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When Bench Accounting, once a leader in online bookkeeping, abruptly shut its doors on December 27, 2024, it sent shockwaves through the small business community. Thousands of businesses were left scrambling to find alternatives just weeks before tax season. The acquisition by
Employer.com was a last-minute lifeline, but the fallout raises important questions about what went wrong—and what it means for you as a small business owner.
As the CEO of Zapit Solutions, I’ve seen firsthand what happens when companies lose focus on relationships. I’m not here to sugarcoat this: Bench’s collapse is a cautionary tale for any business thinking about entrusting their finances to a bookkeeping provider that prioritizes rapid growth over client success. This isn’t just about Bench; it’s about an industry-wide issue with venture-backed companies that chase fast returns for investors while neglecting the very clients who fuel their growth.
Let’s dive into what happened and why it matters for your business.
Bench’s $60 Million Series C Funding: The Beginning of the End
In June 2021, Bench Accounting raised $60 million in a Series C funding round in June 2021, bringing its total funding to over $100 million (Source: BusinessWire). This substantial investment was supposed to catapult the company into its next phase of growth. Instead, it marked the beginning of its downfall.
After securing funding, Bench’s board of directors made a critical decision: they replaced their
co-founder and CEO, a leader who had built the company with a client-focused vision. In his place, they installed leadership intent on scaling rapidly to satisfy investor expectations. This shift in priorities—from serving clients to serving investors—set off a chain reaction that ultimately led to Bench’s closure. He believed this strategy would end the company, and he was right.
Over the next three years, Bench’s customer base shrank dramatically, from a peak of 35,000 clients to just 12,000 by the time of its acquisition by Employer.com (Source: TechCrunch).
This wasn’t just a stumble; it was a free fall. Former clients report feeling abandoned, with communication delays, declining service quality, and an impersonal approach that left them feeling like just another number.
Employer.com’s acquisition of Bench aimed to provide continuity for Bench customers, but rebuilding trust and relationships with disillusioned clients remains an uphill battle (Source:
TechCrunch). While the intentions may be good, the reality is that rebuilding trust and relationships with disillusioned clients is an uphill battle.
The Problem With Venture-Backed Growth
Bench’s story highlights a deeper issue: the challenges that come with venture capital funding. Former Bench clients reported feeling abandoned as the company's focus shifted from client success to rapid scaling and investor returns (Source:
Inc.). Companies backed by large investors are under immense pressure to deliver rapid returns. This often leads to:
- Aggressive Scaling: Instead of focusing on steady, sustainable growth, venture-backed companies aim to capture as much market share as possible, often at the expense of service quality.
- Toxic Cultures: Rapid scaling can create high-pressure environments where employees are overworked, undervalued, and unable to provide the level of service clients deserve.
- Neglect of Client Relationships: When the focus shifts to numbers and expansion, the personal touch that builds loyalty and trust disappears.
I know this firsthand because I spent seven years at a venture-backed company. I was employee number 26 when I joined, and over time, I watched as the company’s culture shifted. After receiving D-series funding, the focus became all about going public. We achieved that goal, but the cost was enormous. Just 1.5 years after going public, the company went out of business. The pressure to deliver fast returns created an unsustainable environment—for employees and clients alike. That experience shaped my belief that building strong relationships and sustainable growth should always come first.
Why Bookkeeping Is Personal, Not Transactional
At
Zapit Solutions, we view bookkeeping as more than just a service—it’s a partnership. Our goal is to help you build a strong financial foundation, whether you’re just starting out or managing a growing enterprise. Unlike large, venture-backed providers, we don’t aim to handle tens of thousands of clients. Why? Because the personal touch disappears when you’re spread too thin.
I am personally involved with every client, and that commitment trickles down to our entire team. We’re here to offer honest advice, even when it’s not what you want to hear, because that’s what a true partner does. We’re invested in your success, not just as a business but as people.
Here’s how we’re different:
1. Your Data Is Yours: We use QuickBooks Online primarily, which means your financial data is always portable and accessible. If you ever decide to switch providers, your data moves with you. There are no proprietary systems locking you in.
2. Automated for Efficiency: We automate as much of the process as possible to make reporting and management quicker and easier for everyone. Our tools are designed to streamline workflows so that accounting feels less like a chore and more like an integral part of your business success.
3. Real People, Real Support: When you work with us, you get personalized service from specialists who understand your business. No chatbots. No automated responses. Just real conversations with people who care.
4. Scalable, Sustainable Solutions: We leverage trusted, industry-standard tools like QuickBooks to keep costs low and quality high. This allows us to grow with you, offering solutions tailored to your unique needs.
The Risks of "Big Box" Bookkeeping
When you work with a massive bookkeeping provider, you risk becoming a number in their system. Large providers often:
- Cut corners to meet aggressive profit margins.
- Provide impersonal service that leaves you feeling unheard.
- Lock you into proprietary systems, making it difficult to switch providers.
Bench’s closure is a stark reminder of these risks. Thousands of businesses trusted them, only to be left stranded. Don’t let that happen to you.
Choosing the Right Bookkeeping Partner
Your bookkeeping provider should be more than just a service; they should be an extension of your team. At Zapit Solutions, we prioritize relationships, transparency, and your long-term success. We’re not here to chase investor returns or rapid growth. We’re here to help your business thrive.
If you’re ready to experience the difference that personalized, relationship-driven bookkeeping can make, I invite you to
schedule a free consultation with us. Let’s build the financial foundation your business deserves.
Ready to Simplify Your Bookkeeping?
Hi, I’m John, CEO of Zapit Solutions. Let us take care of your QuickBooks Online bookkeeping so you can focus on growing your business.
About Our CEO
John, CEO of Zapit Solutions, is a driven entrepreneur with a passion for empowering small business owners to succeed. Raised in a family with a proud military tradition—his grandfathers served in the Army and Air Force, one retiring as a Colonel, and his father served in the Army—John's upbringing instilled in him a strong work ethic, discipline, and a commitment to service. His own leadership journey began in high school JROTC, where he led his squadron to achieve Group status and graduated as a Cadet Lieutenant Colonel, followed by Air Force ROTC in college to become a pilot but those dreams were crushed as his eyes are not 20/20.
At 21, John started his first business while working as an accountant at one of California's largest dealerships, solidifying his love for numbers and financial clarity. By 25, he managed a $250 million big-box electronics store with 180 employees, consistently achieving top regional performance as the youngest Store Director at the company. Much later, he contributed to a venture-backed startup, where his accounting expertise helped transition the company from private funding to a public corporation.
Among his many ventures, John launched a Home Services company from his bedroom, scaling it to over $6 million in revenue and earning a spot on the Inc. 5000 list. Despite his achievements, John remains humble, confident, and deeply committed to his clients and community. Known for his genuine care, he’s the first to offer his last dollar or even the shirt off his back to someone in need.
With Zapit Solutions, John brings his entrepreneurial expertise and unwavering passion for helping small businesses thrive, delivering financial clarity and confidence to every client with the same dedication and care he brings to everything he does.
