Bench Accounting Has Closed, What to Do Next

Bench Accounting, a Vancouver-based fintech company specializing in online bookkeeping services for small businesses, abruptly ceased operations on December 27, 2024. We previously reviewed this product in March of 2024. Bench had positioned itself as a hybrid solution, combining human bookkeepers with software to provide small business owners with streamlined bookkeeping and financial reporting. Over the years, Bench served tens of thousands of clients and raised significant funding, including over $100 million from investors like Altos Ventures and Bain Capital Ventures.

It was announced at the same time that Bench is being acquired by Employer.com, a San Francisco-based workforce management and business solutions provider. As of December 30, 2024, customers have access to their financial records again, but they have been given a deadline of March 7, 2025 to move to an alternative service. It’s unclear what the future of Bench is under its new owner.

Why did Bench Accounting close?

The exact reasons for Bench’s closure remain unclear, but several factors may have contributed. In December of 2021, Ian Crosby, Bench’s co-founder and former CEO stepped down. His departure reportedly stemmed from disagreements with the board over the company’s strategic direction. This change in leadership may have disrupted the company’s vision. The financial technology space is also highly competitive, with rising pressure from automation-driven platforms and hybrid models that combine software with human support. There’s also speculation about sudden financial or operational crises, but the company has not disclosed specific details. 

What Now?

If you’re using Bench Accounting, you’ll definitely want to first download all your financial records, including monthly financial statements, transaction details, tax documentation, and any communications with your bookkeeper. 

Next, you’ll need to start your search for a new accounting software or bookkeeping service. Bench is offering an exclusive onboarding deal to transition to Kick for their current users. However, we recommend doing your due diligence to make sure it’s really right for you. Instead of rushing through the process to make sure you can get your accounting set up in time for the tax filing deadline, you can file for a tax extension (just make sure you do this as soon as possible to avoid a penalty for late filings). 

Determine what you need in a replacement. What did you rely on Bench for? If you find that you didn’t actually need as much as Bench offered, this could be an opportunity to downgrade to a simpler accounting software and save some money. Or, if you find that you actually need more specialized support, you can upgrade to a more full-service accounting firm. 

Here are some options to consider: 

• For Full-Service Bookkeeping- QuickBooks Online + Live: QuickBooks Online is one of the most popular accounting softwares on the market. Aside from its base accounting platform, it also offers QuickBooks Live, which matches you with a certified bookkeeper who can help you do full-service bookkeeping, assisted bookkeeping, or just a one-time cleanup of your books. If you relied on Bench for all your bookkeeping and want a similar level of support, QuickBooks Live Expert Full-Service Bookkeeping could be a solid option for you.

  QuickBooks Online itself has four tiers, ranging from $35/month to $235/month. Live Expert Assisted is available with any QuickBooks Online plan. A one-time expert cleanup has a $1500 fee, and full-service bookkeeping starts at $300/month.

*Note: If you’re spooked by the sudden shutdown of Bench Accounting, you can rest assured that QuickBooks has been around for over 40 years and is widely regarded as one of the most reliable and trusted accounting solutions.

• For a Hybrid Option- Kick Accounting: Kick is an AI-driven accounting platform that automates bookkeeping tasks for entrepreneurs. Kick’s AI-driven approach aims to reduce manual bookkeeping efforts, minimize audit risks, and enhance financial confidence for business owners. Users connect their bank accounts, credit cards, and financial apps to Kick, and Kick automatically categorizes transactions in real-time. The platform also generates financial statements that offer insights into profitability and expenses. While it doesn’t offer full dedicated bookkeeping services like Bench, it has optional human reviews when needed.
  
  Kick has four pricing tiers: a Free tier, a $35month Basic tier, a $125/month Plus tier, and custom-priced Enterprise tier. For current Bench users, Kick is offering a free Bench migration with personalized onboarding calls and 20% off their Kick Plus plan.

• For Self-Managed Bookkeeping- FreshBooks: FreshBooks is designed primarily for small businesses and service-based professionals. It’s known for its ease of use, client-focused features like built-in time tracking, and strong invoicing capabilities. However, note that it’s completely self-managed, so while you have automation and categorization tools at your disposal, you’ll need to do some bookkeeping tasks yourself. This is a great option if you want to start taking more control over your finances and have a more cost-effective solution compared to full-service providers.
  
  FreshBooks offers four tiers: Lite at $19/month, Plus at $44/month, Premium at $60/month, and Select with custom pricing. 

Final Thoughts

The closure of Bench Accounting has left many customers in a difficult position, but there are numerous alternatives available to fill the gap. Whether you prefer fully managed bookkeeping or software-driven solutions, it’s essential to act quickly to ensure a smooth transition. With careful planning and the right tools, businesses can continue to manage their finances effectively in 2025 and beyond.

This is one more reminder of how difficult it can be to choose the right solutions for a small business. Companies and products that appear solid can change or even disappear overnight. That’s why we’re committed to providing up-to-date information on the products we review here at Haystack. Stay tuned; we’ll keep you updated on what’s happening with Bench and the rest of the products you see here.