If you were relying on Bench Accounting to handle your small business finances, the recent news of their sudden closure likely hit hard.
With tax season around the corner, being left without access to your financial data is nothing short of a nightmare.
Even though Employer.com acquired Bench shortly after their closure, the uncertainty surrounding the platform has many small businesses wondering:
What now?
The acquisition is likely a band-aid solution to a much bigger issue, and it’s likely time to evaluate other options to make sure your finances are in safe hands.
Let’s talk about some solid alternatives to Bench Accounting that can help you protect your business going forward.
What Happened with Bench Accounting?
First, let’s go over what happened with Bench Accounting so we can avoid the same thing happening again.
Bench Accounting started out as a service promising to simplify bookkeeping for small businesses. They were a newer company that offered a combination of bookkeeping software and a team of bookkeepers to handle your financial tasks. It seemed like a great, modern option for business owners who wanted something easy and efficient.
But then, just a couple of days after Christmas, they shut down without warning, leaving over 12,000 businesses in the lurch. Their advice to customers?
“File for an IRS extension.”
That’s not exactly the kind of help you’d hope for in a crisis.
The shutdown happened fast, and it’s clear their business model wasn’t built to last.
Managing finances takes expertise and consistency—things that technology alone can’t replace. Unfortunately, it’s the small business owners who trusted them who are left to pick up the pieces.
So, What Are Your Alternatives?
Whether you’re replacing Bench or just want to make sure your financial operations are secure, here are a few reliable options:
Bench Alternative #1: DIY-It With Reliable Accounting Software
If you’re comfortable managing your own bookkeeping, QuickBooks and Xero are excellent choices. These platforms are trusted by millions of small business owners worldwide for good reason. Here’s why they’re worth considering:
- QuickBooks: QuickBooks has been a leader in the accounting software space for decades. It offers:
- Ease of Use: While the design isn’t perfect, it’s generally straightforward. If you hit a snag, there are tutorials to help you figure things out.
- Comprehensive Features: From invoicing and expense tracking to payroll and tax preparation, QuickBooks covers all the bases.
- Scalability: Whether you’re running a one-person operation or a growing business, QuickBooks has versions that can adapt to your needs.
- Widespread Support: Since it’s so popular, finding QuickBooks experts or support resources is easy if you ever need help.
- Xero: Xero is another top choice for small businesses. It’s particularly well-loved for its modern, user-friendly approach. Key features include:
- Cloud-Based Convenience: Xero is 100% cloud-based, so you can access your finances from anywhere.
- Integration-Friendly: It works seamlessly with hundreds of other business tools, like payment processors and inventory systems.
- Affordable Pricing: Xero offers flexible plans that cater to businesses of all sizes, and you only pay for what you need.
- Streamlined Collaboration: If you work with an accountant or bookkeeper, Xero makes it easy for them to access and manage your financial data.
Both QuickBooks and Xero are reliable, stable, and have long-standing reputations for serving small businesses. They’re backed by large, established companies with the resources to provide continuous updates and improvements—unlike niche solutions that might disappear overnight.
Bench Alternative #2: Hire a Reputable Bookkeeper or Accountant
Managing your own bookkeeping might seem like a good idea at first, but it can quickly become overwhelming. The time spent juggling spreadsheets, reconciling accounts, and keeping up with invoices could be better spent growing your business. That’s why, for many business owners, hiring a professional can be a game-changer.
You have a couple of options here. You could hire a local bookkeeper or accountant who knows your area and can provide in-person support. This is a great choice if you prefer face-to-face interactions and someone who’s familiar with your local business environment.
Or, if you’re open to working virtually, there are plenty of remote accountants and bookkeepers who can help, including us at Mahoney CPA. We work with small businesses across the country, offering personalized support that fits your needs. And if you happen to be in the Denver area, we’re local to you, too!
A skilled bookkeeper or accountant doesn’t just crunch numbers—they offer advice, answer questions, and make sure your business stays on track.
Whether you go local or virtual, having a professional on your side makes a world of difference.
Bench Alternative #3: A Little Bit Of Both
Alternatively, why not do both? The best option for many small businesses is a mix of both—using software to handle the day-to-day tasks and an accountant to make sure everything is accurate and compliant.
This approach gives you the convenience of technology with the peace of mind that comes from professional direction & oversight.
Some companies (like ours!) offer a supporting role to DIY bookkeeping, meaning for just $150 / month, we’ll look over your bookkeeping, reporting, and business financials to ensure that everything is up-to-date.
This cost effective solution is a great way to get the best of both worlds: control over your bookkeeping and a professional’s guidance.
Lessons Learned from Bench Accounting’s Closure
No matter what you decide to do next, there are a few lessons we can all learn from Bench’s sudden closure.
- Back Up Your Financial Data: Always keep multiple backups of your financial records. Use a secure cloud platform and keep a physical backup on an encrypted external drive.
- Be Cautious with Niche Solutions: Smaller providers can be risky. Look for platforms or services, like QuickBooks Online or Xero, with a proven track record of reliability.
- Separate Tools from Expertise: Software is just a tool. It’s not a substitute for the knowledge and judgment of an experienced professional.
- Have a Contingency Plan: Before committing to any financial service, ask how easy it would be to switch providers if needed. Make sure your data is secure and easily transferable.
Our Recommendation: Choose Human-First Accounting
Finally, Bench’s closure is a reminder that tech-driven services have limits. In the world of AI, it’s important to remember that while technology can make processes easier, it can’t replace the personalized support and expertise that a real person provides.
At Mahoney CPA, we believe in a human-first approach to accounting. We’re here to make sure your finances are not only accurate but also aligned with your goals. We use the latest tools to make things efficient, but at the end of the day, you’re working with real people who care about your success.
If you’re in the market for a new accounting & bookkeeping team and ready to move on from Bench, reach out to us.
Whether you’re looking for full-service accounting or just some advice on the right tools, we’re here to help.
Simply head over to our Getting Started page to book your first introductory call.
Until next time!
