IRIS Software Group has acquired cloud-based bookkeeping software specialists KashFlow to create a joint subscriber base of more than 60,000 accountancy firms and SMEs in the UK.

The terms of the transaction were not disclosed. KashFlow was founded in 2006 by Duane Jackson, and is a pioneer in the development and delivery of cloud-based bookkeeping software-as-a-service (SaaS).

Phill Robinson, chief executive officer of IRIS Software Group, said: ' KashFlow's superb cloud services are the perfect fit with our existing suite of products.'

IRIS will continue to provide its current IRIS OpenBooks product, which is supplied through a partnership with FreeAgent, to its existing customers but says it expects to provide additional functionality for accountants and SMEs through integration between the IRIS Accountancy Suite and KashFlow bookkeeping in the cloud. Around half of all UK accountancy practices run IRIS software and the supplier has 30,000 SMEs using its payroll solutions.

Duane Jackson, founder and CEO of KashFlow said: 'Being part of the wider IRIS Software Group not only gives us direct access to a significant section of the UK accountancy and SME sector but it also makes us part of a wider suite of cloud offerings. This will help us deliver on our vision of further automating and simplifying the process of running a small business, enabling entrepreneurs to cut through the red tape.