This article reports on the story of Bench, a company that provides accounting and bookkeeping services to small businesses. Here’s a summary:
The Story of Bench
- Bench was a popular platform for small businesses to manage their finances, with over 100,000 customers.
- In December 2022, the company suddenly shut down its operations and laid off all employees without warning.
- The shutdown notice recommended that clients file for a six-month extension with the IRS to find a new bookkeeper.
The Acquisition by Employer.com
- Days later, Employer.com, a company that specializes in payroll, recruiting, and other HR-related fields, acquired Bench’s assets and customer contracts.
- Employer.com promised to revive Bench’s operations and honor its customer contracts.
Uncertainties Remain
- The acquisition was completed quickly over a holiday weekend, which raises concerns about the thoroughness of the due diligence process.
- Employer.com lacks experience in accounting, which may impact the quality of service provided by Bench.
- Some former Bench employees are being offered only 30-day contracts, which has raised questions about the long-term viability of the company.
Reactions from Key Players
- Employer.com’s chief marketing officer, Matt Charney, expressed confidence in the acquisition and the company’s ability to integrate Bench’s customers and expertise.
- Bench Chief People Officer Jennifer Bouyoukos confirmed that the 30-day contracts are a temporary measure to ensure continuity while necessary infrastructure is set up.
Overall, the story of Bench highlights the challenges faced by startups and companies in the accounting industry. The acquisition by Employer.com has raised questions about the long-term viability of the company and the impact on its customers.