Bench Shut Down: Best Alternatives for Small Business Bookkeeping in 2026
Bench.co closing caught a lot of small business owners off guard. If you relied on Bench for monthly bookkeeping, here’s what your options actually look like now – and why some of them are better than what Bench offered.
If you’re here because you lost your bookkeeper
You’re not alone. Bench had roughly 35,000 customers when it shut down in late 2024. Some accounts got picked up by competing services. A lot didn’t. And even if yours did, you might not love where you landed.
The good news: the bookkeeping market has changed since Bench first launched in 2012. There are approaches available now that Bench never offered – including automation that can handle most of the repetitive work at a fraction of Bench’s monthly cost. This article walks through your realistic options, with honest costs and trade-offs for each.
What Bench did well
Before we talk about alternatives, it’s worth being fair about what Bench got right. A lot of people genuinely liked the service, and there are reasons for that.
The Bench experience
Bench paired each customer with a human bookkeeper who used Bench’s proprietary software to categorize transactions, reconcile accounts, and deliver clean monthly books. You didn’t have to learn QuickBooks. You didn’t have to figure out which category a purchase belonged in. You logged in, saw a dashboard that made sense even if you had zero accounting knowledge, and your year-end financials were ready when tax time came around.
For a small business owner who wanted to think about bookkeeping as little as possible, that was a compelling pitch. Simple pricing ($299–$499/month), a real person handling the work, and tax-ready financials delivered on a schedule. No wonder people were upset when it went away.
- Human bookkeepers who learned your business over time
- A dashboard built for non-accountants – clean, simple, easy to read
- Tax-ready P&L and balance sheet delivered monthly
- Flat monthly pricing with no surprises
- You never had to think about bookkeeping – that was the whole point
Why the model failed
Bench raised over $100 million in venture capital and still couldn’t make the numbers work. Understanding why matters, because it tells you something about which alternatives will face the same problems.
The core issue: humans don’t scale
Bench’s model required a human bookkeeper to touch every transaction for every client, every month. As the company grew, it needed proportionally more bookkeepers. Hiring, training, and retaining that workforce was expensive, and quality was hard to maintain. High turnover meant your “dedicated bookkeeper” changed regularly, and each new one needed time to learn your business.
The math was simple and unforgiving: each bookkeeper could handle maybe 20–30 clients. At $299–$499/month per client, the revenue per bookkeeper topped out. But the costs – salary, benefits, management overhead, the technology platform – kept climbing. When venture funding dried up, the gap was terminal.
There were other factors too. Bench’s proprietary platform meant customers couldn’t easily export their data to QuickBooks or Xero if they wanted to leave. That lock-in felt fine when the service was running. When it shut down, it became a serious problem – some users had years of financial records trapped in a system that was about to go offline.
And Bench struggled with complexity. Businesses with multiple entities, inventory, foreign transactions, or unusual tax situations often found that Bench’s one-size-fits-all approach didn’t quite fit. The bookkeepers were competent generalists, but they weren’t specialists.
What to look for in a replacement
Whatever you choose next, these are the questions worth asking. Several of them are things Bench got wrong, and you don’t want to repeat the experience.
Does it work with standard platforms?
Your books should live in QuickBooks Online, Xero, or another standard accounting platform. If a service uses proprietary software, ask yourself: what happens if they shut down too? Your CPA needs to access your books at tax time. Your next bookkeeper needs to pick up where this one left off. Standard platforms make that possible.
Can it handle your transaction volume?
Some services charge per transaction. Others have monthly transaction caps. If you process 200+ transactions a month, these pricing models can get expensive fast. Look for flat or credit-based pricing that doesn’t punish you for having a busy business.
Does it learn your business?
A good bookkeeping solution should get better over time. Your coffee shop buys from the same suppliers every month. Your consulting firm has the same recurring expenses. Whatever system you use should recognize those patterns and not ask you about them twice.
How does it handle sales tax?
If you’re in a state with sales tax (most of you), this matters. Incorrect sales tax classification creates headaches at filing time. Your replacement should handle tax classification as part of the bookkeeping process, not as an afterthought.
Can you review before anything posts?
Whether it’s a human bookkeeper or automated software, you should be able to review the work before it hits your books. Corrections after the fact are always harder than catching mistakes upfront.
What’s the actual cost?
Include everything: the software subscription, the bookkeeping fee, any per-transaction charges, add-ons for tax prep, and your own time if you’re doing part of the work. Bench was expensive, but at least the pricing was straightforward. Some alternatives bury costs in tiers and add-ons.
Option 1: Hire a local bookkeeper
The traditional approach
A local bookkeeper – either an independent contractor or a small firm – handles your books personally. They typically work in QuickBooks or Xero, know the local tax rules, and can sit down with you when something complicated comes up.
