Thousands of firms lose access to accounting and tax documents when Bench goes down

Bench, a Canadian accounting startup offering SaaS solutions for small and medium-sized businesses, has suddenly ceased operations, according to a notice on its website.

“As of December 27, 2024, the Bench platform will no longer be accessible,” the statement reads. “We understand this abrupt news may disrupt your business, and we’re dedicated to helping customers navigate this transition.”

The company’s website is now offline except for the announcement, leaving thousands of businesses stranded. Bench, which reportedly served over 35,000 U.S. clients, had its website archived just hours before shutting down.

Having raised $113 million from major investors like Shopify and Bain Capital Ventures, Bench’s platform helped users manage bookkeeping and tax documents. The unexpected closure has left customers reeling. Justin Metros, CTO and co-founder of Radiator, expressed disbelief, noting that his company’s financial records are still stored on Bench despite no longer using the platform. “I’ve never seen a company shut down like this,” he said.

Social media users also voiced frustration, with one customer, who recently switched from QuickBooks to Bench, expressing anger over the abrupt shutdown. Bench advised clients to file a six-month IRS extension to find a new bookkeeping provider. Customers have until December 30 to download their data and until March 2025 to complete the process.

The notice suggested Kick, a new accounting startup, as an alternative. Kick, which raised $9 million in October 2024 from backers like OpenAI and General Catalyst, is offering to assist Bench customers. Kick’s CEO, Conrad Wadowski, shared on LinkedIn that the company is “working to get your financials back in your hands.” However, details about any prior relationship between Bench and Kick remain unclear.

Founded in 2012, Bench employed over 600 staff and was part of the TechStars accelerator. It secured $60 million in Series C funding in 2021 but saw its co-founder and CEO, Ian Crosby, step down shortly afterward. Crosby, on LinkedIn, expressed sadness over the shutdown, blaming the board for replacing him with a “professional CEO” to steer the company in a different direction.

“I hope Bench’s story serves as a warning to VCs who think replacing founders is a formula for success. It rarely works,” Crosby wrote.