Xolo vs Akaunting: DIY Accounting’s Hidden Cost for Freelancers

Europe harbors some of the greatest opportunities for freelancers and solopreneurs across the globe. But tooling hasn’t always kept up with the demands and growing needs of freelancers. European freelancers juggle invoices, VAT regulations, (sometimes multiple) tax deadlines –– all of which can quite often be done cross border. 

Too long; didn’t read? We got you covered.
✔️ Need fast, VAT-compliant invoicing without registering a company? → Xolo Go
✔️ ️Want your own EU company with full accounting handled for you? → Xolo Leap
✔️ Already self-employed and comfortable managing your own books? → Akaunting

You could opt to DIY (do-it-yourself) these obligations with free software like Akaunting, or you could delegate admin like this to a service like Xolo Go or Xolo Leap.

This guide compares both, so you can choose the right service for your business and business’ stage.

What service does Akaunting offer EU freelancers?

Akaunting offers a free and open-source accounting software service to registered business owners in 100+ countries. If you want full control over your business’ accounting, Akaunting can:

• Send unlimited invoices
• Manage multi-currency payments
  
• Track expenses and generate reports
• Extend features with apps (inventory, payroll, et cetera).

Akaunting does not handle VAT calculations, assist with filing your taxes and handling returns, or ensuring your business remains compliant. You will need a registered business to successfully use Akaunting.

What can EU freelancers do with Xolo Go & Leap?

Xolo was built by freelancers, for freelancers. And since 2014 has grown to assist future business owners get registered (under Estonian e-Residency) and scale.

Two products from Xolo can meet you at any stage of your career:

• Xolo Go → lets you invoice clients legally without opening a company. Xolo provides the legal framework, VAT-compliant invoices, and a business IBAN (EU bank account number) for payouts.
• Xolo Leap → sets up and manages your own EU company (often via Estonia’s e-Residency). Xolo’s accountants handle bookkeeping, VAT filings, and annual reports. A true, comprehensive package.

Xolo does not leave you with the admin side of running your business –– Xolo’s design and team are dedicated to helping each individual business with live support and a suite of cost-effective services.

Xolo vs Akaunting features –– compared

Free is often the tastiest price, for young businesses in particular. 

We oftentimes misunderstand the implications of free. Where one service offers something at no cost, another paid service arrives to fill the gaps. It’s not always easy for us, as freelancers and entrepreneurs, to understand that we’re paying for one, two (maybe three) additional services because our free service wasn’t cutting it for us.

Invoicing and payments

Xolo Go offers a free invoice generator and sending tool (but charges 5,9% per invoice when paying out to your bank account). 

Who might you pay in addition to Xolo? Possibly a bank, for a business bank account –– it’s not necessary for most businesses.

Akaunting is flexible and free, but handles zero compliance tasks, doesn’t orchestrate payments, and leaves everything up to your ability (and comfort). 

Who might you pay when using Akaunting? You may have to pay for a business bank account, the government where you register your business, an accountant and a service like PayPal for processing payments.

Accounting and compliance

We’ve dabbled in this topic already, but can go deeper with how these services differ and in what way it might affect your business.

Akaunting handles bookkeeping (income, expenses and reports), but you or your accountant must file VAT returns and taxes.

Xolo Go handles VAT on every invoice and pays you the net income on invoices after taxes.

Xolo Leap includes dedicated accountants who handle your bookkeeping, tax filings and compliance from end to end.

If you fear making a mistake on VAT or year-end reports, Xolo’s managed setup is far safer and doesn’t break the bank.

Company Setup and Registration

Many freelancers have to ask the pesky question of “Do I need to start a company to do my job?” 

The answer is ‘No!’ you don’t, but you do need a service that can assist you. 

Akaunting assumes you have a company or freelance registration in place and good-to-go. That means registering your business before you can start using their service. For some, that’s not a problem (or already in the bag).

Xolo Go works if you don’t have a company –– send invoices, track expenses, easy.

Xolo Leap helps you set up a company (under Estonia’s e-Residency business offer for international peoples) and handles all your accounting from day one and beyond. Awesome.

Can my business scale worldwide with either service?

Akaunting and Xolo work worldwide! Akaunting supports 50+ languages and currencies, making it ideal for tech-savvy users.

Xolo is designed for freelancers everywhere. Start with Xolo Go → Upgrade to Xolo Leap when your business is ready to register and grow.

How local VAT & compliance differences may affect your choice

Every EU country has its own set of unique rules for freelancers; setting up your business in various countries can weigh heavy on your decision to choose an invoice and accounting service provider.

We’ve broken down the basics in a few European hot-spots so you can be über-informed prior to wrapping up this guide.

🇪🇸 Spain: IVA from Day One + Veri*Factu 2026

Spain’s tax agency (AEAT) requires most autónomos to register for IVA immediately. There’s no VAT-free threshold.

• Veri*Factu (from July 2026): Spain will mandate certified billing software for all autónomos and companies — requiring real-time invoice reporting to AEAT.
• DIY impact: Akaunting users must ensure Veri*Factu compatibility.
• Simpler route: Xolo Go or Leap already issue VAT-compliant invoices with AEAT-ready formatting.

👉 Learn more: Spain’s Veri*Factu 2026 requirements

🇳🇱 Netherlands: KOR Scheme & E-Invoicing Reality

• KOR exemption: If your annual turnover ≤ €20,000, you can opt into KOR to avoid charging VAT.
• B2G e-invoicing is mandatory; B2B e-invoicing is voluntary for now.
• DIY impact: Akaunting users must configure invoices to reflect KOR if applied.
• Simpler route: Xolo Go helps if you haven’t registered yet; Xolo Leap handles VAT and filings automatically.

👉 Read next: How KOR affects Dutch freelancers

🇩🇪 Germany: New VAT Thresholds + B2B E-Invoicing

• From 2025: Kleinunternehmerregelung increases to €25,000 (previous year) / €100,000 (current year).
• E-invoicing mandate: Starting Jan 2025, B2B e-invoices become mandatory (phased in).
• DIY impact: Akaunting users must ensure structured invoice format and VAT logic.
• Simpler route: Xolo Leap automates VAT filings; Xolo Go already meets EU invoice standards.

👉 Check: Germany’s 2025 e-invoicing guide

🇵🇱 Poland: VAT Exemption & KSeF 2026

• VAT exemption: Available up to PLN 200,000 (likely rising to PLN 240,000 in 2026).
• KSeF e-invoicing: Becomes mandatory in 2026 (Feb for large taxpayers, Apr for others).
• DIY impact: Akaunting users must ensure invoices integrate with KSeF.
• Simpler route: Xolo Leap automates VAT reporting; Xolo Go covers international invoicing legally.

👉 Guide: Poland’s KSeF e-invoicing deadlines

Choose between Akaunting & Xolo for your freelance business

By now you may realise the choice is down to who you are, more than your business. 

Are you the “I got this handled” entrepreneur, keen on cutting out some small costs and tackling accounting on your own? 

Or are you the “Let me focus” solopreneur looking to cut back on some admin tasks and worry, perhaps just needing a solid invoice tool without extra tasks?

No matter where your business is at, Akaunting and Xolo have unique offerings tailored to ensure your needs are met.

Simplify your freelancer career with Xolo in just minutes

💡 Start invoicing today with Xolo → or build your EU company without the admin with Xolo Leap.

Either way, our team has your back and we look forward to helping you grow your business.

Send an invoice today –– free –– with Xolo Go.