(This article by Crystal Temple first appeared HERE)
The sudden closure of Bench Accounting has left many in the small business and bookkeeping worlds reeling. Bench, a Vancouver-based company founded in 2012, combined software automation with human bookkeepers to offer online bookkeeping services. With over $100 million in funding and 650 employees, Bench was a major player in the field, which makes its abrupt shutdown all the more shocking. It’s a bit like watching your favorite TV show get canceled mid-season with no warning—you’re left wondering what just happened and how to pick up the pieces.
This development highlights an important truth: even a model combining cutting-edge technology and live bookkeepers isn’t immune to failure. While technology and human expertise together can deliver incredible value, they still depend on the stability and sustainability of the business itself. A company’s success is about more than just the tools or the people—it’s about how everything works together, backed by a strong foundation and strategic planning. In other words, you can have the best ingredients, but if the oven’s broken, your cake is still going to collapse.
Bench’s story also underscores the importance of contingency planning. For small business owners who relied on Bench, the abrupt loss of access to financial records, ongoing bookkeeping tasks, and tax documentation is a stark reminder of the need to always have a backup plan. Whether it’s ensuring data portability or keeping chocolate handy for stress emergencies, proactive steps can mitigate the fallout from unforeseen disruptions.
Additionally, this situation reveals just how interconnected technology and human expertise have become in modern bookkeeping. Bench was neither purely software nor purely a traditional bookkeeping service—it straddled the line, providing a hybrid solution. But even hybrid models require robust operational strategies and financial health to sustain themselves. The collapse of such a prominent player begs the question: how can businesses protect themselves from similar risks? (Spoiler alert: it’s not by crossing your fingers and hoping for the best.)
So, what lessons can small businesses and bookkeepers take from this?
- Leverage Technology Wisely: Automation tools can save time and reduce errors by assisting with tasks like transaction categorization and reconciliations. But they’re most effective when paired with the strategic oversight of a skilled professional who can interpret and act on the data. For instance, while automation can flag potential discrepancies, a human bookkeeper is essential for investigating and resolving them accurately. Machines can spot a red flag, but they’re not great at explaining why it’s waving.
- Keep Your Data Accessible: Always maintain backups of your financial records independent of any third-party system. Whether it’s through cloud storage or external hard drives, having access to your data ensures continuity, even if your service provider disappears overnight. It’s not just about backups—it’s also about ensuring those backups are up-to-date and retrievable when needed. Trust me, future-you will be grateful when you’re not sifting through piles of receipts like an archaeologist.
- Understand Your Agreements: Before entrusting your financial processes to a provider, review their terms and conditions. Pay close attention to data ownership, retrieval options, and contingency plans for service interruptions. For example, some providers include clauses about how long you’ll have access to your data after a contract ends—this is a detail you don’t want to overlook. Skipping the fine print can feel like skipping leg day—you’ll regret it later.
- Regularly Reevaluate Your Tools: Your business isn’t static, and neither should your bookkeeping setup be. Periodically review whether your current tools and services still meet your needs. This proactive approach helps you adapt before challenges arise. For example, as businesses scale, they might need more advanced tools for multi-entity management or complex reporting. Think of it like upgrading from a tricycle to a ten-speed—what worked in the past might not cut it as you grow.
- Have a Continuity Plan: In addition to keeping data accessible, establish clear processes for addressing potential disruptions. This might include identifying internal team members who can take on temporary responsibilities or ensuring access to necessary tools and records to maintain operations without delay. Because the last thing you want in a crisis is a game of “Who’s Got the Password?”
The takeaway? Smart technology and human expertise aren’t an either/or proposition—they’re a partnership. But even the best partnerships require a solid plan and a stable environment to thrive. By using each to their strengths and ensuring a sustainable foundation, businesses can navigate both the routine and the unexpected with confidence. And let’s be honest: it’s nice to know there’s someone on your side who can handle the numbers and crack a good joke when you need it most.
Ultimately, the Bench closure is a wake-up call. Whether you’re a small business owner or a bookkeeper, it’s clear that resilience comes from preparation, adaptability, and a thoughtful mix of technology and human insight. Let’s take these lessons forward to build systems that are not only efficient but also tough enough to handle whatever chaos life throws our way. After all, if 2024 has taught us anything, it’s that even numbers need a survival kit and a sense of humor.
About Crystal Temple
Crystal has spent nearly two decades focused exclusively on accounting and bookkeeping for insurance brokers. She has founded multiple bookkeeping groups, one of which was acquired by a prominent AMS provider. Crystal has also served as a controller of an agency group that acquired over 50 agencies in a two-year timeframe. She is the co-founder of a startup called Ricono, building a platform to address some of the technology deficiencies brokers face when trying to measure and manage their financial operations.
Crystal has spent nearly two decades focused exclusively on accounting and bookkeeping for insurance brokers. She has founded multiple bookkeeping groups, one of which was acquired by a prominent AMS provider. Crystal has also served as a controller of an agency group that acquired over 50 agencies in a two-year timeframe.
She is the co-founder of a startup called Ricono, building a platform to address some of the technology deficiencies brokers face when trying to measure and manage their financial operations.
