Botkeeper Is Shutting Down: Here's What to Do Next

Botkeeper Is Gone. Your Bookkeeping Can't Stop.

On February 7, 2026, Botkeeper founder Enrico Palmerino announced that after 11 years and nearly $90 million in funding, Botkeeper is closing its doors. The platform that many firms relied on for automated bookkeeping, transaction coding, and bank reconciliation is winding down, effective immediately.

If you're one of the firms affected, you're probably asking two questions right now: What do I move to? and How do I make sure this doesn't happen again?

This guide covers both.

What Botkeeper Did Well

Credit where it's due. Botkeeper was a pioneer in AI-powered bookkeeping. Their Infinite platform could code 80%+ of transactions with 98% accuracy, clean up messy historical data, and automate reconciliation. They pushed the entire accounting profession to take AI seriously.

But as Palmerino himself wrote: "Despite our technological triumphs, we did not reach a level of product-market fit strong enough to withstand rapid industry shifts." A series of client consolidations in late 2025 gutted their revenue, and capital ran out.

The lesson for every firm evaluating software: technology alone isn't enough. You need a provider with sustainable economics, clear product-market fit, and a customer base that isn't concentrated in a handful of accounts.

What to Look for in a Botkeeper Replacement

Not every "AI bookkeeping" tool does what Botkeeper did. Here's what actually matters when evaluating alternatives:

1. Line-Item Extraction, Not Just Totals

Botkeeper processed full transactions with line-level detail. Many OCR tools, including HubDoc and basic Dext plans, only capture header information: supplier name, date, total amount. If you're processing multi-line invoices for wholesale, construction, or professional services clients, you need every line extracted with descriptions, quantities, unit prices, and account codes.

2. Automatic Account Coding

Botkeeper learned your coding patterns over time. Your replacement should do the same, not force you to build manual rules for every supplier and transaction type. Look for AI that learns from your corrections and applies that knowledge to future documents automatically.

3. Bank Statement Processing

If you used Botkeeper's statement automation feature, you need a tool that can handle PDF bank statements, any bank, any format, any length. Most legacy tools either can't do this, charge extra for it, or choke on statements longer than 10 pages.

4. Multi-Language and Handwriting Support

If your firm serves clients with non-English documents, Chinese fapiao, Arabic invoices, handwritten receipts, your replacement needs to handle these natively. Most OCR tools only work reliably on clean, English, typed documents.

5. Sustainable Business Model

Botkeeper raised $90 million and still couldn't survive. Ask your next vendor: Are you profitable or on a clear path to profitability? How diversified is your customer base? What happens to my data if the company shuts down?

How Tofu Compares to Botkeeper

Tofu is an AI document processing platform built specifically for accounting firms. Here's how the capabilities line up:

What Tofu Does That Botkeeper Did

AI transaction coding: Tofu learns your chart of accounts, tax rates, and supplier coding patterns automatically. Connect your Xero or QuickBooks account, and Tofu reads your historical transactions to understand how you code. No manual rule-building required.

Line-item extraction: Every line on every invoice, descriptions, quantities, unit prices, account codes, tax treatment. Not just the header and total.

Bank statement processing: Upload any bank statement PDF, any bank, any format, even 100+ pages. Tofu extracts every transaction with date, description, amount, and debit/credit classification. Export to your accounting software or CSV.

Duplicate detection: Tofu checks every document against your processing history before publishing. Catches duplicate invoice numbers, same supplier + date + amount combinations, and document fingerprints.

What Tofu Does That Botkeeper Didn't

200+ language support: Chinese, Arabic, Thai, Japanese, Korean, Malay, Hindi, Zulu. Tofu processes documents in over 200 languages without requiring manual translation or language selection.

Handwritten document recognition: Wet market receipts, handwritten invoices, scribbled notes. The documents that every other tool rejects? Tofu reads them.

Auto-split multi-document PDFs: Client sends a 50-page PDF with 30 different invoices? Tofu detects document boundaries and splits automatically. No more manual page-by-page splitting before you can start processing.

Click-to-verify: Click any extracted field and the document zooms to exactly where that data appears on the original. Bounding box shows what the AI read. Verify in seconds, not minutes.

Flat-rate pricing with unlimited users: Tofu charges a flat monthly fee, starting at $79/month, with unlimited team members. No per-user fees, no per-document charges. Your whole team gets access without the billing math.

Pricing: Botkeeper vs. Tofu

Botkeeper's pricing was opaque and typically ran into the thousands per month for mid-sized firms. Tofu's pricing is straightforward:

Pro Plan: $79/month, up to 10 client entities, unlimited users

Business Plan: $199/month, up to 50 client entities, unlimited users

Enterprise: Custom pricing for larger firms

No per-document fees. No per-user charges. No surprise costs when you add a junior bookkeeper or process a 100-page bank statement.

Migration: Moving from Botkeeper to Tofu

The transition is simpler than you might expect:

Step 1: Connect your accounting software. Link your Xero or QuickBooks Online account. Tofu pulls your chart of accounts, tax rates, contacts, and historical transactions automatically. This takes about 15 minutes.

Step 2: Upload a few documents. Start with a handful of invoices or a bank statement from your messiest client. See the extraction quality for yourself.

Step 3: Review and correct. Tofu's AI won't be perfect on the first document. But every correction teaches it. Within a few rounds, it learns your firm's specific coding patterns.

Step 4: Scale. Once you're confident in the accuracy, enable bulk posting and start processing your full client load. Most firms are fully transitioned within a week.

What About Dext and HubDoc?

They're the other names that come up when firms look for bookkeeping automation. Here's the quick comparison:

Dext charges per user, requires manual rule setup for every new client, and charges extra for line-item extraction. Their pricing can easily exceed $300/month for a small team. Setup takes hours per client, and when staff leave, the rules they built leave with them.

HubDoc was acquired by Xero and hasn't seen meaningful product development since. It only captures totals (not line items), struggles with non-English documents, and currently sits at a 3.5-star rating on the Xero App Store. It's also not available in all Xero markets. Malaysia, for example, doesn't have HubDoc access.

If you were using Botkeeper for its AI coding and full transaction processing, neither Dext nor HubDoc will give you the same level of automation without significant manual workarounds.

Why Firms Trust Tofu

Tofu serves 700+ accounting firms across 50+ countries. Here's what we hear consistently:

"It's posting almost 99% accurate information into the system." WeChartered, UK

"Between yours and HubDoc is night and day. HubDoc, I might as well do it myself." Kathy, Tradie Books, Australia

"If I can get them in less than five minutes... isn't it amazing?" Premium Fix, Namibia (on bank statements)

"This is the game changer in bookkeeping." Aryan, Abdullah Chartered, UK

Tofu is ISO 27001 certified, GDPR compliant, hosted on AWS Frankfurt, and passes annual penetration testing by third-party security firms. Your client data is encrypted at rest (AES-256) and in transit (TLS 1.3).

The Bottom Line

Botkeeper's closure is a wake-up call for every firm that depends on a single tool for bookkeeping automation. The technology was impressive, but it wasn't enough to sustain the business.

If you're looking for a replacement, look for a tool that gives you the same AI coding and transaction processing capabilities, plus the document handling (languages, handwriting, bank statements) that Botkeeper never offered, at a price that doesn't require $90 million in funding to sustain.

Tofu does exactly that. Start a free trial and upload your messiest documents. No credit card required.