Bench Accounting, a prominent Vancouver-based bookkeeping service for small businesses, has unexpectedly closed its doors, leaving 450 employees without jobs and 11,000 clients searching for alternative bookkeeping solutions.
Key Details
- Closure Announcement:
The platform was officially shut down on December 27, 2024, with the company issuing a brief statement expressing gratitude for its clients’ 13 years of support but offering little explanation for the sudden shutdown. - Scale and Impact:
Founded in 2012 by Ian Crosby, Bench grew to serve small businesses across the U.S., employing over 650 staff at its peak and raising over $100 million in funding from investors like Shopify. - Timing Concerns:
The closure during the crucial tax season has left clients in a difficult position, heightening the challenges for small businesses dependent on Bench’s bookkeeping services.
Leadership’s Statement
Former CEO Ian Crosby addressed the shutdown on LinkedIn, attributing the closure to difficulties in the venture capital ecosystem. Crosby also called for reflection on the pressures of scaling in the tech industry, expressing hope that Bench’s challenges could provide lessons for other startups and investors.
Broader Implications
- Tech Sector Caution:
Bench’s rapid growth and sudden collapse highlight the risks of overreliance on external funding in the tech industry. - Small Business Disruption:
The void left by Bench’s closure could impact thousands of small businesses struggling to find reliable bookkeeping support during a critical financial period.
The unexpected end of this Vancouver-based success story underscores the volatility of the tech sector and raises important questions about the sustainability of high-growth startups in challenging economic times.
