Wave Accounting Inc. today announced the closing of its Series A financing round, led by Charles River Ventures (CRV), with the participation of OMERS Ventures. The CDN$5 million in financing allows Wave to continue developing its free online accounting software for small businesses and marketing it internationally.

Wave is already the fastest-growing online accounting application for small businesses. Wave eliminates manual data entry by importing transactions automatically from a user's bank account or electronic statement, and then applies smart technology to make accounting fast and easy. Features like these have led Wave to sign up almost 75,000 small businesses in 198 countries around the world since its launch less than 11 months ago.

Wave is 100% free for its customers, generating revenue by offering sophisticated, ultra-targeted advertising and group-buying opportunities instead of charging its end users expensive subscription fees. American Express, Dell and Grand & Toy are among several dozen advertising partners to date.

Wave's immediate plans include ongoing application development, as well as the launch of a complementary payroll application later this year.