2024 ended with a jarring surprise for many small business owners: the abrupt closure of Bench Accounting on December 20th. As one of the most recognized online bookkeeping services, Bench’s shutdown left countless customers scrambling to access their financial records—just days before the year-end tax season preparations. To add another twist, only ten days later, a private equity firm acquired Bench, signaling a potential new chapter but not erasing the chaos left behind.

This event serves as a wake-up call for entrepreneurs and business owners alike. Financial preparedness is not just a best practice—it’s essential for safeguarding your business against unexpected disruptions.

What Happened to Bench Accounting?

Bench’s sudden closure was announced internally on December 20, 2024, via email to employees and clients. For many, the timing couldn’t have been worse. Business owners were left without access to their financial data at a critical time—as they prepared for year-end reporting and tax filings.

The announcement sparked frustration and anxiety across the Bench user community. Here’s what some affected customers had to say:

• “We were just about to finish moving to QuickBooks and taking our bookkeeping in-house. I’m anxious now because I really want my data.”
• “I’ve been fighting for a year to get 2023 bookkeeping done. Worst experience I’ve ever had with customer service.”

Though Bench’s acquisition by a private equity firm hints at potential future stability, the immediate impact was clear: business owners who relied solely on Bench for financial recordkeeping were left vulnerable.

Lessons Learned: How to Protect Your Business Finances

Bench’s collapse is a cautionary tale for all entrepreneurs. Here are five critical steps to ensure your business finances remain secure:

1. Be the Primary Admin of Your Financial Accounts

If you use software like QuickBooks Online, always ensure that you are the primary admin. This guarantees uninterrupted access to your financial records, regardless of your accounting provider’s status.

2. Keep Regular Backups of Financial Data

For platforms like QuickBooks Desktop, request regular backups of your files. For cloud-based systems, download monthly financial reports and statements.

3. Organize and Retain Critical Documents

• Tax Returns: Always keep copies of your tax returns. The IRS holds taxpayers—not accountants—responsible for maintaining these records.
• Monthly Statements: Save monthly profit and loss statements, balance sheets, and general ledgers in both PDF and Excel formats.

4. Build Relationships with Trusted Professionals

While software and automation are valuable, there’s no substitute for a trusted accountant or bookkeeper. Work with someone who understands your business and communicates openly about your financial health.

5. Don’t Rely Solely on One Service

Diversify your financial tools and systems. Whether it’s bookkeeping, tax preparation, or payroll, having multiple safeguards in place reduces the risk of disruptions.

What You Can Do Today

Start the year with a financial health check-up:

• Ensure you have access to all critical accounts and data.
• Organize your receipts, invoices, and bank statements.
• Schedule time to meet with your accountant or bookkeeper to discuss any gaps or vulnerabilities in your financial systems.

Taking these proactive steps will ensure you’re better prepared for 2025 and beyond. If you’re unsure where to start, reach out to a trusted financial professional who can guide you.

The Bench Accounting story underscores the importance of staying vigilant and proactive with your business finances. While it’s impossible to predict every challenge, being prepared ensures you can weather unexpected disruptions.

Let’s make 2025 a year of financial strength and resilience for your business. Take control today—your future self will thank you!

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