Bench shutdown FAQs: All you need to know as a small business owner

What would you do if your bookkeeping service just… vanished?

No heads-up. Just a cold, impersonal notice: “We’re no longer in business. Good luck.”

Yes, we’re talking about the abrupt Bench shutdown.

That’s what happened when Bench Accounting ^[1] shut down on December 27, 2024. Thousands of small business owners—just like you—were left clueless, locked out of their accounts, and scrambling to figure out how to access their data with tax season imminent.

Amidst all this madness and bad news, here’s the good news: you don’t have to figure this out alone. This blog is here to guide you—packed with answers to your most pressing questions, solutions on migrating to a reliable Bench alternative, and steps to get your books back on track, fast.

1. What happened with Bench?

The short answer? Bench shut its doors without warning, leaving thousands of small business owners in a bind.

On December 27, 2024, Bench Accounting replaced its website with a stark notice announcing the immediate closure of its platform.

The sudden shutdown brought to light a critical issue for small businesses relying on bookkeeping services: vendor lock-in. By storing financial records in proprietary systems, businesses often lose control over their own data during service disruptions. Due to this dependency, customers suddenly found themselves locked out of their accounts, unable to access critical records just as year-end reporting and tax preparation were ramping up.

The reasons behind the shutdown were not disclosed by Bench. While many (customers and employees) speculate about financial struggles or operational issues, no official explanation has been provided.

One customer took to Reddit ^[2] to air their grievance and confusion, writing: 

“Our nonprofit just got an email from our accounting platform, Bench.co that they’re shutting down effective immediately the platform is gone. The email was sent today Dec 27, 10:39 am.

We just put down around 3k a few months ago for another full years of service. Shutting down a few days before the end of this year also means they aren’t going to close out the year, so it seems that we will have to re-pay another accountant to finish our 2024 books.

What do you recommend we do? How can we get our money back? Does anyone have some insight on this? Anyone been here before?”

Matt Palackdharry, founder of Kinetic Talents Inc., highlighted how painful the timing of Bench’s closure was for his business. He had just signed up to use the service, paying $5,535.50 in fees, only to see the service shut down before completing onboarding.

He stated: “You’re just stealing money from small businesses with how you are handling your shutdown.”.

Shortly after the announcement, Bench replaced the closure notice with a new screen, breaking the news that it had been acquired by Employer.com ^[3], a San Francisco-based HR and payroll company.

Although Bench’s website has since been restored since then and Employer.com has promised to revive the platform and provide data access, Bench has severely shaken its customers’ trust with the abrupt shutdown and an even more abrupt acquisition. 

As one frustrated customer shared on Reddit:
“They charged me around $3,500 on Dec 12th. I was going through onboarding and now can’t contact anyone. Want my money back for sure.”

The question now is: Will customers place their trust in Employer.com moving forward?

We’ll find out when we find out.

2. Should I consent to transfer my data to Employer.com?

If you’re staring at Bench’s new login screen, wondering whether to click “I Consent,” you’re not alone. It’s not an easy decision, and your choice hinges on two key factors: access and trust.

When deciding whether to consent to the transfer of your data to Employer.com, it’s important to evaluate the long-term implications. Vendor lock-in, where data is tied to proprietary systems like Bench’s, can restrict your access and create challenges during transitions or unexpected shutdowns. Opting for a bookkeeping service like CoCountant, that prioritizes data portability ensures your financial information remains accessible and secure, no matter the circumstances.

Why you might click “I Consent”

• Data access: By consenting, you’ll retain access to Bench’s system, giving you the chance to download critical financial records needed for tax prep and reporting.
• Breathing room: This temporary access buys you time to retrieve your data and explore alternative bookkeeping solutions without losing track of important documents.

Why you might not click “I Consent”

• Privacy concerns: Employer.com is an HR tech company, not a bookkeeping provider. If their privacy policy or data practices make you uncomfortable, this could be a reason to opt out.
• You’re ready to move on: If you’ve already decided to switch providers, you may prefer to download what’s available and leave Bench behind. Just note that the “Download Data” option might not provide immediate exports—some customers report delays until January 15, 2025.

What’s the best move?

1. Click “I Consent” to keep access—at least for now.
2. Log in and download all available data. Prioritize exporting anything tied to your year-end taxes and financial reports.
3. Once your export is complete, cancel your Bench subscription to avoid further charges.

This way, you maintain control over your financial records without committing to long-term dependence on Bench or Employer.com.

3. What happens to the services I’ve already paid for?

If you prepaid Bench for services, you’re likely asking: What happens to my money? Here’s what we know.

If you stay with Employer.com

Employer.com has stated that they’ll honor ongoing services for customers who consent to transfer their data.

Matt Charney, Employer.com’s Chief Marketing Officer, publicly reassured customers:

“We will revive Bench’s platform. Clients can expect continuity and full access to their data. The bookkeepers you trust are staying, and your financial records are safe.”

In theory, this means your prepayment will carry over, and they’ll resume where Bench left off.

