Companies searching for a reliable and high-speed way to transmit financial information can look to electronic document interchange (EDI). The systems, backed with numerous security assurances and an entirely digital basis in an increasingly digital financial world, can grant companies the ease of use and agility benefits they crave. Recent developments in digital payment systems have lent a spotlight to the technology's ability to enable agility.
According to Link2Portal, the U.K. Revenue and Customs department has become so confident in electronic information transfers that it has introduced a new system based on sending updated financial information to the government as it changes, rather than all at once, in a year-end report. The source stated that the change is drastic and the largest alteration to the current payment information collection system since its inception.
The new system assumes some access to electronic data transmission as, according to Link2Portal, the government plans to seek between 30 and 40 data points for each employee on the payroll. The new system will track the movements of workers more effectively than the previous, periodic update model. With the new information, Revenue and Customs hopes to have a current tax profile for each company in its jurisdiction.
Adding EDI as an assumed technological area has freed U.K. agencies to ask more of companies. The implications for companies are clear - what once took significant paperwork and was too slow to accomplish is now an assumed part of the business landscape, expected to provide constant updates. Billing has moved into a new age, leaving the physical statements behind.
EDI for SMBs
Companies of all sizes, descriptions and geographic locations can make use of EDI. CFO magazine recently reported on the systems' important possible role at small and medium-sized companies.
The source gave a plumbing company as an example. The firm, despite being tiny and staffed by members of one family, was forced to complete a staggering amount of paperwork, with hundreds of invoices for each job. CFO noted that the small business altered its processes by adopting a specialized, cloud-based EDI product.
The news source reported that moving paper-based processes into digital space for small companies can lead to efficiency and help recover time previously spent organizing financial information. For companies too small to have a dedicated financial department, anything that helps employees find more free time can be transformative.