Bench Accounting Shut Down: What Customers Need to Know & Alternatives

On December 27, 2024, Bench Accounting announced it was shutting down, putting thousands of small business owners in a difficult position just ahead of tax season. Bench clients will face many high-pressure decisions in the coming days, and we hope this article will alleviate some of your stress by empowering you with the information you need to move forward.

While details had been scarce for a couple of days, Bench's main page updated clients with this message on December 30, 2024: "We’re excited to share some important news: Bench is being acquired by Employer.com. Your service will continue seamlessly with the platform you’ve always trusted. To continue, please log in." Once clients log in, they must either consent to transfer ownership of their data from Bench to employer.com, a relatively new company with an unproven track record, or opt-out and download their data. Opting out suspends your services and indicates you will not be refunded. Before the acquisition was announced, Bench said clients could access their data from December 30, 2024, to March 7, 2025. 

This article, updated regularly, will inform you about the latest Bench developments and what its former clients can do to fulfill their tax obligations in less-than-ideal short-term conditions. 

Why is Bench Shutting Down?

While it is unclear what the precise reason or series of events that led to Bench's closure was, Ian Crosby, a co-founder who had previously left the firm, offered some insight via social media: "I had been battling with some of the board members over strategy. They wanted me to take the company in a new direction that I thought was a very bad idea. I wanted to continue with what was working and with what our partners had signed on to distribute. I was intransigent."

Analysis and other insights emerging from Bench's closure and acquisition shouldn't distract you from important decisions you must consider. Do you risk your business's financial future on an unknown entity in employer.com, or should you embrace other proven financial firms in continuous operation? 1-800Accountant has served over 100,000 small businesses with an innovative mix of accounting experts and technology since its founding a decade ago. 

If you choose to use a different financial services firm, they must be capable of ensuring a seamless transition from Bench. 

If I pre-paid for Bench, can I get a refund?

If you choose to use a different financial services provider, Bench will not provide a refund for the services you paid for. While this is understandably upsetting, you may be able to take action depending on when you purchased services. 

If you purchased services from Bench within the last 90 days, you may be able to file a chargeback with your credit card company. We suggest contacting your credit card institution immediately for more information and to potentially begin the chargeback filing process. 

Should I file an extension for my 2025 taxes if Bench was doing my books?

Whether you should file an extension for your small business will depend on numerous factors, including the overall complexity of your finances. Filing for a tax extension can be tremendously beneficial. It can give you the additional time you need to get your paperwork in order as you deal with this sudden transition from Bench to a new financial services provider.

Speak with small business tax professionals if you're struggling with the decision to file a tax extension. 

Finding the Right Bench Accounting Alternative for Your Business

1-800Accountant, America's leading virtual accounting firm, is ready to help fast to ensure you last. For a decade and counting, our full-service bookkeeping, payroll, and accounting solutions, powered by real bookkeeping, payroll, and accounting professionals, ensure compatibility with your current books, error-free tax preparation and filing, and smooth, reliable payroll each period. And if you require a custom solution outside our core financial services, we have forged strategic partnerships with leading financial institutions to ensure you're covered. Learn more about our recent partnership with LegalZoom to grasp the scope and scale of our flourishing operations.

Schedule a quick consultation—usually 30 minutes or less—to learn how we can help you get off the bench and back in action quickly!