BASDA's links with banking open up EDI

Software developers have forged links with the banking industry to simplify the process of integrating financial electronic data interchange (EDI) into accounting systems. Financial EDI represents a major step forward for business transactions over existing manual and electronic systems.

Developers have cooperated through the trade association BASDA to improve the automated import and export of transactions into and out of their computer-based accounting systems. Agreement has been reached over electronic payments and remittance advice notes, as well as an electronic statement feed between the different systems to support automated reconciliation.

BASDA’s tie-up with the banking industry is the latest of several initiatives in electronic commerce. Earlier this month the Electronic Commerce Association set up its first forum for business users on the Internet. The Business on the Internet interest section is intended to operate as a permanent forum for exchanging ideas, information and experience.

The ECA’s chief executive, Dr Roger Till, said: ‘We will be very pleased to endorse the work undertaken by the banking industry and BASDA. The explosion of interest in this aspect of the information superhighway underlines the need to develop best business practice principles for the Internet and World Wide Web.’

The cost of using EDI has, in the past, been a significant obstacle to companies. BASDA director Dennis Keeling added: ‘Most businesses use computers in their day-to-day operations, but getting the full benefit has not been easy or within the reach of many small and medium-sized enterprises. This is a significant initiative which will enable companies of all sizes to fully integrate financial EDI into their existing business processes.’

Organisations running trials of the new systems should begin test transmissions towards the end of the year.