December 27, 2024: A Sudden and Disruptive Move
In a shocking turn of events, Bench, a leading provider of software-as-a-service (SaaS) for small and medium-sized businesses in the United States and Canada, has announced that it will cease operations effective December 27, 2024. The company’s website currently displays a notice informing customers about the shutdown, stating that they will no longer have access to the Bench platform.
The Shutdown: A Surprise to Customers and Investors
The news of Bench’s sudden shutdown has left thousands of businesses in the lurch, with many still using the platform for their bookkeeping and tax reporting needs. According to a snapshot saved by the Internet Archive, Bench had boasted over 35,000 U.S. customers just hours before its closure.
Bench was founded in 2012 and had raised $113 million from prominent backers such as Shopify and Bain Capital Ventures. The company’s platform provided users with an easy-to-use solution for storing and managing their financial documents, including bookkeeping and tax reporting records.
A Shocking Move: What Happened to Bench?
The reasons behind Bench’s abrupt shutdown are unclear, but it is evident that the company has faced significant challenges in recent years. According to co-founder Ian Crosby, who posted on LinkedIn today, he had been replaced by unnamed board members who wanted to bring in a new professional CEO to take the company in a different direction.
Crosby alleged that this change in leadership was a "warning for VCs [venture capitalists] that think they can ‘upgrade’ a company by replacing the founder. It never works." He expressed his sadness about the shutdown and hopes that the story of Bench will serve as a cautionary tale for investors who believe they can improve a company’s prospects by changing its leadership.
What Happens Next?
In light of the shutdown, Bench has provided its customers with guidance on what to do next. According to the notice posted on their website, customers are advised to file a six-month extension with the IRS to find an alternative bookkeeping partner. Additionally, they will be able to download their data by December 30 and have until March 2025 to do so.
Bench has also recommended that its users migrate to Kick, a new accounting startup that announced a $9 million seed raise in October 2024. The company’s CEO and founder, Conrad Wadowski, has posted a message on LinkedIn assuring former Bench users that Kick is "working to get your financials back in your hands."
The Impact of Bench’s Shutdown
Bench’s shutdown has sent shockwaves through the accounting software industry, leaving many customers scrambling to find alternative solutions. The company’s sudden closure raises questions about the stability and reliability of SaaS providers, particularly those that have received significant funding from investors.
As the news spreads, current and former customers are expressing their concerns on social media, with some lamenting the loss of their financial data stored on the platform. Others are criticizing the company for its abrupt shutdown, citing the disruption it has caused to their businesses.
What’s Next for Bench’s Customers?
In the coming weeks and months, Bench’s customers will need to navigate the transition and find a new bookkeeping partner. While some may choose to migrate to Kick or other alternative platforms, others may opt to seek out more traditional accounting solutions.
As the industry adjusts to this sudden change, it is essential for businesses to prioritize their financial data security and continuity. This may involve taking steps to safeguard their financial information, such as downloading their data from Bench’s platform before its closure.
Conclusion
Bench’s sudden shutdown has left a void in the accounting software market, leaving customers and investors alike wondering what went wrong. As the industry navigates this challenging period, it is crucial for businesses to prioritize their financial security and continuity.
While the reasons behind Bench’s closure remain unclear, one thing is certain: the company’s abrupt shutdown serves as a reminder of the importance of stability and reliability in SaaS providers.
