With the recent acquisition of Bench Accounting by Employer.com, many small business clients are wondering what this transition means for their bookkeeping needs. Bench’s abrupt shutdown left numerous clients with incomplete books for 2024, and while Employer.com plans to rehire Bench employees and restart its proprietary technology, the path forward is far from clear.
Here’s what you need to know and the steps you should take as a former Bench client.
The Current State of Employer.com’s Acquisition
Employer.com’s acquisition of Bench was reportedly made for an extremely low price. While this move gives hope that some of Bench’s services may eventually be restored, Employer.com faces significant hurdles:
- No Accounting Experience: Employer.com was originally founded as an HR and payroll company, with no prior history in bookkeeping or accounting. This means all the knowledge and expertise to run bookkeeping operations will initially have to come from former Bench employees, creating a steep learning curve.
- Financial Challenges: Bench’s shutdown likely stemmed from financial struggles. Although Employer.com might be well-funded, it will take time to correct course—if it’s even possible.
- Problematic Automation Model: Bench’s strategic focus on automating transactions has proven problematic. While automation can streamline processes, it often falls short in addressing the nuanced needs of small business bookkeeping. This same reliance on automation has contributed to financial struggles for other companies in the industry.
- Service Disruption: Rebuilding operations and regaining client trust will require significant time and effort, leaving current and former Bench clients in limbo.
Steps to Take Now
- If You Prepaid for Services:
- Contact Employer.com immediately to determine whether your remaining balance will be applied to completing your bookkeeping or refunded. Be firm in requesting clarity about timelines for work completion or refunds.
- Retrieve Your Data:
- Secure copies of any financial data or reports that Bench had completed for you. This is critical to ensure continuity with a new provider or for your own records.
- Assess the Risks of Staying with Employer.com:
- While Employer.com may eventually stabilize operations, the lack of accounting experience and current disruption should give you pause. Ask yourself if your business can afford to wait while they sort out their processes.
- Find a Trusted Bookkeeping Partner:
- Look for a bookkeeping provider with a proven history in the industry, standard tools like QuickBooks or Xero, and strong customer satisfaction. Stability and scalability are key to avoiding future disruptions.
Why Bench Likely Shut Down Abruptly
Although the exact reasons for Bench’s closure haven’t been disclosed, financial instability is the most probable cause. Operating a bookkeeping business requires substantial resources, and Bench’s proprietary technology and aggressive pricing model may have created unsustainable overhead. Additionally, their focus on automating transactions, while innovative, likely fell short in meeting the complex and varied needs of small business clients. These challenges, coupled with growing client dissatisfaction, likely led to their downfall.
Moving Forward: Don’t Wait
The uncertainty surrounding Employer.com’s ability to stabilize Bench’s services means now is the time to take proactive steps:
Ensure Your Books Are Up-to-Date: Delays in bookkeeping can lead to penalties and missed opportunities for financial insights.
Choose a Partner with Experience: Select a provider with a long track record of serving small businesses and a reputation for reliability.
Avoid Proprietary Platforms: Opt for firms using industry-standard platforms, making it easier to transition providers in the future.
Why Bookkeeping Express (BKE) Is the Solution You Need
At BKE, we specialize in helping small businesses maintain financial clarity and control. Here’s why former Bench clients trust us:
- Proven Stability: With decades of experience, we’ve successfully served over 4,000 franchises and small businesses.
- Standardized Tools: We use widely accepted platforms like QuickBooks and Xero, ensuring your data is always portable.
- Reliable Systems: Our scalable, repeatable processes guarantee accuracy and timeliness, no matter your business size.
- Customer-Centric Service: Our clients’ satisfaction is our top priority, and it shows in our reviews and long-term client relationships.
Don’t Let Disruption Derail Your Business
The sooner you take control of your bookkeeping, the sooner you can focus on running your business. Contact BKE today to learn how we can provide the reliable, professional bookkeeping services your business deserves.