announced its closure. Crosby explained that he disagreed with the board over strategic decisions and eventually decided to step down to avoid further conflict. He expressed concerns that the board’s approach could potentially damage the company’s future and hoped that his experience with Bench would serve as a cautionary tale for venture capitalists who believe they can improve a company by replacing its founder.
The sudden shutdown of Bench Accounting has left many customers and employees reeling, with some expressing disbelief at the company’s closure just days before the end of the year. The shutdown has caused significant disruption for many businesses that relied on Bench’s services for their bookkeeping needs. Customers were left scrambling to find alternative solutions to manage their financial records and ensure a smooth transition to a new accounting service provider. The news of Bench’s closure has underscored the challenges faced by businesses when service providers unexpectedly cease operations, leaving them in a vulnerable position.
The closure of Bench Accounting sheds light on the challenges faced by startups and high-growth companies in the competitive tech industry. Despite raising significant funding from top investors, Bench was unable to sustain its business operations and ultimately had to shut down. The company’s closure serves as a cautionary tale for other startups and founders, highlighting the importance of making strategic decisions and managing growth effectively to ensure long-term success. The unexpected closure of Bench Accounting serves as a stark reminder of the risks and uncertainties associated with building and scaling a business in today’s fast-paced and competitive market.
