Bench Accounting Closure: Insights & Opportunities for CPAs

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Table of Contents

Bench Accounting, a Vancouver-based firm that combined proprietary bookkeeping software with in-house services, once stood out as a go-to partner for thousands of small businesses. It raised more than $113 million in venture capital funding, partnered with well-known investors like Bain Capital Ventures and Altos Ventures, and served over 20,000 clients across the U.S. But in a surprise move on December 27, Bench announced its immediate closure, leaving users in a scramble—just days before year-end.

To add another twist, Bench was swiftly acquired by Employer.com, though details on what that means for customer data and the platform’s future remain sparse. Below is a look at how Bench started, what went wrong, and how CPA firms can step in to offer stability and expertise to businesses left in the lurch.

The Surprising Closure

Sudden Announcement: Bench took down most of its website, leaving only a closure notice. This caught hundreds of employees and thousands of customers off guard right before crucial year-end filings.
Impact on Customers: Many clients were forced to scramble for alternative bookkeeping or accounting solutions to handle immediate tax and compliance deadlines.
Data Retrieval: Bench has stated that customers can download their historical records—including financials and receipts—until March 7. They also advised clients to file for tax extensions to buy more time.

What Customers Said

Some businesses reported that Bench had been pushing them to switch to annual contracts in recent weeks, even as service quality reportedly declined. Others found that Bench’s software only supported cash-basis accounting, lacked features for managing payables/receivables, and didn’t handle complexities like prepaid expenses, unearned revenue, or inventory. These limitations became glaring as clients’ needs evolved.

Where It All Started

Bench was originally founded as 10sheet Inc. in 2010 by:

Ian Crosby
Jordan Menashy

Launched initially in the U.S., the company soon moved to Vancouver, Canada, rebranding as “Bench” in 2013. Over the years, Bench:

Built a strong user base of over 20,000 U.S. customers.
Grew its internal staff to around 650 employees at its peak.
Offered a suite of services, including monthly bookkeeping, expense tracking, and financial reporting.

They later rolled out additional products:

Pulse (2019): A cash-flow management tool.
BenchTax (2019): A tax preparation add-on built with Taxfyle.
Bench Banking (2021): An integrated financial service, pushing Bench further into fintech innovation.

Bench’s $113+ Million in Funding

Over its 12-year history, Bench secured multiple rounds of venture funding—more than $113 million in total. Some of the standout rounds included:

Seed (2013): $2M
2014: $1M from VCs and angel investors
Series A (2015): $7M led by Altos Ventures and Contour Venture Partners
Series B (2016): $16M led by Bain Capital Ventures
Series B-1 (2018): $18M led by iNovia Capital
Series C (2021): $60M led by Contour Venture Partners (focused on integrated banking services)

Bench’s high-profile investors had hoped the hybrid model of “tech + bookkeeping services” would transform small-business accounting. But as the company grew, it struggled to balance the cost of delivering hands-on service with the returns demanded by investors.

Ousting Founders and Internal Turmoil

Despite the large influx of capital, Bench faced internal shakeups:

Co-Founder Departure: Adam Saint, VP of Design, left in 2016.
CEO Ousted: Ian Crosby, Bench’s main founder and CEO, was reportedly removed by the board in 2021. Crosby contends that VCs wanted the company to pivot in ways he felt were unwise.
Key Resignation: Jordan Menashy, VP of Marketing and fellow co-founder, resigned in October 2024, just weeks before the closure.

Ian Crosby, reflecting on his ouster and Bench’s collapse, warned that replacing a founding CEO often doesn’t yield the “upgrade” investors hope for. He pointed to operational profitability concerns, an over-reliance on automation, and a lack of strategic direction as critical failings.

Customer Fallout and Competitors Step In

As Bench customers searched for new bookkeeping providers, rivals like Acuity, Better Bookkeeping, Kick, and Backyard Bookkeeper seized the opportunity to offer discounts and quick on-boarding services. Ironically, Bench’s own closure notice even suggested customers move to Kick, a newer accounting startup.

Why Bench’s Model Floundered

Cash-Only Focus: Bench primarily handled cash-basis accounting, leaving out robust accrual features.
Service Gaps: Lack of AP/AR tracking, inventory handling, and advanced expense management.
Operational Costs: The cost of maintaining in-house bookkeepers and constantly updating software wasn’t matching revenue growth.
Quality Control: Customers reported slow turnaround times and delayed monthly reconciliations in the company’s later stages.

How CPA Firms Can Step In (5 Practical Points)

Bench’s abrupt exit underscores the need for stable, responsive accounting solutions. For CPA firms ready to help, here are five ways to leverage this situation productively:

1. Create a Smooth Onboarding Path

Why: Former Bench users are in panic mode, needing immediate help.
How: Offer a simple step-by-step plan for data migration and set clear milestones for monthly and year-end processes.

