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VANCOUVER – Vancouver-based accounting service Bench Accounting has announced its sudden closure, leaving hundreds of employees out of work and forcing clients to look for alternatives just days before the end of the year.
VANCOUVER – Vancouver-based accounting service Bench Accounting has announced its sudden closure, leaving hundreds of employees out of work and forcing clients to look for alternatives just days before the end of the year.
The company that has billed itself as the largest small business accounting service in North America has posted a “service closure notice” on its website.
It said the platform was “no longer accessible” as of Friday.
“We know this news is abrupt and could cause disruption, so we want to help Bench customers navigate the transition,” the company said.
Bench has previously said it has more than 600 employees, more than 12,000 U.S.-based customers and has received $113 million in investment financing.
The company said it moved to Vancouver and changed its name to Bench in 2013 after starting as 10sheet Inc in the US in 2012.
Calls to Bench’s Vancouver office went to voicemail and were not immediately answered.
B.C.’s Minister of Employment, Economic Development and Innovation Diana Gibson said in a statement Friday that “our thoughts are with those who have lost their jobs, especially during the holidays.”
“It’s disappointing every time we hear of a business closing… because this is a private business, I don’t have any information as to why it’s closing,” she said.
She added that B.C. had a “strong financial technology sector” and the government would continue to support those companies.
Bench’s website stated that customers would be told how to access their data by December 30, and that the materials would be available for download until March 7.
“(You will) be able to enter your Bench login details to download your current and previous year-end financial data, as well as any documents you have uploaded, such as receipts and bank statements,” the report said.
It said customers should apply for a tax deferral to gain additional time to find a new accountant 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 of directors about three years ago, said there was a lesson in the company’s fate.
“I hope Bench’s story will become a warning to VCs (venture capitalists) who 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 has not spoken publicly about Bench since his departure, but wanted to make a statement in light of the company’s demise.
He said he fought with some board members in 2021 over their strategy for a “new direction” that he thought was a “very bad idea.”
“Instead of continuing to fight with me, they chose to simply replace me because they thought they could run the company better themselves,” he said.
“I was completely convinced that their approach would destroy the company. I chose to resign rather than fight.”
Kaz Nejatian, COO of Bench investor Shopify, agreed with Crosby.
“Bad investors destroyed a major Canadian company by replacing its founder with so-called professionals,” Nejatian said on social media platform X.
Other accounting firms quickly reached out to Bench’s former clients, with rivals such as Acuity and Better Bookkeeping referencing Bench’s closure in pitches on social media.
Rival companies also commented on complaints from Bench customers offering their services.
This report by The Canadian Press was first published Dec. 27, 2024.
The Canadian Press