When Accounting Platforms Fail: How to make sure your small business accounting is safe.

Could you imagine waking up one day to find that the accounting platform you’ve relied on for years is gone—taking your financial records with it?

For over 35,000 small business owners, this nightmare became a reality in late December 2024.

Bench Accounting, once a trusted name in bookkeeping services, shocked the small business world by announcing an abrupt shutdown.

Over 35,000 small businesses were left scrambling to access their financial data during one of the most critical fiscal periods of the year.

Despite securing over $100 million in venture capital funding and boasting a team of 600 employees, Bench’s hybrid model—combining human bookkeeping services with proprietary software—proved unsustainable at scale.

Adding to the turmoil, just days later, news broke of Bench’s acquisition by Employer.com, an HR technology firm based in California. While Bench assured customers that they would have access to their records until March 7, 2025, many business owners remain deeply concerned about the security and continuity of their financial operations.

This event underscores a harsh reality: businesses relying solely on third-party platforms for critical operations are vulnerable to sudden changes that can jeopardize their stability. It’s a stark reminder of the importance of choosing reliable, scalable, and growth-oriented accounting solutions.

Why the Bench Model Didn’t Work

Bench’s downfall highlights several critical flaws in their approach:

1. Proprietary Systems Over Established Tools: By relying on custom-built software, Bench created a dependency that left clients with limited flexibility. Businesses couldn’t integrate their financial data with other accounting systems, creating a bottleneck when the platform went offline.

2. Undervaluing Accounting Work: While automation is valuable, it’s not a substitute for skilled human expertise. Accounting isn’t just about data entry; it’s about strategic insight, compliance, and providing a clear financial roadmap.

3. Scaling Without Sustainability: Rapid growth without a foundation for long-term success and client service led to operational challenges that proved insurmountable.

Lessons for Small Business Owners

The Bench shutdown serves as a wake-up call for small business owners to reevaluate their reliance on platforms that prioritize growth over stability. As you consider your bookkeeping needs, ask yourself:

• Are my financial records secure and accessible?

• Do I have backup records?

• Does my accounting provider offer personalized support and strategic insights?

• Is my bookkeeping system designed to adapt and grow with my business?

At Freedom Sun, we’re committed to answering these questions with a resounding “Yes.” By combining reliable systems, expert guidance, and a focus on your growth, we ensure your financial management is a strength, not a vulnerability.

Finding a  Reliable Partner for Your Financial Success

At Freedom Sun, we understand the critical role bookkeeping and accounting play in your business’s growth. Unlike one-size-fits-all platforms, our approach is tailored to meet the unique needs of your business while prioritizing reliability and personal connection. Here’s how we’re different:

1. Integration with Existing Systems: We use established accounting tools that allow seamless integration and ensure your financial data is always accessible, even if you choose to switch providers in the future.

2. Valuing the Human Touch: Our team combines expert financial knowledge with a deep understanding of your business goals. We don’t just handle your books; we help you interpret your financial data to make informed decisions.

3. A Growth-Oriented Mindset: Bookkeeping isn’t just about compliance; it’s about setting the stage for growth. We view your financial management as a cornerstone of your business’s success.

4. Personalized Guidance: At Freedom Sun, we’re more than a service provider—we’re your partners in growth. Whether you need help navigating complex financial challenges or planning for the future, we’re here to guide you every step of the way.

Ready to Build a Stronger Financial Foundation?

If you're a current bench.io customer or are looking for a bookkeeping and accounting solution for your small business, then let's chat!

Freedom Sun can provide the dependable bookkeeping services your business deserves. Reach out today to explore how we can support your success and turn your financial management into a powerful growth tool.