The Sudden Shutdown of Bench Accounting: What It Tells Us About the Future of Accounting

Last weeks unexpected shutdown of Bench Accounting has sent ripples through the accounting industry, serving as a sobering reminder of the challenges and opportunities at the intersection of automation, technology, and the human touch in accounting.

Automation: We’re Not There Yet

While the promise of automation in accounting is compelling, the closure of Bench underscores a critical truth: we’re not yet at a point where automation alone can make low-cost bookkeeping viable, even for the simplest accounts. Despite the rapid advances in AI and tech-driven solutions, there is still something indispensable about having a human involved in accounting.

An analogy we often use is that your accountant is like Air Traffic Control. They may not touch every transaction, but they ensure everything gets where it needs to go—and that nothing crashes and burns. For startups and small businesses, even a simple yearly review or consultation with a human accountant can provide guidance that no tool or algorithm can replicate, at least not in the short term.

The Hidden Costs of Automation Gone Wrong

Bench didn’t have a stellar reputation for quality accounting, and it is possible that many startups and fledgling businesses now face significant challenges. They’ll likely need to make an investment to:

• Clean up their books. Automated systems can work well in ideal conditions, but when errors occur or rules aren’t set up correctly, the resulting mess requires expertise to untangle which could be costly.
• Migrate data. Moving to a mainstream General Ledger system like QuickBooks Online will demand time and effort, not to mention the cost of professional help to ensure accuracy.
• Close the year. With tax deadlines looming, these businesses will need to finalize their books quickly to meet filing requirements or file extensions while they recreate their books.

Unfortunately, the adage holds true: you pay for good accounting, either now or later. For many affected businesses, this upheaval couldn’t come at a worse time—scrambling to find a new accountant during the holidays is far from ideal.

A Blend of Automation and Human Oversight

The future of accounting is undoubtedly heading toward more automation. AI integrations with tools like QuickBooks and Harvest are already making routine processes more efficient. Bank rules, for instance, are a simple yet powerful form of automation that can save countless hours. But these tools still require human input to ensure proper setup and ongoing accuracy.

Even the best automation platforms rely on well-mapped processes. Without human oversight, errors in categorization or mapping can snowball into a costly disaster. That’s why accountants remain essential—not just to troubleshoot and refine these systems but also to provide the advisory expertise that comes only with experience.

The Case for Human-Led Advisory

While AI can categorize transactions and flag anomalies, it cannot yet replicate the nuance and judgment that come with years of hands-on experience. For startups and small businesses, this experience is invaluable, offering insights and advice tailored to their unique circumstances. Advisory work—strategic guidance that helps businesses grow and succeed—is something no software has yet been able to replicate.

What’s Next for Automation?

Looking ahead, the most promising advancements in automation likely lie in solutions that integrate with existing, market-tested General Ledger platforms, rather than full-stack systems like Bench. For simple, cash-basis accounting, automation works well. But for more nuanced needs, the human touch remains irreplaceable.

At Dark Horse CPAs, we are actively exploring how AI and automation can enhance our services. While we embrace the efficiencies these tools offer, we remain committed to providing the human-led oversight and advisory services our clients depend on.

If You’re Affected by Bench’s Shutdown

If you’ve found yourself scrambling to replace Bench, know that you’re not alone. Whether you need guidance on selecting your next accountant—even if it’s not us—or want to explore how we can help with your accounting, the sooner you take action, the better. Reach out, and we’ll help you navigate this transition.

The Bottom Line

The advancement of AI in accounting is remarkable, and the tools at our disposal are only getting better. But as Bench’s closure demonstrates, technology alone isn’t enough. Human expertise and oversight remain critical for ensuring accurate, effective, and strategic accounting. In the end, the most powerful tool in any accountant’s toolkit is experience—and that’s not something you can automate.

About Dark Horse CPAs

Dark Horse CPAs provides integrated tax, accounting, and CFO services to small businesses and individuals across the U.S. The firm was founded to save small businesses (and their owners) from subpar accounting and tax services and subpar client experiences. These small businesses are Dark Horses among their larger and more well-known competition. Being a Dark Horse CPA means advocating for small businesses by bringing them the tax strategies and accounting insights previously reserved for big business.