AccountsIQ Raises $65M to Enhance Bookkeeping Tools with Artificial Intelligence

The European economy remains unstable, but amidst the chaos, there is a glimmer of hope for enterprise startups. As businesses look for stability and reliability in their financial operations, demand for tools to assist in these processes has risen.

In the latest development, Dublin-founded accounting technology company AccountsIQ has secured a whopping €60 million ($65 million) in funding. With nearly 20 years in business, the mostly bootstrapped company plans to use this investment to revolutionize the finance function for mid-sized companies. Their vision? A cloud-based, AI-driven platform to help accounting departments work smarter, faster, and more intelligently.

Notably, AccountsIQ was founded by accountants who recognized the need for better tools in their own field. As expected from such pedigree, the company has been cautious in their growth strategy.

Even with just €12.7 million in external funding, AccountsIQ has over 1,000 customers, serving 10,000 entities and 20,000 users. With a consistent annual growth rate of 30%, COO Darren Cran sees a bright future ahead.

Their current portfolio includes digital accounting services, digital tax services, and reporting, complete with a wide range of third-party integrations and an API for further customization. These services are available on a SaaS model, starting at a monthly cost of $250 per user.

The platform utilizes Microsoft’s Azure hosting and AI tools, along with in-house developments, to incorporate next-generation services. This includes robotic process automation and AI-based features to streamline tasks for their users.

“We are now poised to take the AccountsIQ product and service to the next level,” said Tony Connolly, founder and CEO of AccountsIQ.

This investment comes at a crucial turning point for AccountsIQ, allowing them to leverage AI technology and further enhance their offerings. The goal? To make finance team roles more versatile, valuable, and exciting.

The amount raised by AccountsIQ is remarkable, not only because it is almost 5 times their previous funding but also because it comes during a challenging time for startups, particularly in its home market.

A report by the Irish Venture Capital Association revealed a 48% decrease in startup funding in Ireland in the first quarter of this year compared to the previous year.

Despite the current hype around AI startups and their supporting counterparts, the value of solutions that enable companies to operate more efficiently cannot be ignored. This is evident in the attention given to “boring” accounting startups.

“Recognizing the potential to accelerate AccountsIQ’s product development with additional capital and expertise, we are excited to be partnering with them to scale AIQ to the next level,” said Martin Wygas, founding partner of Axiom Equity.

For comparison, SMB-focused accounting startup PennyLane raised $40 million a few months ago, valuing the company at over $1 billion and amassing over 120,000 users. However, AccountsIQ’s main investor for this round, Axiom Equity, is not disclosing their valuation.

While PennyLane and similar companies aim to replace established players like Xero, QuickBooks, and Sage in the small business market, AccountsIQ positions itself as the go-to platform for growing businesses.

In conclusion, amid a shaky economy, AccountsIQ’s funding round showcases the growing demand for reliable and efficient financial tools. With a solid vision and experienced team, the company is well-positioned to become the go-to platform for mid-sized companies looking to streamline their accounting processes.