Bench.co Sudden Shutdown: How to Protect Your Business

Bench.co Sudden Shutdown: What Happened?!

On December 27, 2024, Bench Accounting, a popular online bookkeeping service for small businesses, suddenly shut down its platform. Bench had built a reputation as an affordable and user-friendly service, but the sudden closure left over 11,000 businesses scrambling to secure their financial records.

According to Bench’s website, on the day of closure, customers had until March 7, 2025, to download their data. Additionally, they recommended that their clients transition to other bookkeeping services. However, just days after the shutdown, Employer.com swooped in to acquire the company and plans to restore the platform. Despite the acquisition, many business owners are understandably concerned about this unexpected disruption during their busiest time of year—tax season.

While this acquisition may have been a saving grace for Bench’s clients, it’s important to approach this new chapter with caution. Acquisitions often come with growing pains, such as potential changes in service quality, staff turnover, or a shift in company priorities. Frankly, business mergers and acquisitions are often a breeding ground for uncertainty amongst clients and staff.

The Risks of Proprietary Software

This situation serves as a reminder of how critical it is to have control over your financial data and use reliable software. When your records are tied to proprietary software, you risk losing access if the provider shuts down. If an accounting firm requires you to switch to their proprietary software, my suggestion is to politely decline and continue your research. Instead, find a company that relies on trusted accounting platforms such as QuickBooks or Xero.

The Importance of Owning Your Financial Files

Finding an accounting partner that doesn’t take ownership of your financial files is equally important. You wouldn’t believe the number of times I’ve heard the phrase, “I want to give you access to my accounting file so you can tell me what we’re doing wrong, but I can’t because my Accountant owns the file, and I don’t want them to know I’m vetting other options.” Yikes! Your files should always be in your business’s name and owned by you. This secondary safety net gives you peace of mind that your data is secure and accessible no matter what happens. 

Partner with an Accountant Who Prioritizes Your Security

If you’re looking for a bookkeeping partner that prioritizes your business’s security and success, take the first step by scheduling a meeting with an Ignite Spot Accountant. We’re here to help small businesses thrive without the fear of losing control of their financial records.

Note: Information in this blog is based on available sources as of January 8, 2025. For the latest updates, refer to official statements from Bench Accounting and Employer.com.