2. Highlight Hybrid Expertise (Tech + Humans)

Why: Bench’s automation failed many when complex bookkeeping issues arose.
How: Showcase how you use software to automate repetitive tasks but rely on professional accountants for oversight, compliance, and advisory.

3. Focus on Data Security and Contingency

Why: Clients burned by Bench’s surprise shutdown want reassurance.
How: Communicate your backup procedures, encryption standards, and what you’d do if key software shuts down or changes ownership.

3. Tap Into Offshore Talent to Scale

Why: A sudden influx of clients can overwhelm existing staff.
How: Partner with MYCPE ONE, known for supporting CPA and accounting firms with offshoring solutions. We have offices in 20+ cities and more than 40 facilities across India and Phillipins and we have helped over 1000 CPA and Accounting firms to build there offshore teams, We can help you quickly add cost-effective, well-trained bookkeeping staff so your in-house team can focus on higher-value tasks.

4. Offer Long-Term Relationship Value

Why: Trust is a big concern after Bench’s collapse.
How: Provide regular check-ins, transparent pricing, and advisory services. Show that you’re here for the long run, not just short-term fixes.

MYCPE ONE: A Strong Ally for CPA Firms

At MYCPE ONE, we’ve seen firsthand how important it is for CPA and accounting firms to strike the right balance between technology and human expertise. We’ve always been about delivering:

Skilled Offshore Staffing: Our professionals can handle data entry, reconciliations, and other routine work, freeing your onshore team to focus on client relations and strategy.
Robust Tech + Human Intelligence: We prioritize a balanced approach—yes, we leverage technology for efficiency, but real people remain in control to ensure accuracy and personalized service.
Reliable Partnerships: We aim to build long-term relationships with our partner firms, supporting scalability and adaptability in a rapidly changing market.

With Bench’s closure, the need for stable, well-rounded services has never been clearer. By collaborating with MYCPE ONE, CPA firms can rapidly onboard new clients, maintain high service standards, and provide the kind of personalized care that fosters lasting trust.

Opportunity for Former Bench Employees

We understand that Bench has now been acquired by Employer.com. If you are a former Bench employee seeking new job opportunities or looking for a fresh start, we would be thrilled to welcome you at MYCPE ONE. We specialize in providing staffing solutions to U.S. and Canadian CPA and accounting firms, and we’re actively seeking talented professionals who are ready to take the next step in their careers.

By joining MYCPE ONE, you’ll have the chance to connect with a wide network of reputable firms and find the role that best aligns with your skills and ambitions. We’d love to help you explore new possibilities and make a smooth transition into your next chapter.

Looking Ahead

Bench’s downfall, coupled with its acquisition by Employer.com, reminds us that substantial funding and slick automation tools don’t guarantee sustainable success. Small businesses still demand reliable, flexible accounting solutions that adapt to their specific needs—especially during critical times like year-end filings and audits.

For CPA firms, the path forward involves taking a proactive stance: offering better communication, deeper expertise, and stable operational processes. By blending software efficiencies with thorough human oversight—and, if necessary, tapping offshore staffing solutions like MYCPE ONE—firms can turn Bench’s closure into a chance to grow their client base, strengthen their reputations, and provide the financial security that small businesses truly need.

Final Word

The sudden collapse of a once-promising bookkeeping platform is a wake-up call for everyone in the accounting industry. It’s proof that automation alone can’t replace the nuanced judgment and relationship-building that sets great CPAs apart. If you’re a CPA firm eager to help businesses left stranded by Bench, now is the time to step forward with a balanced, client-focused approach—and if you need the extra hands to do it, MYCPE ONE is here to help you scale with confidence.

CA Nemin Vora

Nemin Vora is a Chartered Accountant (equivalent to US CPA) and Tax Attorney, serving as the Offshore Success Advisor at Entigrity Solutions LLC. With over 7 years of experience working with Big 4s and public accounting firms across North America, he's the person you want to talk to when you're thinking about taking your accounting firm global. Nemin is a seasoned leader and a dynamic content creator, weaving stories and insights on tax, leadership, and life that resonate with a wide audience. This creative outlet not only showcases his depth of knowledge but also his ability to connect and inspire. He consults and speaks on various topics including Building Remote Teams, Remote Working, Offshore Staffing, Strategic Planning, Scalability of Accounting Practice, Cloud Accounting, Practice Management, and AI in Accounting. Outside of work, Nemin is a learner at heart, an actor on the stage, and a tech enthusiast.