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Canada’s Vancouver-based bookkeeping service Bench Accounting has announced its unexpected closure, leaving hundreds of employees without jobs and forcing thousands of customers to seek alternatives just days before the end of the year.
In a statement posted on its website, Bench, which has described itself as North America’s largest bookkeeping service for small businesses, revealed that as of Friday, the platform was “no longer accessible.” The company acknowledged the abrupt nature of the closure, emphasizing that it would assist customers through the transition.
As per CBC News, Bench had previously reported having over 600 employees and more than 12,000 US-based customers. The company had raised $113 million in investor funding. Initially founded as 10sheet Inc. in the US in 2012, Bench relocated to Vancouver and rebranded in 2013.
With the unexpected shutdown, the company has outlined the steps its customers need to take to retrieve their data. They will be notified by December 30 and will be able to download their current and prior year-end financials, along with uploaded documents like receipts and bank statements, until March 7. Customers are advised to file for a tax extension to allow extra time to find a new bookkeeper to file their taxes.
Calls to Bench’s Vancouver office went unanswered, with the line going directly to voicemail. In light of the closure, local officials expressed sympathy for the affected workers. British Columbia’s minister of jobs, economic development, and innovation, Diana Gibson, extended her thoughts to those losing their jobs, especially during the holidays.
She acknowledged that the province’s strong financial tech sector would continue to receive government support but noted that no further information about the reasons behind Bench’s closure was available at this time, as reported by the Vancouver Sun.
Former CEO speaks out
The closure has sparked a reaction from Bench’s 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.
“I hope the story of Bench goes on to become a warning for VCs (venture capitalists) that think they can ‘upgrade’ a company by replacing the founder. It never works,” Crosby said on social media.
Crosby, a University of British Columbia Sauder Business School alumnus, recalled his battle with board members over their strategy for a “new direction” in 2021, which he believed would lead to the company’s downfall. He added that rather than continuing 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, also supported Crosby’s view. “Bad investors destroyed a great Canadian company by replacing the founder with so-called professionals,” Nejatian wrote on social media, echoing Crosby’s sentiments.
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, offering 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.
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