XML: Enhancing The Exchange Of Information On The Internet

Abstract

This paper presents the argument that XML (eXtensible Markup Language) is a critical new technology that has important implications for accounting researchers and practitioners because it aims to replace EDI (electronic data interchange) as the primary means organizations communicate business transactions.  XML has two primary advantages over traditional EDI that accountants must understand:  1) XML documents are native to Internet applications and thus XML document can utilize Internet tools and applications and 2) XML documents can be directly incorporated into “backend” database management systems which has the potential to eliminate or dramatically reduce data entry tasks.  Not only does eliminating data entry reduce labor costs, it is also likely to reduce data entry errors.