This article from TechCrunch reports on the story of Bench, a Canadian accounting firm that was acquired by Employer.com after its sudden shutdown. Here’s a summary:
Background: Bench was a popular accounting firm for small businesses and freelancers, offering bookkeeping services through an AI-powered platform.
Shutdown: On December 27, Bench sent out a notice to its clients informing them of the company’s shutdown due to "unforeseen circumstances." The notice recommended that customers file for a six-month extension with the IRS to find a new bookkeeper.
Acquisition by Employer.com: Just hours after the shutdown, Employer.com announced that it had acquired Benchmark, saving hundreds of jobs and thousands of customer accounts from being left in limbo. Employer.com is a human resources company that specializes in payroll, recruiting, and other HR-related services.
Uncertainties: There are several concerns surrounding the acquisition, including:
- The sudden firing of all Bench staff on December 27, which raises questions about whether customers will have access to the same quality of service.
- Employer.com’s lack of direct experience in accounting, despite its claims that it can "acquire that expertise very quickly."
- The company’s decision to offer some former Bench employees only 30-day contracts, sparking concerns about continuity and stability.
Response from Employer.com: In response to these concerns, Employer.com’s chief marketing officer, Matt Charney, stated that the company feels "very very comfortable" with Benchmark’s reputation and track record. He also emphasized that the acquisition was made possible by multiple legal firms working together over a holiday weekend.
