Accounting Startup’s Sudden Shutdown Adds to Fintech Woes

Elizabeth MacBride, an author and the owner of a small publishing company, was celebrating a belated Christmas with her daughters on Friday morning when she glanced at her phone and saw an e-mail from her accounting firm, Bench. The Vancouver, British Columbia–based startup said it was shutting down services for customers, effective immediately. MacBride found she couldn’t access her company’s financial information, including loan statements and tax returns, through Bench’s website.

The news sent Bench’s 12,000 customers—mainly small businesses and startups in North America—scrambling over the weekend to find new providers to handle their accounting and tax needs. Other venture-backed accounting companies, such as Pilot and Kick, jumped to poach customers by offering discounts, according to the founders of both companies. Bench told staff it was insolvent.