Bench Accounting Startup Shuts Down, Leaving Thousands Without Access to Tax and Accounting Docs

In a shocking move, Bench, a Canadian-based accounting software platform, has shut down its services. As of December 27, 2024, Bench’s platform is inaccessible, leaving over 35,000 U.S. businesses stranded without access to critical bookkeeping and tax documents. This abrupt closure has caught users off guard, leaving many scrambling for alternatives.

What Happened to Bench?

The Rise and Fall of Bench

Founded in 2012, Bench was a SaaS platform that helped small businesses manage their accounting and tax reports. Backed by major investors like Shopify and Bain Capital Ventures, the platform was widely used by small and medium-sized enterprises for bookkeeping.

However, without warning, Bench shut down its services, sparking confusion and frustration among its users. A notice posted on its website read, “As of December 27, 2024, the Bench platform will no longer be accessible.”

The Impact of Bench’s Shutdown on Customers

Immediate Effects on Businesses

Businesses that relied on Bench for managing their financial records and tax filings are now left with no access to years of important documents. Bench’s platform was especially popular among companies looking for a cloud-based solution to manage bookkeeping without needing to hire a full-time accountant.

What Bench Customers Should Do

Download Your Data: Users have until December 30, 2024 to download their financial and tax documents.
File an Extension: Customers are advised to file a six-month extension with the IRS if they are unable to finalize their filings due to this disruption.
Find a New Accounting Service: Bench suggests migrating to Kick, a new accounting platform that has promised to help former Bench users regain access to their financial data.

Why Did Bench Shut Down?

Funding and Management Issues

Despite raising substantial capital, including a $60 million Series C round in 2021, Bench faced challenges. The sudden departure of Ian Crosby, the CEO, and ongoing leadership issues may have contributed to the company’s unexpected closure.

“I’ve never seen anyone just shut down like that. That’s crazy.”
– Justin Metros, CTO of Radiator

Kick: The Potential Solution for Former Bench Users

Kick – A New Hope for Former Bench Customers

In the wake of Bench’s shutdown, Kick, a new accounting platform, is stepping in to help former Bench customers. With $9 million in seed funding from OpenAI and General Catalyst, Kick aims to provide seamless bookkeeping services and help businesses retrieve their lost data.

“We’re moving fast and are available to support many of Bench’s customers with their bookkeeping needs.”
– Conrad Wadowski, CEO of Kick

What This Means for the Future of Accounting Startups

The Fragility of SaaS Startups

The abrupt closure of Bench serves as a wake-up call to SaaS providers and accounting startups. For businesses that rely on these platforms, it’s a reminder of the importance of having backup plans and alternative providers in case of unforeseen shutdowns.

Key Takeaways from Bench’s Shutdown

Bench shut down without prior notice, affecting thousands of businesses that relied on its services.
Users are advised to download their data by December 30, 2024, and file a six-month IRS extension.
Kick, a new accounting platform, is stepping in to assist former Bench users.

Next Steps for Bench Users

If you’re a former Bench user, follow these steps:

Download Your Data: Ensure you download your financial and tax documents by December 30, 2024.
File an IRS Extension: If necessary, file for a six-month extension to avoid penalties.
Switch to a New Provider: Consider moving to Kick or another reliable accounting service.

Further Resources:

Conclusion

The closure of Bench has left thousands of small businesses without access to vital tax and accounting records. For those affected, it’s crucial to act quickly—download data, file for an extension, and migrate to a new platform. The shutdown also highlights the vulnerability of SaaS startups and the risks businesses face when relying on a single provider.

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Bench Shuts Down: Thousands of Businesses Affected

Bench Accounting Startup Shuts Down, Leaving Thousands Without Access to Tax and Accounting Docs