AccountsIQ secures €3.5 million equity investment

10 Dec 2009

Data-centre player Data Electronics is among a group of investors who have taken part in a €3.5-million funding round in fast-growing cloud software firm AccountsIQ.

Data Electronics Investments (DEI), the investment arm of Data Electronic Services (DES), led the round with support from existing investors Enterprise Equity, AIB Seed Capital Fund and industry veteran Gerry McKeown.

Helping expansion

The funding will facilitate AccountsIQ’s continued international expansion and product development plans through to profitability. As part of its investment, DES will provide a Service Continuity Guarantee to underwrite the provision of the AccountsIQ service.

Speaking with, AccountsIQ’s chief executive Tony Connolly said the investment will enable the company to grow into emerging markets for cloud-computing services.

He said the major contract his company won with the Australian arm of Deloitte to provide SMEs with online accounting services is a good indicator of the global direction AccountsIQ is heading in.

“AccountsIQ’s business model centres on recurring revenues as firms move from investing in software as a capital investment to an operational expenditure.

“This means it takes time for cloud computing ventures to build up recurring revenue streams and what is vital is good working capital resources to build the company as it goes about closing deals.

“We are committed to the cloud and software-as-a-service as an operational expenditure business model. Even though it is new technology it is gaining recognition and we will be focusing on opening up new markets, particularly the UK and the US.”

Internet accounts access

AccountsIQ has developed an innovative online accountancy platform that allows accountants, franchisers and businesses with multiple locations to access their accounts and business records via the internet in real time, with total security and minimal overhead costs. It was launched commercially in 2007 and already has more than 1,500 live users in Ireland, UK, Australia, USA, India and Portugal.

Brian Kelly, chairman of Data Electronic Services, said: “This investment reflects our belief that AccountsIQ has developed a truly innovative proposition that represents the future of online accounting and business solutions.

“As investors in managed services over the past 10 years, we are very aware of the rapid trend towards using the internet to deliver secure, online solutions. This trend will mean increasing numbers of businesses will move their accounting and business services into the cloud. AccountsIQ is leading the way in this growing market.”

Gerry McKeown, chairman of AccountsIQ, noted: “It is a great testament to the AccountsIQ proposition that it attracted this funding in the current climate. The AccountsIQ product represents over 40 man-years of product development and is now well proven in the marketplace, particularly in business with multiple locations.

“It is now set to capitalise on the major move to online services that businesses are making internationally.”

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years