On December 27, 2024, Bench Accounting, a popular bookkeeping platform, announced it was shutting down, leaving over 11,000 businesses scrambling to download essential financial reports as they learned the platform would not migrate their data to QuickBooks Online or any other service.
Fortunately, the company was acquired by Employer.com a few days later, however, this sudden closure highlights critical lessons for all business owners about the importance of maintaining control over financial data, choosing sustainable bookkeeping solutions, and preparing for unexpected disruptions.
If You Were a Bench.co Client, Take Immediate Action
If you were a Bench.co client, it’s crucial to act now to secure your financial records before access is lost entirely. Retrieve and securely store the following reports immediately:
- Balance Sheet (monthly): Provides a snapshot of your company’s financial position.
- Profit and Loss Statement (monthly): Details your revenue and expenses over time.
- Trial Balance (monthly): Offers a summary of all ledger accounts.
- General Ledger Detail (entire year): Tracks every financial transaction for the year.
- Accounts Receivable: Open invoices as of [current year].
- Accounts Payable: Unpaid bills as of [current year].
These reports are essential for tax filings, audits, financial planning, and maintaining a clear financial history. Once downloaded, save them to a secure location to ensure continued access.
Owning Your Financial Data Is Crucial
This highlights an important point for all business owners: it’s essential to keep ownership and control of your financial data. Relying solely on third-party platforms without having backups or accessible copies can put you at risk if something changes unexpectedly.
By maintaining your financial records in a format you can easily access and use, you’ll ensure you stay in control of your business’s past and future, no matter the circumstances.
Why You Need a Trusted Bookkeeper or Accounting Firm
This situation demonstrates the importance of working with an accounting team you know and trust. Here are just a few of the benefits of doing so:
1. The Power of Personal Relationships
While automation and technology play valuable roles in accounting, nothing replaces the insight and support of a dedicated bookkeeper or accountant who understands your business. Personal relationships with your accounting team help to meet your unique needs because you’re more than just a number in the system.
2. The Risks of Low-Cost Solutions
Low-cost services may seem appealing at first glance, but these pricing models can lead to sustainability issues. Bench.co’s recent situation highlights the pitfalls of relying on providers that prioritize the lowest cost possible over long-term service quality. A trusted bookkeeper or accounting firm can offer reliable support tailored to your business needs without compromising service.
3. Balancing Automation with Advisory Services
Automation is an incredible tool. In fact, we’re big fans of using technology to streamline processes where we can. However, financial management requires more than automation alone. Advisory services, personalized recommendations, and a hands-on approach are essential for making informed decisions and avoiding disruptions like the one Bench.co clients are experiencing right now.
Lessons for Every Business Owner
Whether or not you were affected by Bench.co’s shutdown, there are important takeaways:
- Regularly Back Up Your Financial Data: Download key financial reports monthly and store them securely.
- Evaluate Your Bookkeeping Solution: Ensure your provider offers both reliability and the ability to access your data when needed.
- Work with Trusted Professionals: A reputable accounting team can provide the stability and expertise your business needs to thrive.
Take Action to Protect Your Business
To avoid similar disruptions, take proactive steps today:
- Secure your financial data with regular backups.
- Reassess your bookkeeping provider to ensure long-term reliability.
- Schedule a consultation with a trusted bookkeeper or accounting firm to discuss your needs.
We’re here to help you navigate this change smoothly. Let’s work together to protect your business’s financial future. Contact us today to get started.
At Agile Planners, we provide strategic guidance and outsourced CFO services to companies of all sizes. We can help provide the strategy your organization needs for the growth you want. We understand that no two organizations are the same. And with our experience and financial knowledge, we can help develop the right strategic plan for your business to grow and reach its goals. Simply, we’ll be your trusted partner, so you can focus on running your organization. Contact us today to learn more about how we can help.
