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Bench to be Acquired, After Abrupt Shut Down
In a surprising turn of events, it appears that accounting startup Bench will be acquired by Employer.com, just days after suddenly shutting down its operations. This move comes as a relief to the thousands of small business owners who found themselves locked out of their accounts, with no access to critical financial documents during peak tax season.
According to sources familiar with the matter, the acquisition is set to revive Bench’s platform, allowing customers to regain access to their accounts and continue working with the same expert bookkeepers they had previously. Employer.com, a human resources-focused company, will reportedly provide instructions for customers to log back in and obtain their data shortly.
It’s unclear at this time what implications the acquisition will have on Bench’s employee base, as over 600 people were employed by the startup prior to its shutdown. However, it seems that a “large number of employees” will be brought back on board to ensure continuity.
The move marks a significant shift for Employer.com, which is entirely self-funded and not backed by venture capital. According to reports, CEO Jesse Tinsley has been actively acquiring companies in the HR space since November, when he purchased the domain name for approximately $450,000.
In light of this development, Bench’s original recommendation that customers file for a six-month extension with the Internal Revenue Service (IRS) may no longer be necessary. This decision could prove a significant boon to affected small business owners, who were previously forced to navigate an uncertain financial landscape.
The acquisition is expected to bolster Employer.com’s offerings in payroll and onboarding, as well as accounting and tax services, effectively expanding its product portfolio. As TechCrunch reported earlier, Bench had been experiencing difficulties prior to its shutdown, leaving thousands of customers without access to crucial financial documents during a critical period.
It remains to be seen how this development will impact the startup’s future prospects, but for now, it appears that some level of continuity has been restored for affected small business owners.
Source: techcrunch.com
