Vancouver-based bookkeeping service Bench Accounting has announced its sudden closure, putting hundreds of staff out of work and forcing clients to seek alternatives just days from the end of the year.
The company that has described itself as North America’s largest bookkeeping service for small businesses posted a “notice of service closure” on its website.
It said that as of Friday the platform was “no longer accessible.”
“We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition,” it said.
Bench has previously said it had more than 600 employees, more than 12,000 U.S.-based customers and had received investor funding of US$113 million.
It said it moved to Vancouver and changed its name to Bench in 2013, having started out in 2012 as 10sheet Inc in the U.S.
Calls to Bench’s Vancouver office went to voice mail and did not immediately receive a response.
B.C.‘s Minister of Jobs, Economic Development and Innovation Diana Gibson said in a statement Friday that “our thoughts go out to the people who have lost their jobs, especially during the holidays.”
“It’s disappointing any time we hear of a business closing … as this is a private business, I don’t have any information about why it’s closing,” she said.
She added that B.C. had a “strong financial tech sector,” and the government would continue to support those businesses.
Bench’s website said customers would be told how to access their data by Dec. 30, and that the material would be available for download until March 7.
”(You’ll) be able to enter your Bench login credentials to download your current and prior year-end financials, as well as any documents you’ve uploaded such as receipts and bank statements,” it said.
It said customers should file for a tax extension to get extra time to find a new bookkeeper to file their taxes.
The company’s former CEO and co-founder Ian Crosby released a statement on social media on Friday, saying he was “very sad” about the closure.
But Crosby, who said he was ousted by the company’s board about three years ago, said there was a lesson in the fate of the company.
“I hope the story of Bench goes on to become a warning for VCs (venture capitalists) that think they can ‘upgrade’ a company by replacing the founder. It never works,” he said.
The University of British Columbia Sauder Business School alumnus said he had been avoiding speaking publicly about Bench since his exit, but wanted to make a statement in light of the company’s demise.
He said that in 2021 he had been battling with some board members over their strategy for a “new direction” that he thought was a “very bad idea.”
“Rather than continuing to fight with me, they opted to just replace me, thinking that they could run the company better themselves,” he said.
“I was totally convinced that their approach would destroy the company. I opted to resign rather than fight.”
Kaz Nejatian, COO of Bench investor Shopify, agreed with Crosby.
“Bad investors destroyed a great Canadian company by replacing the founder with so-called professionals,” Nejatian said on social media platform X.
Other bookkeeping companies were quick to reach out to Bench’s former clients, with rivals such as Acuity and Better Bookkeeping making reference to Bench’s closure in social media pitches.
Rival companies also commented on complaints by Bench clients, offering their services.
This report by The Canadian Press was first published Dec. 27, 2024.
