The sudden shutdown of Bench Accounting during the holiday season and its quick acquisition by Employer.com have left thousands of small business owners in a challenging position. For many, this disruption couldn’t have come at a worse time, with year-end financials and tax preparations looming. Business owners are now left scrambling to secure their financial records and evaluate their options.
Bench’s sudden closure on December 27th, followed closely by the announcement of its acquisition on December 30th, has only deepened the uncertainty for its clients. Founded 12 years ago, Bench grew to employ over 600 people, served more than 1,100 clients, and raised over $113 million in funding. Despite these achievements, recent reports of declining service quality and internal challenges suggest deeper issues within the company. Declining service quality, forced yearly subscriptions, and the departure of former CEO Ian Crosby over the years point to underlying challenges at Bench. These issues leave small business owners questioning the company’s continuity and reliability.
What We Know About Employer.com
Employer.com, a relatively new company specializing in payroll services, has stepped in to acquire Bench. However, several factors raise concerns about the future of Bench’s services:
- Limited Scope in Payroll Services
Employer.com’s primary focus is on payroll and workforce management, which differs significantly from bookkeeping and accounting. This raises concerns about whether the company can provide the same level of specialized financial expertise that Bench’s diverse client base requires, particularly for industries like eCommerce.
- M&A Strategy and Rushed Acquisition
Employer.com, a new player in the market, appears to be employing an M&A aggregation strategy: acquiring Bench at a low cost with plans to streamline operations, enhance technology, or improve management. The rushed nature of the acquisition—reportedly finalized just days after Bench’s abrupt shutdown—has raised concerns about the long-term intentions and preparedness of Employer.com to handle the complexities of this transition.
Why Bench Clients Are Concerned
Many long-time Bench clients have expressed frustration over declining service quality in recent years. Issues such as delayed responses, errors in financial reporting, and limited support for industries like eCommerce have left business owners questioning the value of staying. Additionally, reports of Bench forcing users into yearly subscription models shortly before the shutdown have further eroded trust.
For eCommerce businesses in particular, Bench’s inability to accurately track Cost of Goods Sold (COGS) has been a significant pain point. Relying on cash-based accounting with year-end adjustments has made it nearly impossible for these businesses to get an accurate picture of profitability throughout the year.
Practical Steps for Bench Clients
If you’re a Bench client, here’s what you can do to navigate this transition effectively:
- Retrieve Your Financial Records
Bench clients have until March 7th, 2025, to download their financial data. Be sure to save all critical files, such as closing balances, opening balances, and any uploaded documents, to ensure you have access to your records.
- Consult a Tax Professional and Consider a Tax Extension
If completing your books on time seems difficult, consider discussing a tax extension with a professional. This can help you avoid penalties while giving you more time to manage your finances.
- Explore Accounting Alternatives
Given the uncertainty around Employer.com’s ability to handle Bench’s services effectively, now may be the ideal time to consider alternative accounting solutions that align more closely with your business needs. For instance, Fynlo provides a completely free accounting platform equipped with advanced features such as personalized invoicing and comprehensive financial management tools, click here to learn more.
Looking Ahead
The Bench shutdown and acquisition have created a period of uncertainty for thousands of businesses. While Employer.com has promised continuity, their lack of experience in bookkeeping and the rushed nature of the acquisition leave many unanswered questions. For businesses needing reliable, specialized accounting support—particularly those in eCommerce—this is an opportunity to find a solution that better meets your needs.
Stay informed, act quickly to secure your financial records, and explore options that will give you the confidence and stability to move forward.
