INTERNET-BASED accounting platform AccountsIQ has raised €3.5 million in its latest funding round.

The firm was backed by a number of investors including Data Electronics Investments, the investment arm of Data Electronics Services (DES), existing investors Enterprise Equity, AIB Seed Capital Fund and AccountsIQ chairman Gerry McKeown.

The money will go towards financing expansion overseas and product development.

AccountsIQ provides a platform that gives accountants, franchisers and businesses the ability to access accounts and business records over the internet in a secure, real-time environment that has minimal overhead costs.

Launched in 2007, the platform has more than 1,500 users in Ireland, Britain, Australia, the US, India and Portugal. A previous funding round in 2008 raised €1 million.

This time, the firm plans to use the investment to push software as a service in new territories.

“We’ve lots of plans – continuing to develop the product, for example. But it’s mainly around increasing the marketing for the offering and also bringing it to more international markets,” said the firm’s chief executive, Tony Connolly. “The UK is a big market for us and we need to get more exposure into it.

“Ultimately we’ll bring it into the US. We already have customers there, but our main focus over the next 12 months is going to be in the UK.”

Raising the investment was challenging, Mr Connolly said.

“Funding for all sorts of projects has severely dried up in the last 12 months,” he said. “The area does have a certain attraction to it – cloud computing and offering online applications – over traditional software offerings, but I couldn’t say it was easy.”

As part of the deal, DES will provide a guarantee to underwrite provision of the AccountsIQ service.

“We are very aware of the rapid trend towards using the internet to deliver secure online solutions,” said DES chief executive Maurice Mortell.