Abstract: A system and method that provides the exchange of electronic data interchange (EDI) and electronic fund transfers (EFT) type transactions between trading partners having incompatible accounting database systems is herein provided. The system utilizes a distributed network system connecting one or more client computers representing trading partners and banking institutions to a network server. Each client computer stores data representing EDI and EFT type transactions in an accounting database having a file format that differs from one or more of its associated trading partners. A set of transactions are extracted from an accounting database and converted into a universal file format that is used to exchange data between the various client computers. The universal file format utilizes a freestyle format that accommodates any data element associated with the transactions and is not constrained to a predefined format.