On December 27, 2024, Bench Accounting abruptly shut down, with zero notice to its customers, mostly small businesses. Once a thriving accounting platform boasting over 35,000 U.S. customers and a history of $113 million in venture capital funding, Bench’s closure has left small businesses contending with the fallout.
This shutdown provides critical lessons small business owners need to understand to safeguard their finances and operations.
Why Bench’s Shutdown Matters for Small Businesses
Bench’s closure has left its customers and employees scrambling. The surprising closure highlighted two issues that small businesses face when relying on third-party platforms for essential services.
1. Own Your Data
2. Research Potential Service Providers Thoroughly
After Bench’s shutdown notice, scammers immediately began targeting business owners looking for new accounting solutions.
Fake websites posing as reputable accounting platforms have emerged, creating additional stress and potential security threats for affected users.
Rapid decision-making during business disruptions should never replace thorough research and verification processes when choosing new service providers.
Seamless Transitions with Thryve Group
Lessons Learned from Bench Accounting’s Shutdown
Entrepreneurs can learn from the Bench Accounting shut down. Here’s how small businesses can avoid similar disruptions in the future:
1. Take Control of Your Financial Data
To establish ownership and access to your financial data moving forward, you’ll want to:
Request Regular Backups
Use systems that allow you to download accounting data. Make it part of your routine. Schedule a data backup quarterly to ensure you’re always covered.
Reputation
Small businesses may want to consider established brand names for their cloud accounting (such as Xero and Quickbooks Online) to reduce their risk. Although not perfect, these platforms have generated their reputation for reliability over decades.
Understand the Terms
Familiarize yourself with the terms of service for any platform you use, particularly regarding data availability in the event of service changes or shutdowns.
2. Verify New Service Providers
Bench’s customers seeking accounting alternatives were met with scams disguised as credible services.
Protect your small business from falling victim to these threats by:
Researching Providers
Look for reviews, testimonials, and trusted sources when evaluating new accounting platforms. Beware of brands with little to no digital footprint or vague promises.
Secure Your Data
Be cautious about sharing sensitive information with lesser-known platforms. Start with free trials or sandbox environments to validate their processes.
Leverage Recommendations
Trusted platforms like QuickBooks or Xero offer robust solutions vetted by thousands of businesses globally.
3. Plan for Service Disruptions
Users rarely know what’s going on internally with a provider they’re using. Whether it’s a competitor acquiring your platform or a sudden shutdown, it always pays to have a contingency plan.
Create a Service Backup List
Evaluate alternative tools that align with your needs—don’t wait until you’re forced to make a rushed decision.
Keep Clear Financial Records Offline
Retain hard copies or local PDF backups of critical reports like profit and loss statements, balance sheets, and tax filings.
Is Your Business Prepared?
Bench Accounting Alternatives
The Path Forward for Bench Customers
If you’re an affected Bench customer, consider evaluating multiple alternatives to their suggested Kick, such as QuickBooks and Xero.
Before selecting a new platform, confirm it offers the following features:
- Direct data export tools for long-term accessibility.
- Transparent terms of service that clearly outline user protections.
- Annual system audits or certifications to verify data safety compliance.
Enlisting the help of professional accountants can provide the support you need to work through any questions or concerns you have with the transition from Bench. Thryve Group provides personalized accounting services tailored to meet the needs of your unique business and will work with you as a strategic business partner.
Building Financial Resilience in Your Business
By implementing proactive strategies, businesses can achieve peace of mind even amidst unexpected challenges.
Here’s how to start building greater resilience today:
1. Schedule Monthly Finance Reviews
Regularly review financial performance to identify any irregularities or gaps in data.
2. Diversify Software Dependencies
Use versatile tools that integrate with other platforms, preventing lock-in scenarios.
3. Educate Yourself
Familiarize yourself with basic bookkeeping principles and continuously refine your processes through workshops, tutorials, or expert consultations.
Safeguard Your Business—Don’t Be a Cautionary Tale
The shutdown of a high-profile platform like Bench reminds us that even established businesses aren’t immune to collapse. Will this news change how you oversee your finances? For small business owners relying on accounting platforms, Bench’s lesson isn’t just about bookkeeping; it’s about data access and accountability across their business.
