Overview

In this use case, I designed Virto to operate as an advanced, decentralized ERP and AP platform designed specifically for LatAm companies. The system leverages a conversational AI to automate, trigger, and manage invoicing, payments, reimbursements, and accounting records, thereby reducing human intervention and manual work in financial processes.

Primary Goals

1. Automation of Financial Processes: Utilize AI to manage invoicing, payments, reimbursements, and financial records autonomously.

2. Transparency & Security: Ensure all transactions are verified on the blockchain, providing a transparent and immutable financial record.

3. Cost Efficiency: Reduce transaction fees and time associated with traditional banking and international transfers within LatAm regions.

4. Localized Compliance: Adapt financial processes and record-keeping to meet various LatAm regulatory requirements.

Key Functionalities

1. Automated Invoicing: AI algorithms handle invoice generation based on predefined triggers (e.g., project milestones, time-based triggers, or service usage). The DAO monitors transaction histories and generates invoices when a certain threshold or condition is met.
   
   

   

   
   

2. Autonomous Payment Processing: The DAO automates payments, managing transactions from vendor payments to employee reimbursements. Smart contracts initiate payments when an invoice or reimbursement request is approved, either by meeting predefined criteria or through a rapid AI-led approval process.
   
   

3. Automated Accounting & Bookkeeping: AI categorizes and records transactions in real-time, creating a transparent ledger that complies with LatAm accounting standards. Records are stored immutably on the blockchain, accessible for audits or real-time review.
   
   

   

   
   

4. Localized Compliance Monitoring: The DAO integrates AI to monitor and adapt to LatAm-specific regulations, such as tax compliance, currency conversion regulations, and payment methods. AI continuously scans for policy changes, ensuring the DAO operates legally across LatAm countries.
   
   

5. Multi-Currency and Localized Payment Options: The platform manages multi-currency transactions, allowing LatAm companies to convert and settle payments in local currencies, reducing international transaction costs and delays.

Example Workflow

1. Invoice Creation & Automation:

   • A freelancer completes a project phase, logging hours or deliverables.

   • The DAO, through AI, recognizes the completed milestone and auto-generates an invoice based on pre-established rates.

   • The invoice is recorded on the blockchain and accessible to relevant parties for review.

2. Payment Processing & Transfer:

   • The system’s AI validates the invoice against project guidelines and releases the funds through a smart contract.

   • Funds are transferred automatically, using localized currency options if needed, directly to the freelancer, with minimal transaction fees.

3. Expense Reimbursement:

   • An employee submits a reimbursement request for travel expenses.

   • The DAO’s AI cross-references the claim against company policies, flagging any discrepancies for manual review if necessary.

   • Once validated, the system triggers an automated transfer to the employee’s account.

4. Automated Bookkeeping:

   • Each transaction is recorded, categorized, and stored in the blockchain ledger, adhering to LatAm financial reporting standards.

   • The DAO’s AI monitors financial records for regulatory compliance, identifying potential issues and notifying stakeholders.

5. Reporting & Audit Readiness:

   • The DAO continuously compiles accounting data into customizable reports, ready for tax filings, audits, or investor reviews.

   • This data is secure and accessible in real time, ensuring LatAm companies have visibility into their financial health.

Benefits

• Reduced Operational Costs: Automation and decentralized management reduce the need for an extensive accounting and finance team.

• Improved Accuracy: AI minimizes human error in invoice processing, payment management, and record-keeping.

• Regulatory Compliance: The DAO's AI constantly updates to reflect LatAm’s evolving financial regulations, ensuring legal and tax compliance.

• Real-time Transparency: All transactions and records are accessible on the blockchain, fostering trust and transparency between all stakeholders

Results

We onboarded 2 new clients now moving near 180K USD MoM, weekly moving 18K USD in logistics activities through Virto.