Bench Shut Down: Businesses Lose Access to Accounting & Tax Documents

Accounting Startup Bench Shuts Down Operations

Bench, a Canadian startup providing software-as-a-service solutions for small and medium-sized businesses, has ceased operations unexpectedly. This information was conveyed through a notification published on the company’s official website.

The notice stated, “We are sorry to announce that access to the Bench platform will be discontinued as of December 27, 2024.” The company acknowledged the suddenness of the news and pledged to assist its customers during this transition period.

Website Offline, Thousands of Businesses Affected

Currently, the entirety of Bench’s website is inaccessible, displaying only the shutdown notice. This leaves a substantial number of businesses facing disruption. Prior to the shutdown, Bench reported serving over 35,000 customers in the United States, as archived by the Internet Archive.

Having secured $113 million in funding from prominent investors like Shopify and Bain Capital Ventures, Bench had developed a platform designed to streamline bookkeeping and tax document management for its clientele.

Customer Reactions and Concerns

The abrupt closure has come as a surprise to both current and former users. Justin Metros, co-founder and CTO of Radiator, noted that his company’s accounting and tax records remain stored on the platform, despite no longer utilizing its services. He first learned of the shutdown through TechCrunch.

“I’ve rarely encountered a company simply ceasing operations in this manner,” Metros commented. “It’s quite unusual.”

Numerous customers have voiced their frustrations on social media platforms, with one user expressing strong dissatisfaction after recently switching from QuickBooks to Bench.

Data Access and IRS Filing Guidance

Bench’s official notice advises customers to file a six-month extension with the IRS to allow time to secure alternative bookkeeping services. Customers are given until December 30 to download their data, with a final deadline of March 2025 for data retrieval.

Recommendation to Migrate to Kick

The notice suggests migrating to Kick, a newer accounting startup that recently raised $9 million in seed funding in October 2024, led by OpenAI and General Catalyst. Kick’s CEO and founder, Conrad Wadowski, shared a message on LinkedIn offering support to former Bench users in regaining access to their financial data.

Lack of Response from Bench

As of the time of reporting, Bench has not responded to inquiries from TechCrunch for comment. Wadowski also declined to provide details regarding any potential agreements or business relationships between Kick and Bench prior to the shutdown.

“We are responding quickly and are prepared to assist many of Bench’s customers with their bookkeeping requirements,” Wadowski stated to TechCrunch.

Company History and Funding

Established in 2012, Bench previously employed over 600 individuals. The company’s investors included IT firm Sage, Contour Venture Partners, and Altos Ventures. It was also a participant in the TechStars accelerator program.

Bench’s most recent funding round, a Series C raise, secured $60 million in 2021. Shortly after this, the company’s co-founder and CEO, Ian Crosby, departed.

Former CEO’s Perspective

Crosby shared on LinkedIn that he was “deeply saddened” by Bench’s closure, asserting that he was replaced by board members seeking a “professional CEO” to alter the company’s strategic direction.

“I sincerely hope that Bench’s experience serves as a cautionary tale for venture capitalists who believe they can improve a company by removing its founder. This approach rarely yields positive results,” Crosby wrote.