Vancouver-based bookkeeping service Bench Accounting has announced its sudden closure, potentially putting hundreds of staff out of work and forcing clients to seek alternatives just days from the end of the year.

The company that has described itself as North America鈥檚 largest bookkeeping service for small businesses posted a 鈥渘otice of closure鈥� on its website.

It said that as of Friday the platform was 鈥渘o longer accessible.鈥�

鈥淲e know this news is abrupt and may cause disruption, so we鈥檙e committed to helping Bench customers navigate through the transition,鈥� it said.

Bench has previously said it had more than 600 employees and had received investor funding of US$113 million.

It said it moved to Vancouver and changed its name to Bench in 2013, having started out in 2012 as 10sheet Inc in the U.S.

Calls to Bench鈥檚 Vancouver office went to voice mail and did not immediately receive a response.

The website said customers would be told how to access their data by Dec. 30, and that the material would be available for download until March 7.

鈥�(You鈥檒l) be able to enter your Bench login credentials to download your current and prior year-end financials, as well as any documents you鈥檝e uploaded such as receipts and bank statements,鈥� it said.

It said customers should file for a tax extension to get extra time to find a new bookkeeper to file their taxes.

The company鈥檚 former CEO and co-founder Ian Crosby released a statement on social media on Friday, saying he was 鈥渧ery sad鈥� about the closure.

But Crosby, who said he was ousted by the company鈥檚 board about three years ago, said there was a lesson in the fate of the company.

鈥淚 hope the story of Bench goes on to become a warning for VCs (venture capitalists) that think they can 鈥榰pgrade鈥� a company by replacing the founder. It never works,鈥� he said.

The University of British Columbia Sauder Business School alumnus said he had been avoiding speaking publicly about Bench since his exit, but wanted to make a statement in light of the company鈥檚 demise.

He said that in 2021 he had been battling with some board members over their strategy for a 鈥渘ew direction鈥� that he thought was a 鈥渧ery bad idea.鈥�

鈥�Rather than continuing to fight with me, they opted to just replace me, thinking that they could run the company better themselves,鈥� he said.

鈥淚 was totally convinced that their approach would destroy the company. I opted to resign rather than fight.鈥�

Kaz Nejatian, COO of Bench investor Shopify, agreed with Crosby.

鈥淏ad investors destroyed a great Canadian company by replacing the founder with so-called professionals,鈥� Nejatian said on social media platform X.

Other bookkeeping companies were quick to reach out to Bench鈥檚 former clients, with rivals such as Acuity and Better Bookkeeping making reference to Bench鈥檚 closure in social media pitches.

Rival companies also commented on complaints by Bench clients, offering their services.

A spokeswoman for B.C.鈥檚 jobs ministry said they were looking into a request for comment.

The Canadian Press