Employer.com has acquired Bench Accounting, providing a much needed lifeline to Bench customers after the accounting startup shut down on December 27, 2024.

As reported by TechCrunch, Bench posted a notice on its website last week saying that it was shutting down.

“We regret to inform you that as of December 27, 2024, the Bench platform will no longer be accessible,” the notice reads. “We know this news is abrupt and may cause disruption, so we’re committed to helping Bench customers navigate through the transition.”

With a self-proclaimed 35,000 US customers alone, the sudden shutdown left countless users in a lurch, with their preferred software-as-a-service (SaaS) accounting package no longer available.

Fortunately, Employer.com has worked out a deal to acquire Bench, giving users an option moving forward.

This acquisition reflects Employer.com’s commitment to expanding its portfolio of services and enhancing the value delivered to small business owners. Despite recent headlines concerning Bench’s decision to suspend operations on December 28, we are pleased to reassure Bench customers that Employer.com has been working diligently behind the scenes to ensure a seamless transition.

This acquisition ensures that Bench customers can continue relying on the same high-quality service they’ve always received, while also opening the door to future enhancements and capabilities powered by Employer.com’s extensive resources. Employer.com is committed to empowering small businesses with the tools and support they need to thrive, and Bench’s expertise in financial management aligns perfectly with that mission.

Employer.com and Bench executives touted the deal as the best possible outcome.

“Bench has always been a trusted partner to small businesses, and we are excited to build on that legacy,” said Jesse Tinsley, CEO of Employer.com. “While the challenges Bench recently faced were unexpected, we recognized 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.”

“At Bench, our customers and team have always been at the heart of everything we do. We’re so pleased to have found a great home for many of them with Employer.com—a partner we trust to deliver the care and continuity our customers deserve,” said Jennifer Bouyoukos, Chief People Officer at Bench Accounting. “This transition reflects our unwavering focus on creating the best possible outcomes for everyone involved.”

Employer.com Makes the Case for Its Trustworthiness

Needless to say, the acquisition is a risky one for Employer.com, as the company immediately has to overcome any and all ill will Bench users feel about the sudden shutdown and convince them not to abandon the platform for competing options.

Based on the company’s statements, Employer.com is wasting no time trying to reassure users.

Employer.com has a proven track record of delivering scalable, reliable, and innovative solutions. With Bench’s technology and expertise now part of its platform, Employer.com offers an unparalleled combination of services tailored to the needs of growing businesses. Customers can trust Employer.com not only to maintain continuity but also to elevate their operational capabilities, enabling them to focus on their core business goals.

“This acquisition is more than a transaction; it’s a partnership with the Bench community and a promise to our customers,” added Tinsley. “We’re excited to bring together the best of both worlds to create a powerful, integrated solution that redefines how businesses manage their workforce and finances.”

“Employer.com’s strategic acquisition underscores its confidence in the future of Bench, its team, and its customers. Together, we look forward to delivering even greater value, innovation, and support to small businesses in North America and beyond,” added Tinsley.

The Bigger Issue With SaaS

There has been a growing backlash against SaaS in recent years, as companies and organizations tire of paying high monthly fees to access critical software. In fact, Basecamp maker 37signals—one of the companies that popularized SaaS—is now focusing on ushering in the “post-SaaS era.”

The company explained its reasons when it launched its new Once.com:

Today, most software is a service. Not owned, but rented. Buying it enters you into a perpetual landlord–tenant agreement. Every month you pay for essentially the same thing you had last month. And if you stop paying, the software stops working. Boom, you’re evicted.

For nearly two decades, the SaaS model benefitted landlords handsomely. With routine prayers — and payers — to the Church of Recurring Revenue, valuations shot to the moon on the backs of businesses subscribed at luxury prices for commodity services they had little control over.

Add up your SaaS subscriptions last year. You should own that shit by now.

The company has since went on to say that it is now saving $10 million over the next five years as a result of its decision to migrate away from the cloud and SaaS.

While cost is certainly a major disadvantage of SaaS, the Bench ordeal illustrates and even bigger issue: An organization’s software and data can disappear overnight if the company providing the software shuts down.

In contrast, using a locally-installed application offers a measure of security. Even if the company that makes it goes under or shuts down, that doesn’t mean the application itself stops working. In fact, the software world is full of examples of discontinued software being used for years after it was discontinued. In addition, more often than not, another application will often appear that provides a way to import data from the discontinued app.

Conclusion

Ultimately, cases like Bench Accounting provide some of the biggest arguments for locally-installed software over SaaS. Companies and organizations that rely on mission-critical applications would do well to use locally-installed options, to ensure the maximum level of continuity.

If a company needs or insists on using SaaS options, it should use products and platforms from well-established companies, rather than relying on a startup with an unproven track record.