Bench Accounting Shutdown Announcement: Key Takeaways for Shopify and eCommerce Brands
Bench Accounting's shocking closure announcement left countless Shopify and DTC brands searching for alternatives just days before year-end. Here's what eCommerce businesses need to know

Key Takeaways for Ecommerce Brands:
- Bench Accounting announced it ceased operations on December 27th, 2024, with customers having until March 7th, 2025 (5:00 PM ET) to download their financial data and documents - causing serious drama and anxiety to their +11K clients.
- The announcement's timing—just before year-end—created urgent challenges for eCommerce businesses needing to close their 2024 books and prepare for tax season.
- On December 30th, Bench announced it is being acquired by employer.com - and then removed it from their site, then put it back on. (until further notice?)
What does it all mean for their ecommerce clients?
(this article was written and updated between December 29th and December 30th)
Here's what you need to know about the ongoing accounting drama, and going forward as an ecommerce business looking for safe alternatives to bench among its many competitors.
And so, the story goes...
The unlucky Friday of December 2024 wasn't the 13th. It was actually the 27th when Bench Accounting, a major player in the world of bookkeeping and accounting, suddenly announced its shutdown. This Bench Accounting shutdown for eCommerce and other businesses came as a shock, with Bench publishing a notice of Service Closure on their website (before announcing its pending-acquisition by emploiyer.com on December 30th, 2024).
This announcement caused turmoil in the usually staid world of bookkeeping, severely affecting Shopify accounting after Bench's sudden closure announcement. The news has created a whirlwind, especially among eCommerce brands scrambling to find bench alternatives quickly, as year-end is right here.
Who is Bench?
Bench was founded in 2012 (accepted into Techstars NYC accelerator as 10Sheet Inc) and changed its name to Bench in 2013. The company raised venture capital of over $100M, with their last round being a $60M Series C in 2021, led by Contour Venture Partners and including strategic investors such as Sage and Shopify.

Based in Vancouver, Canada, and employing over 600 people, Bench positioned itself as North America's "largest bookkeeping service for small businesses" as of September 2024.
Bench's main product was online bookkeeping supported by in-house bookkeepers, offering comprehensive services including historical and monthly bookkeeping, cash flow management, expense tracking, and financial reporting.
Of particular importance to Shopify and other ecommerce sellers, Bench had integrations with Stripe, Square, and PayPal, making it a popular choice for eCommerce accounting. The company outsourced tax services to Taxfyle.
Why Did Bench Close?
While we don't have inside information about the Bench shutdown, making this analysis speculative, several factors likely contributed to the Bench.co shutdown announcement:
- Financial Challenges:
- It's likely that a secured debt was called due to a broken debt covenant.
- When a company with a debt covenant doesn't meet its obligations (such as DSCR/gross margin/EBITDA margin requirements), lenders can call the loan.
- While this is an extreme scenario, lenders typically show flexibility if a company is profitable or has a compelling growth story.
- Without a good explanation or profitability, a loan call could lead to instant insolvency and operational closure if cash reserves were insufficient.
- Timing Considerations:
- The closure right before year-end may be strategic.
- This timing suggests they wanted to avoid year-end accounting obligations.
- The decision appears calculated to provide customers sufficient time before tax reporting deadlines.
Watch my analysis here for some more in-depth breakdown of the developing story:
In Case You Missed It
Here's a quick summary of what happened so far:
- December 27 - the announcement of the Bench shutdown is going live, sending shockwaves throughout the industry
- With the announcement, they also refer their "ex" customers to Kick, a relatively unknown provider
- Still on the same day, Bench's founder and former CEO, Ian Crosby, shares his take on the matter on Twitter
- December 29 - reports of a potential buyer hit the web
- Digging around Bench's website revealed this buyer is probably a new company called employer.com
(nice domain)

- December 30 - Bench takes down their referral to Kick
- Then, they post the acquisition announcement, presenting themselves as an "employer.com company."
- In a yet another unexpected turn of events, less than 2 hours later - the acquisition announcement was removed!
- An hour passes - and the referral to Kick is back on.
- Thirty minutes on, and what some were hearing is that the acquisition process was actually happening, but then collapsed for reasons we could not verify.
- And, about an hour later - according to bench.co, the acquisition is on again!
Not a normal day in the life of the bench.co domain.
Is it a day you are willing to accept from the company responsible for your financials?
We guess you've already started looking into Bench accounting competitors.
What's Next for eCommerce Brands Post-Bench
First thing, we do highly recommend you do whatever you can to salvage your data from bench. At this rate, it's hard to know what will happen with the company or their data. Keep close tabs on any update related to their ongoings, ping them on social, email, wherever you can. Your books are your highest priority here.
Then...
When evaluating Bench alternatives for DTC brands, consider solutions that offer:
- Seamless data migration capabilities.
- Strong eCommerce platform integrations.
- Real-time financial reporting.
- Comprehensive bookkeeping services.
- Tax preparation support.
The sudden closure announcement of Bench Accounting represents a significant disruption for eCommerce businesses, but with proper planning and quick action, companies can successfully transition to new solutions that better serve their needs. The key is acting swiftly to secure your data and ensure continuity of your financial operations.
Finaloop is here to help clients affected by the Bench.co closure and ensuing fiasco:
- Building (as you're read this) a dedicated Bench-to-Finaloop migration tool
- Offering you 2024 catch-up services FOR FREE
- Guaranteeing 1.5-week delivery time for full-year financials (cash/accrual accounting) with a money-back guarantee
Talk to one of our ecommerce finance experts to get all the support you need - with our dedicated onboarding experience to ex-Bench clients.
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Checklist: Questions to Ask Before Choosing Your Next Bookkeeping/Accounting Service as an eCommerce Bench Client
- How well does this service integrate with my sales channels?
- Does it support platforms like Shopify, Amazon, Etsy, and eBay?
- Can it handle multichannel sales (including wholesale and omnichannel) and consolidate data across all platforms? Is there seamless integration for payment gateways, ensuring fees and payouts are properly accounted for?
- Can it break down gross sales into net sales, accounting for returns, refunds, discounts, and promotions?
- Can the service handle inventory and COGS accounting properly?
- Does it provide accrual-based accounting tailored for eCommerce businesses, ensuring accurate profit and loss reports?
- How does the landed cost per SKU be calculated? Does it account for all costs like shipping, tariffs, and assembly?
- Can it manage complex inventory recipes and handle multi-step manufacturing or procurement processes?
- Does the service offer real-time financial reporting?
- Will you have access to real-time data on sales, expenses, cash flow, and inventory?
- Can it generate customizable reports to analyze KPIs like profit margins, inventory turnover, and seasonal trends?
- What support does it provide for managing fluctuating cash flow?
- Can the service help you track cash flow in real-time to address liquidity issues?
- Does it understand eCommerce seasonality and provide insights into peak periods like BFCM?
- Does the service reduce manual work and streamline processes?
- Does it automate key tasks like transaction categorization, reconciliation, and tax preparation?
- Can it sync data automatically, reducing errors and saving time?
- What’s the onboarding and data migration process like?
- Can they assist with migrating data from Bench, including reconciling historical data and preparing for year-end?
- How quickly can they set up your accounts and ensure everything is accurate?
- Is the interface user-friendly?
- Does it provide intuitive dashboards and real-time updates?
- Can you access reports and insights easily, even without an accounting background?
- Is the service scalable as my business grows?
- Can it support higher sales volume, additional sales channels, and international expansion?
- Does it adapt to new challenges and complexities as your business evolves?

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