Bench closes its doorways, leaving 1000’s of companies with out entry to accounting and tax paperwork

Bench, a Canada-based accounting startup that supplied software-as-a-service for small and medium-sized companies, has abruptly closed its doorways, in keeping with a discover posted on his website.

“We remorse to tell you that as of December 27, 2024, the Bench platform will not be accessible,” the discover stated. “We all know this information is sudden and will trigger disruption, which is why we’re dedicated to serving to Bench clients by way of the transition.”

The corporate’s total web site is at the moment offline aside from the discover, leaving 1000’s of companies within the lurch. Bench boasted of getting greater than 35,000 clients in the US simply hours earlier than it closed, snapshot exhibits recorded by Internet Archive.

Bench, which had raised $113 million from high-profile backers akin to Shopify and Bain Capital Companions, developed a software program platform to assist purchasers retailer and handle their accounting and tax submitting paperwork.

This determination comes as a shock to present and former clients. Justin Metros, co-founder and CTO of Radiatorstated years of his firm’s accounting and tax paperwork are nonetheless saved on the positioning, though he not makes use of the platform. He discovered of the shutdown from TechCrunch.

“I’ve by no means seen anybody cease like that,” Metros stated. “It’s loopy.”

Others are expressing their issues on social media, with a publication “As a buyer, I am upset” after migrating from QuickBooks to Bench.

Bench’s discover says its purchasers ought to file a 6-month extension with the IRS to “discover the correct accounting companion.” It additionally says clients will have the ability to obtain their information by December 30 and may have till March 2025 to take action.

The evaluate recommends to clients emigrate to Kick, a brand new accounting startup who announced its $9 million fundraising in October 2024 in a spherical led by OpenAI and Basic Catalyst. Kick CEO and founder Conrad Wadowski job a message on LinkedIn to former Bench customers about how Kick “works to place your funds again in your fingers.”

Bench didn’t reply to TechCrunch’s requests for remark on the time of publication. Wadowski didn’t instantly reply to a query from TechCrunch concerning the particulars of a attainable deal or different enterprise relationship he had with Bench earlier than the shutdown.

“As you’ve got seen from the web site, we’re transferring shortly and can be found to assist a lot of Bench’s clients with their accounting wants,” he informed TechCrunch.

Based in 2012, Bench employed greater than 600 folks, in keeping with a snapshot of his “About page”. The startup was backed by traders together with IT firm Sage, Contour Enterprise Companions and Altos Ventures. It was also a member of the TechStars accelerator.

Bench last lift $60 million in a Collection C funding spherical in 2021. Its co-founder and CEO Ian Crosby left shortly after.

Crosby published on LinkedIn in the present day that he was “very unhappy” to see Bench shut its doorways, alleging that he had been changed by unnamed board members who needed to herald “a brand new skilled CEO” to carry Bench into a unique path.

“I hope Bench’s story turns into a warning to enterprise capitalists who assume they’ll “enhance” an organization by changing the founder. It by no means works,” Crosby wrote.