Sector:

Accounting & Compliance

Area of Implementation:

Conversational AI, Financial Analysis, Tally Integration, Personal Accountant

Technology Used:

Python, React + Vite, Tally XML Integration, Large Language Models (LLMs)

Brief Description of the Use Case:

AIFinChat – An Accounting Catalyst is an AI-powered chatbot framework designed to bridge the gap between traditional bookkeeping systems and intelligent query resolution. It enables users, particularly accountants and SME business owners, to chat with their books of accounts in natural language, thereby demystifying financial data and accelerating decision-making.

The system extracts transactional data (specifically the Daybook) directly from Tally ERP via XML integration, processes it using Python, and enables interactive, intelligent querying using AI models. The chatbot not only provides contextual answers like “What is my cash balance as on 31st March 2025?” but also undertakes compliance-specific filtering and generates financial statements for non-corporate entities as prescribed by the Institute of Chartered Accountants of India (ICAI).

Technology Stack Used:

Frontend: React with Vite (for lightweight and performant UI)

Backend: Python Flask (for handling Tally integrations, data processing, and AI logic)

Data Source: Tally ERP (via XML request-response)

AI/NLP: Gemini AI via API

Processing Libraries: asyncio, websockets, pandas, requests, openpyxl, smtplib, numpy, tkinter, lxml and other minute libraries

Key Functionalities:

1. Daybook Export from Tally: Fetches Daybook entries using XML integration from Tally ERP.
2. Automated Data Structuring and Cleansing: Parses and cleans data for analysis.
3. AI-Powered Query System: Supports natural language queries like ‘What is the turnover for Q4 FY 2024-25?’
4. Compliance-Driven Data Insights: Identifies tax-sensitive items and disallowances.
5. E-mail Straight From Books: Transmit Accounting Statements to stake holders via E-mail.
6. Financial Statement Generation: Converts raw data into ICAI-compliant Trading, P&L, and Balance Sheet.

Business Benefits:

Time-Saving: Reduces time on ledger scrutiny and reporting.

User Empowerment: Enables non-experts to interact with accounts.

Compliance Readiness: Flags tax audit concerns automatically.

Scalability: Easily extendable to multiple clients.

Accuracy: Reduces manual errors.

Challenges Faced and Overcome:

Integration with Tally's XML gateway: Solved via Connecting to ODBC Server.

NLP accuracy: Addressed using fine-tuned AI prompts.

ICAI-compliant statements: Automated using reusable templates.

Screenshot of the Use Case:

Conclusion:

AIFinChat combines Tally integration, data science, and conversational AI into a seamless interface for real-time financial data interaction. It is an effective tool for Chartered Accountants, SME consultants, and auditors looking for enhanced productivity and precision.

Future Scope:

1. Integration with ITR and GSTR tools
2. Voice-enabled query support
3. Client risk profiling and compliance scoring
4. API-based multi-entity management with access control