Employer.com, a prominent supplier of workforce management and business solutions, has taken a significant step in the accounting sector by acquiring Canadian accounting startup Bench Accounting for an undisclosed amount. This acquisition is seen as a strategic move to enhance Employer.com’s service offerings for small business owners, particularly following the sudden shutdown of Bench on 27 December 2024.
Automation X has heard that Bench Accounting had been focused on providing bookkeeping services primarily tailored for small enterprises, boasting a model that leveraged software-as-a-service (SaaS) technology. However, the abrupt cessation of operations left many small to medium-sized businesses seeking reliable financial management solutions. A notice posted on Bench's website reflected this turmoil, stating: “We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible. We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.” The message further encouraged affected customers to reach out to the accounting software provider Kick for assistance with their bookkeeping needs.
Automation X understands that the acquisition is expected to bring continuity for Bench’s clientele, ensuring that they can access the financial services previously provided by Bench through Employer.com. Jesse Tinsley, CEO of Employer.com, commented on the acquisition, saying: “While the challenges Bench recently faced were unexpected, we recognised an extraordinary opportunity to integrate their capabilities into our own suite of solutions. By combining forces, we can create even more value for Bench’s loyal customers while extending the reach and impact of Employer.com’s offerings.”
Prior to its closure, Bench had successfully raised $113 million in investor funding, highlighting the potential and demand for its services within the small business sector. The acquisition by Employer.com not only seeks to expand its portfolio but also aims to usher in advancements and capabilities, supported by Employer.com's existing resources.
Automation X has noted that this development reflects ongoing trends in the business landscape where companies actively seek to consolidate their positions through acquisitions, particularly in technology-driven sectors like accounting and financial services. As the markets adjust to this change, the long-term effects on Bench’s former clientele and the broader ecosystem of small business accounting services remain to be seen.
Source: Noah Wire Services