The Bench Blunder: Lessons for Accounting Firms

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The abrupt shutdown of Bench and its subsequent acquisition sent shockwaves through the accounting world. Bench was the poster child of modern bookkeeping for combining AI accounting software with low-cost services to appeal to startups. But its near downfall raises some questions for us in the accounting space.

What can we learn from a firm that grew quickly yet couldn’t sustain itself? The story of Bench is more than just a headline—it’s a cautionary tale about pricing, client selection, and the real value we provide as accounting professionals. If you’ve ever wondered how to differentiate your firm, protect your margins, and deliver lasting value to clients, Bench’s near collapse is a lesson in what not to do.

📢Last call for the January How to Start Offering Advisory Cohort that starts next week. The next one will be sometime in May.

The Danger of Racing to the Bottom

We’ve discussed the importance of understanding your floor price and ideal client avatar. Bench’s pricing model highlights the danger of pricing too low. While $299 might sound accessible to a bootstrapped entrepreneur, it doesn’t leave room for profitability or the ability to truly support clients as their needs grow.

In my experience, charging less than $500 a month for bookkeeping is tough. It can be done especially by smaller accounting firms, but it is a volume game that can wear out staff. Clients that struggle to pay $500 a month can be demanding because they stretch every dollar they spend.

Why AI Won’t Fix This

The rise of AI tools in accounting has sparked excitement—and panic—in equal measure. But if Bench’s story tells us anything, AI will not replace us anytime soon.

AI might automate data entry, but it will not help clients understand their cash flow or make better decisions. It will certainly not guide them through the emotional rollercoaster of running a business.

That’s why we must stop selling our services and start selling the client experience. Clients don’t just need financial reports; they need a trusted partner to help them navigate the chaos. That’s where you come in.

What Sets You Apart

So, how are you different from Bench? Why should clients work with you instead of a service promising bookkeeping at rock-bottom prices?

Client Experience: Clients want to feel supported and understood. We understand their unique challenges and can explain the financial impact of different solutions. One way I improve the client experience is to hold recurring meetings.

Flexibility: Bench’s proprietary software was a double-edged sword. One accounting firm owner told me it took over 40 hours to extract data from the system and set up a business on QuickBooks. That’s a costly nightmare for entrepreneurs who need agility. Clients need solutions that grow with them, not systems that trap them. Furthermore, these clients are locked into annual contracts and cannot get refunds after the acquisition.

Strategic Insights: Bench was a bookkeeping service. However, clients need more than numbers; they need strategic advice to make smarter decisions. That’s where your role as a trusted advisor becomes invaluable.

Moving Forward

As accounting firms offering CAS, we can rise above the noise by focusing on what clients need: clarity, guidance, and a trusted partner.

The Bench story isn’t just a cautionary tale; it’s a chance for us to redefine excellent service. That starts with knowing our worth, targeting the right clients, and focusing on the human side of accounting.

Thanks for reading, Luke Templin!

P.S. There are three ways I can help you grow your CAS offerings when you are ready:

1. Join my How to Start Offering Advisory Services Cohort. The next one starts next week.

2. Cannot wait? Check out the pre-recorded version here.

3. Automated financial digests for your clients with FinDaily.io