Employer.com Acquires Bench After Abrupt Shutdown

Thousands of customers grappling with the fallout of Bench's sudden closing learned Monday that Employer.com has acquired it. 

The San Francisco tech company that focuses on human resources will restore Bench’s accounting platform and provide instructions for customers to login and obtain their data. These simple tasks were impossible late last week when Bench abruptly shut down, creating chaos among customers preparing for the looming tax season.

They now will have the choice to either port their data or keep their service under new ownership.

Employer.com plans to combine its current tools with Bench’s features, which include:

• Creating groups of available workers for specific projects.
• Helping businesses quickly find workers for short-term or flexible jobs.
• Keeping track of workers and their assignments in real-time.

The financial terms of the deal remained undisclosed at The Woodard Report's time of publication.

Recommendations for affected clients

For businesses and individuals who relied on Bench’s services and are concerned about the impact of the acquisition, particularly with tax season approaching, here are some steps to prepare:

Review past records

Ensure that all staffing and payroll records from Bench’s platform are downloaded and securely stored. These documents will be critical for tax filings and audits.

Transition to new tools

Familiarize yourself with Employer.com’s services and seek support for any data migration.

Consult financial advisors

Changes in staffing systems may affect financial reporting. Consult with a tax professional to ensure compliance and accuracy in reporting.

Communicate with teams

If you manage a business, inform your HR and accounting teams about the changes and ensure they understand how to handle the transition.

Sudden shutdown

Bench, a Canadian firm known for its software-as-a-service (SaaS) platform tailored for small and medium-sized businesses (SMBs), initially left everyone with a nebulous note: 

“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible. We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.”

Early Monday, the Bench website featured only a cover landing page that told customers more information would be available by 9:30 am EST. That deadline came and went with no news, and the site was updated to say: "More information on how to continue your services will be available soon."

Then, at noon, the site confirmed that Employer.com has acquired Bench. 

Founded in 2012, Bench had gained a reputation for simplifying accounting tasks for SMBs by pairing intuitive software with real-life bookkeepers. Over the years, it garnered significant investor interest, raising tens of millions in funding and boasting a client base across North America.

Richie McIlroy, founder of Cap, a British video messaging company, took notice, even more so when the shutdown occurred.

"We have very recently paid Bench Accounting over $2000 to complete our yearly tax filings. They very happily took our money," he wrote on his LinkedIn account. "Over $100m in VC funding. Absolutely insane." 

While no official reason was provided for the shutdown, industry insiders speculate that financial difficulties may have played a role.

The SaaS industry has faced headwinds in recent years, with rising operational costs and increasing competition squeezing margins. Bench’s sudden closure may also reflect challenges specific to its business model, which relied heavily on human labor paired with technology—a costly combination in the face of economic uncertainty.

Industry reaction

Bench’s closure sent ripples through the fintech and SaaS sectors, serving as a cautionary tale for startups in the accounting space. The company was seen as a pioneer in the industry, blending software innovation with human expertise to tackle the often-complex needs of small business owners.

Competitors in the space, such as QuickBooks and Xero, are already positioning themselves to capture Bench’s displaced customer base. Both companies have rolled out special offers and migration tools aimed at easing the transition for former Bench users.

Lessons for customers and startups

The sudden shutdown serves as a stark reminder of the risks associated with relying on third-party platforms for critical business functions. Experts recommend that businesses take proactive steps to mitigate such risks, including:

Regular data backups

Ensure financial data is regularly downloaded and backed up locally to prevent loss in case of service disruptions.

Diversifying tools

Avoid over-reliance on a single platform by using multiple tools for different accounting and financial tasks.

Vendor due diligence

Evaluating the financial stability and longevity of service providers before committing to long-term relationships.

For startups, Bench’s story highlights the importance of adaptability and robust financial planning. In an era where economic and technological landscapes are rapidly evolving, businesses must be prepared to pivot and adjust strategies to remain competitive.

Let us know your thoughts on the abrupt closure and pending acquisition in the comments below!