Pros
- Personal relationship – they learn your business deeply
- Can handle complex or unusual situations
- Works in standard accounting software you own
- Face-to-face meetings if you need them
- Often doubles as an informal business advisor
Cons
- $300–$800/month depending on complexity
- Dependent on one person – what if they get sick or retire?
- Limited hours – they have other clients
- Quality varies enormously – hard to vet upfront
- May not use modern tools or automation
Best for: Businesses with complex finances (multiple entities, inventory, specialized industries) or owners who value a trusted advisor relationship and can afford the premium.
Option 2: Online bookkeeping services
The closest thing to what Bench offered
Services like Pilot, Bookkeeper360, and 1-800Accountant follow a similar model to Bench: human bookkeepers paired with software, delivered remotely. Some of them literally acquired Bench’s customer accounts after the shutdown.
Pros
- Hands-off experience – someone else does the work
- Professional teams with quality controls
- Most now use QuickBooks or Xero (not proprietary platforms)
- Can scale with your business
- Some include tax preparation
Cons
- $200–$600/month – same ballpark as Bench
- Same fundamental economics that sank Bench
- Bookkeeper turnover is an industry-wide problem
- Quality depends on the individual assigned to you
- Response times vary – you’re one of many clients
Best for: Funded startups or businesses that genuinely need hands-off bookkeeping and have the budget for it. If you can afford $400/month and don’t want to think about categorizing transactions at all, this is the direct Bench replacement.
A word of caution
These services face the same scaling challenge that Bench did. That doesn’t mean they’ll all shut down – many have been around for years and run profitably. But it’s worth asking: does this service rely on human labor for every transaction, or does it use automation to make each bookkeeper more productive? The answer tells you a lot about long-term sustainability.
Option 3: DIY with QuickBooks or Xero
Do it yourself with accounting software
Sign up for QuickBooks Online or Xero, connect your bank feeds, and categorize transactions yourself. This is the cheapest option by far, and millions of small business owners do it. But “cheap” is only part of the equation.
Pros
- $30–$200/month for the software (no bookkeeper fees)
- Full control over your books
- Industry-standard platform your CPA already knows
- Bank feeds pull transactions automatically
- You learn your own finances deeply
Cons
- You’re doing the bookkeeping – that’s the whole trade-off
- 10–20 hours/month for a typical small business
- Easy to make categorization mistakes without training
- Sales tax classification requires knowledge most owners don’t have
- Reconciliation is tedious and error-prone
Best for: Very small businesses with simple finances (one bank account, straightforward expenses, minimal inventory) where the owner has time and willingness to learn the software.
The honest reality is that most Bench customers chose Bench specifically because they didn’t want to do their own bookkeeping. If you’re reading this article, there’s a good chance the DIY route isn’t what you’re looking for. Which brings us to the fourth option.
Option 4: Accounting software + automation
Keep your accounting platform. Automate the boring parts.
This is the approach that didn’t exist when Bench launched in 2012. You use a standard accounting platform (QuickBooks Online, Xero, or Sage) as your system of record. Then you add an automation layer on top that handles the repetitive work – categorizing transactions, classifying sales tax, detecting transfers, matching invoices – so you don’t have to.
You still review and approve the work. But instead of spending 15 hours a month clicking through transactions one by one, you spend 15–30 minutes reviewing what the automation has already done and correcting the occasional mistake.
How CodeIQ fits here
CodeIQ is an automated bookkeeping tool that works alongside your existing accounting software. You upload a bank statement (or connect your platform directly), and it processes the entire month’s transactions in about two minutes. Here’s what it actually does:
- Learns your bookkeeping style – analyzes your existing general ledger history and codes transactions the way you (or your previous bookkeeper) would
- Categorizes everything – account codes, descriptions, transaction types, all from your actual chart of accounts
- Handles sales tax – classifies each transaction with the appropriate tax treatment
- Detects transfers – recognizes when money moved between your own accounts and handles it correctly
- Matches invoices – pairs bank transactions with outstanding invoices, including partial payments
- Gets smarter over time – learns from your corrections and from patterns across all users
- Posts directly to your platform – approved transactions go straight into QuickBooks, Xero, or Sage, reconciled and ready
Pricing starts at $5/month on a credit-based model. A typical small business processes a month’s transactions for a couple of dollars. Compare that to Bench at $299–$499/month.
Pros
- A fraction of Bench’s cost ($5–$15/month for most small businesses)
- Works with standard accounting platforms – no lock-in
- Processes a full month in about 2 minutes
- Learns your specific patterns and improves over time
- You review and approve – you stay in control
- Currently free while the product is growing
Cons
- You still spend 15–30 minutes reviewing each month
- Requires a QuickBooks, Xero, or Sage subscription
- Very complex or unusual transactions still need human judgment
- New tool – less established than hiring an accountant
- You need basic comfort with accounting software
Best for: Small business owners who want something close to the Bench experience – clean books delivered without hours of manual work – but at a fraction of the cost. Also works well for bookkeepers or accountants who manage multiple small business clients and want to handle more of them in less time.