If you opt out

Opting out means immediate suspension of services—and no refunds for unused months. Unfortunately, this leaves customers who prepaid for 2024 services in a tough spot, having paid for work that won’t be delivered.

What you can do

• Dispute recent charges: If you paid Bench within the last 60 days, contact your credit card company to dispute the charge. While the money won’t come from Bench, it’s a safeguard credit card companies provide for situations like this.
• Look for transition offers: Some bookkeeping providers (including CoCountant) are offering free Bench migration to ease the burden for former Bench customers.

4. How can I retrieve my financial data?

If you’re locked out of Bench, retrieving your financial data is likely your top priority. Employer.com has promised to restore access, but there are deadlines and delays you need to know about.

Step 1: Click “I Consent”

Start by clicking “I Consent” on the Bench login screen. This is required to regain access to your financial records.

Step 2: Request your data export

After consenting, you can request your financial data, but note that the export may not be available immediately. Employer.com has stated that data exports will be ready by January 15, 2025.

Step 3: Download and organize your records

Once your data is available, download everything, including:

• Year-end financial statements.
• Uploaded documents like receipts and bank statements.
• Any reports you’ll need for taxes or transitioning to a new service.

Step 4: Save data securely

Once you’ve downloaded your financial records, take the following steps to ensure they are secure and easy to access:

• Create a dedicated folder structure: Organize your files by year, category (e.g., receipts, invoices, tax forms), or client/project to make them easy to navigate.
• Use secure storage options: Save your data in multiple locations, such as a secure cloud storage service (like Google Drive or Dropbox) and an encrypted external hard drive, to prevent accidental loss.
• Maintain backups: Regularly back up your records to ensure you have duplicates in case of technical issues.
• Verify file integrity: Double-check that all files have been successfully downloaded and are readable.

Important deadlines to remember

• Data export availability: January 15, 2025.
  • This is the estimated date when requested data exports will be ready for download.
• Final access deadline: March 7, 2025.
  • After that, you may lose access to Bench entirely.

Retrieving your financial data from Bench is not simply about recovering lost records right now; it’s also a lesson in avoiding vendor lock-in in the future. Bench’s proprietary ledger system meant customers couldn’t seamlessly move their data to another provider without manual intervention. When you secure your records, consider transitioning to an open, widely accessible platform like QuickBooks Online to ensure you’re never caught off guard again.

5. I paid Bench to do my 2024 taxes. What should I do now?

If you had paid Bench to handle your 2024 tax filings, you need to act quickly to ensure your taxes are prepared correctly and on time. Here’s how to proceed:

Step 1: Decide if you’ll stay or switch

If you’re leaning toward staying, confirm that Employer.com’s plans for Bench meet your needs. Ask specific questions about their process, timelines, and ability to meet tax deadlines.

If you prefer to switch, act quickly to secure a new tax preparer. Many professionals stop accepting new clients as deadlines approach, so the earlier you start, the better your chances of finding someone reliable.

Step 2: Verify your data readiness

Make sure you have access to all the necessary financial data for 2024, including:

• Supporting documents like receipts, invoices, and bank statements.
• Year-end financial statements (A complete balance sheet and income statement for 2024).
• Detailed income and expense reports.

If any of this information is still with Bench, follow the above steps to export your data before their final access deadline.

Step 3: File an extension if needed

If you’re concerned about meeting tax deadlines due to the disruption, filing an IRS extension can buy you extra time:

• LLCs and S Corps: Extension deadline is March 15, 2025, moving the filing deadline to September 15, 2025.
• C Corps: Extension deadline is April 15, 2025, moving the filing deadline to October 15, 2025. Remember, extensions only give more time to file, not to pay. Submit any taxes owed by the original deadline to avoid penalties.

Step 4: Confirm other tax filings are on track

In addition to income taxes, don’t forget about:

• Quarterly estimated taxes: If your business was profitable in 2024, these payments might still apply.
• Sales tax filings: These are separate from income taxes and may require immediate attention.

6. Are there compliance deadlines I need to worry about?

Yes, and they’re coming up fast. Bench’s sudden disruption doesn’t pause your obligations, so staying on top of compliance deadlines is important. Missing these deadlines could result in penalties, late fees, or even compliance issues.

Here’s what you need to know:

Key upcoming deadlines

January 31, 2025:

• 1099 forms: These must be sent to eligible contractors and the IRS. Accurate records of payments to 1099 vendors throughout 2024 are essential for meeting this deadline.

Also read: 1099-NEC vs 1099-MISC: Differences, deadlines, and how-to’s

March 15, 2025:

• Income tax filing or extension for LLCs and S corps: Submit your taxes or file for an extension by this date.

April 15, 2025:

• Income tax filing or extension for C corps: Don’t miss this critical deadline for your business.

Ongoing:

• Sales tax filings: These vary by state and can be due monthly, quarterly, or annually. Confirm your specific deadlines to stay compliant.

What you need to meet these deadlines

• Complete and accurate records: Your 2024 books must be up to date. Incomplete data can derail filings and create unnecessary delays.
• Key financial statements: Ensure your income statement, balance sheet, and supporting documents are ready for review.
• A reliable partner: Work with a provider experienced in navigating tight timelines and compliance challenges. The right partner will not only understand your industry but also proactively guide you through the process to ensure nothing is overlooked.

