Bench's Bankruptcy: A Wake-up Call to own your Numbers
The recent bankruptcy of Bench, a prominent bookkeeping provider, sends a clear message: outsourcing your entire accounting function to a single vendor creates dangerous dependencies. This isn’t just about Bench - it’s about the fundamental way companies should think about their financial operations.
The Core Problem
Bench’s model was seductive: they promised to handle all your bookkeeping needs with a hybrid of human bookkeepers and software. But this “black box” approach left many companies in a precarious position. When Bench stumbled, their clients were left scrambling to piece together their financial histories and establish new accounting processes.
The Better Way Forward
Instead of fully outsourcing your accounting, companies should build their financial stack on three key principles:
Own Your Data
- Use software that gives you direct access to your financial data
- Maintain your own system of record
- Keep control of your chart of accounts
Prioritize Integration
- Choose tools that work well with others
- Build a stack that can survive any single vendor’s failure
- Focus on automation over outsourcing
Stay Close to Your Numbers
- Keep core financial knowledge in-house
- Use vendors to augment, not replace, your financial operations
- Maintain visibility into your accounting processes
The Role of Modern Tools
This doesn’t mean doing everything yourself. Modern accounting tools like Subledger offer a better approach - they empower your team while maintaining your autonomy. Look for software that:
- Provides direct data access
- Offers robust APIs and integrations
- Supports your existing workflows
- Keeps you in control
The Bottom Line
Bench’s bankruptcy isn’t just a cautionary tale - it’s an opportunity to rethink how we approach business accounting. The future isn’t about outsourcing everything to a single provider; it’s about building resilient, integrated systems that give you both efficiency and control.
The companies that succeed will be those that take ownership of their financial operations while leveraging modern tools to automate and streamline their processes. Don’t wait for your own Bench moment - start building a more resilient accounting stack today.