Side-by-side comparison
| Option | Monthly Cost | Your Time | Accuracy | Scalability | Lock-in Risk |
|---|---|---|---|---|---|
| Local Bookkeeper | $300–$800 | Minimal | Depends on the individual | Limited by their hours | Low – your data stays in standard software |
| Online Service | $200–$600 | Minimal | Team-dependent | Good – they add staff | Low/Medium – check what platform they use |
| DIY (QBO/Xero) | $30–$200 | 10–20 hrs/month | Depends on your knowledge | Limited by your time | Low – industry standard platforms |
| Software + CodeIQ | $35–$215 | 15–30 min/month | Improves over time | Handles any volume | None – works with QBO, Xero, Sage |
| Bench (was) | $299–$499 | Minimal | Good when stable | N/A | High – proprietary platform |
The numbers make the case clearly. But cost alone doesn’t tell the whole story. The option that works best for you depends on how much of your own time you’re willing to spend, how complex your books are, and how comfortable you are reviewing automated work versus handing everything to a person.
The bigger lesson from Bench
Bench’s shutdown wasn’t just a company failing. It exposed a vulnerability that a lot of small business owners hadn’t thought about: what happens to your financial records when your bookkeeping provider disappears?
Own your data in a standard system
Your financial records should live in software that you control and that any competent accountant can access. QuickBooks and Xero are the obvious choices – they’re industry standard, widely understood, and your data is always yours. If you switch bookkeepers, switch automation tools, or switch anything else, your books stay put.
Don’t build on proprietary platforms
Bench’s proprietary platform seemed like a feature when it worked. It became a liability when it didn’t. Any tool you add should work with your accounting platform, not replace it. If a service requires you to use their software instead of QuickBooks or Xero, think carefully about what happens if that company shuts down.
Automate the repetitive parts. Keep humans for the rest.
The future of small business bookkeeping looks like a combination: software that handles the pattern-driven, high-volume work (categorization, tax classification, reconciliation), with human judgment applied to the exceptions, the year-end adjustments, and the strategic decisions. You don’t need a human to categorize your 47th Staples purchase this year. You do need one when you’re deciding how to handle a $10,000 insurance payout.
Pay for value, not for labor
Bench charged $299–$499/month because it was paying humans to do repetitive work. That model was always going to be expensive and fragile. Automation-first solutions can deliver the same outcome – clean, categorized, tax-ready books – for a fraction of the cost, because software can process 500 transactions as easily as 50. The savings aren’t small. They’re an order of magnitude.
Try CodeIQ free
Upload a bank statement and see your transactions categorized, tax-classified, and ready to post in about two minutes. Works with QuickBooks, Xero, and Sage. No lock-in, no long-term commitment.
Get Started – It’s FreeFrequently Asked Questions
What happened to Bench accounting?
Bench.co shut down in late 2024 after failing to make its human-heavy bookkeeping model financially sustainable. The company had roughly 35,000 customers at the time. Some customer accounts were acquired by competing services like Pilot and 1-800Accountant, but many small business owners were left to find their own replacement. Bench’s proprietary platform also meant that exporting historical data was difficult for some users.
What is the best replacement for Bench bookkeeping?
The best replacement depends on your needs and budget. If you want a similar hands-off experience, online bookkeeping services like Pilot or Bookkeeper360 offer human bookkeepers paired with software, typically for $200–$600 per month. If you want to spend less, you can use accounting software like QuickBooks or Xero with an automation layer like CodeIQ that handles transaction categorization, sales tax classification, and reconciliation for as little as $5 per month.
Can automated bookkeeping software really replace a human bookkeeper?
For most small businesses with straightforward finances, yes. Modern automation tools can categorize transactions, classify sales tax, detect transfers between accounts, and match payments against invoices. They learn your specific business patterns over time and get more accurate with use. The key difference is that you still review and approve the work before it posts. For complex situations like multiple entities, inventory management, or unusual one-off transactions, you may still want a human bookkeeper or accountant involved.
How much does automated bookkeeping cost compared to Bench?
Bench charged between $299 and $499 per month. Automated alternatives are significantly cheaper. Accounting software like QuickBooks Online costs $30–$200 per month depending on the plan. Adding an automation layer like CodeIQ starts at $5 per month on a credit-based model. Even combining both, you’re looking at roughly $35–$205 per month total. The trade-off is that you spend 15–30 minutes per month reviewing and approving the automated work, rather than having it fully hands-off.
Should I move my books to QuickBooks or Xero after leaving Bench?
Yes, moving to a standard accounting platform is strongly recommended. Bench used a proprietary platform, which is part of why the shutdown was so disruptive. With QuickBooks or Xero, your data is portable, your CPA almost certainly already knows the software, and you can add or remove third-party tools without losing your financial records. Both platforms have bank feed integrations and work with automation tools like CodeIQ for transaction categorization.