7. What should I do if I’m behind on my bookkeeping from Bench but want to switch?

If Bench left your books incomplete (it definitely did), now’s the time to act. Waiting won’t fix the gaps, and with critical deadlines looming, catching up is non-negotiable.

Here’s what to do.

Step 1: Retrieve your Bench data:

If you’ve consented to Employer.com’s data transfer, log in and download your records following the steps mentioned above. Focus on:

• Transaction histories.
• Uploaded receipts.
• Year-to-date financial statements.

Step 2: Partner with a reliable provider:

A professional bookkeeping service like CoCountant can help you migrate from Bench for free, seamlessly while also offering free catch up on your 2024 books.

Step 3: Prioritize immediate needs:

Focus on what’s critical for the upcoming deadlines, like reconciling accounts, identifying unpaid invoices, and ensuring 1099s are ready.

8. How do I choose a new bookkeeping service?

So, Bench didn’t work out—and now you’re searching for a provider who will. But with countless options out there, how do you separate the real deal from the overpromisers?

When evaluating new bookkeeping providers, it’s essential to prioritize systems that allow full access and control over your financial data. Bench’s reliance on proprietary systems left many businesses locked in, unable to easily transition when services abruptly ended. Look for providers using open platforms like QuickBooks Online, which ensure your data remains portable and accessible, even if you decide to switch in the future.Here’s how to find a service that truly fits your business (and won’t leave you scrambling again).

Start by defining your needs

What do you actually want from your next bookkeeping provider? Bench offered basic cash-basis bookkeeping and tax prep, which served many small businesses in their initial phases, but its limitations left growing businesses needing more comprehensive support.

Now’s your chance to ask bigger questions that keep long-term stability in mind:

• Do you need accrual bookkeeping to account for revenue and expenses when they’re earned or incurred, helping you track obligations and income accurately, even if cash hasn’t yet changed hands?
• Do you need compliance basics, like tax filing and monthly reports?
• Do you want strategic insights to help manage cash flow, cut costs, or plan for growth?
• Do you need industry-specific expertise, like tracking project costs, managing inventory, or navigating state-specific tax rules?

Also read: How to choose a reliable bookkeeping service

Tailored options based on your business

Here’s a simple framework to help guide your decision:

• For small operations or solopreneurs:
  • Focus on compliance-oriented bookkeeping and basic tax filings. Look for a provider who’s trustworthy, efficient, and doesn’t take up much of your time.
• For growing small businesses:
  • Partner with a service that offers accrual-based accounting, tax planning, and insights into your finances. Seek providers who can also handle payroll, sales tax, and vendor payments to free up your time for growth-focused tasks.
• For high-growth or investor-backed companies:
  • Investors expect monthly accrual-basis financials, clear reporting, and systems prepared for audits or M&A. Choose a provider offering CFO-level guidance to help you manage against budgets or operating models.

Questions to ask before committing

• What’s their track record? Look for proven experience and glowing client reviews.
• Do they offer transparent pricing? Understand their fees upfront to avoid surprises later.
• How do they communicate? Ensure you’ll have access to timely, responsive support, whether through a dedicated contact or an on-demand system.
• Can they grow with you? Choose a partner whose services can scale alongside your business.

Also read: 8 questions to ask when choosing a reliable bookkeeping service

9. Does CoCountant offer support for Bench customers?

If you’re moving on from Bench, what you need now is a partner who understands the urgency and complexity of your situation. The transition doesn’t have to be overwhelming, and CoCountant is here to help make it seamless and stress-free.

Here’s how we can help:

• Free Bench migration:
  We’ll guide you in retrieving and importing your Bench data into a reliable bookkeeping system, ensuring no critical details are lost.
• Free 2024 catch-up bookkeeping:
  Left with incomplete books? We’ll bring them up to date quickly and accurately, so you’re ready for tax season and compliance deadlines.
• Year-end financials:
  Need statements for taxes? We’ll prepare your income statement, balance sheet, and supporting documents to help you file with confidence.
• Dedicated bookkeepers:
  You’ll work with a dedicated bookkeeper who understands your business and provides consistent, personalized support.
• Comprehensive financial management:
  Beyond the basics, we handle payroll, tax preparation, advanced reporting, and even CFO-level support—customized to your business’s needs
• Ongoing support:
  Our help doesn’t stop at fixing immediate issues. We’re here year-round to keep your books accurate, meet every deadline, and help your business thrive.

The bottom line

Bench’s sudden disruption has left business owners scrambling—dealing with incomplete records, looming deadlines, and shattered trust. While that is your present state, it doesn’t have to define your future.

That’s where CoCountant comes in as a reliable Bench alternative, with expert bookkeeping services at fixed monthly pricing, and a dedicated team that works like an extension of your business.

Let CoCountant help you get back on track. We’ll answer your questions, walk you through the next steps, and take over your bookkeeping so you can take over what you’re best at: running your small business.