Bench Accounting Failed, Now What?
2 days ago, the accounting startup Bench failed. They failed in such a way that left thousands of customers hanging just before year-end. Most likely the books of these customers were updated through November 2024 at best and completion of year-end books would not be completed till some time in January 2025. That means all these customers are left without year-end financials just before tax season. What a nightmare!
Their recommendation? Another accounting startup that has only just started raising money. How long before they post the same message that Bench did? It doesn’t seem like a great idea to trust your books to a startup that has not yet proven to be profitable and self-sustaining without raising more money.
Bench lured in thousands of customers with their dirt cheap (too good to be true) rates that proved to be unsustainable. The startup they recommended charges even less. Only time will tell if they last along with other accounting startups trying to automate everything.
If you were a customer of Bench, here is what to do next.
If you were left hanging in the recent shutdown of Bench, you have little time to get organized before year-end, so act quickly. Here is a checklist of what you should do now.
Find out how current your books are. Were they completed through November 2024 or are they further behind? It’s not uncommon for your books to be further behind, especially if you have delayed providing information they may have needed.
Download your data. You’ll only have until March 7th to download your data. Download your current and prior year financials for as far back as possible. This will be needed for tax audit purposes as well as transitioning to a new accounting firm.
Find new accounting firm. You’ll need someone who can complete your books through year-end 2024. Preferably not a start up that may also fail. Many thousands of other customers will be looking for an accountant too. It’s difficult to do this during tax season, so acting now is your best bet. Finding a firm that does tax as well is a smart move if Bench was handling your income tax returns. We are taking on new ecommerce clients now. Make a new client intro call today to get your books completed through year-end.
Find a tax preparer. You’ll need someone to prepare your tax return. Chances are you’ll also need an extension to get your books in order if they are further behind than November 2024. This is also hard to do during tax season, so act now. We are also taking on new tax clients.
Try to get a refund. If you paid in advance for annual account and/or tax, you should request a refund immediately. If Bench does not provide a refund, you may have recourse to your credit card provider or bank for services paid for but not rendered by Bench.
If you got caught up in this mess, I am very sorry. It’s extremely disrespectful to their entire customer base to have done this and left customers hanging at year-end.