Need an all-in-one workflow tool, or a specialized, compliant invoicing service?
Freelancers all across Europe are finding that managing and growing their business is better than ever. With the right tools for the job, and a country like Estonia or the Netherlands backing you up, the sky is truly the limit.
But freelancers often struggle with getting paid –– easily, on time or confidently –– while balancing their work and other tasks.
You need tools to organize projects, track your hours and collaborate with clients effectively. Paymo excels in helping freelancers manage these tasks.
And you need to handle invoices, payments, pay taxes and stay compliant throughout. Xolo takes the baton for you in all of these.
Freelancers in Europe needn’t debate which tool is better –– Paymo vs Xolo –– but rather learn what these services do and how to combine them for ultimate productivity and compliance. Let’s find out how it works in a quick and easy article today.
What Is Paymo?
Paymo is a comprehensive project management and time-tracking tool built for freelancers and small teams. It helps you plan, execute, and bill your work — from first task to final payment.
Paymo covers your workflow ‘from planning to payment.’
Paymo’s key features
- Task & project management: Kanban boards, Gantt charts and to-do lists to organize client projects
- Time tracking: Built-in timers and timesheets to track billable hours accurately
- Expense tracking & reports: Record project expenses and generate client reports.
- Built-in invoicing: Convert timesheets and expenses into branded invoices instantly
- Online payments: Integrates with Stripe, PayPal and other gateways for quick client payments
- Team collaboration: Assign tasks, manage workloads, and schedule project timelines for small teams.
Paymo’s pricing
Paymo offers a free tier (limited projects/users) and paid plans from roughly €5–€11 per user/month.
What we love about Paymo
If your biggest pain point is organizing your day-to-day freelance workflow — managing projects, clients, and hours — Paymo is an excellent choice.
However, while Paymo generates invoices, it doesn’t handle legal compliance, VAT filings, or tax reports — and that’s where Xolo steps in.
What Is Xolo?
Xolo is an invoicing, payments and compliance platform designed for European freelancers and solopreneurs.
Built by freelancers, for freelancers. Xolo makes it possible to legally invoice clients without needing to register a business; when you’re ready to create a business, Xolo has you every step of the way from company formation to cha-ching!
Xolo’s key features
- Send legally compliant invoices to clients worldwide
- Receive payments via bank transfer or card (no need for separate gateways)
- Handle VAT and taxes automatically (with Xolo Leap)
- Operate under a business entity (with Xolo Go, even if you don’t have your own company)
Xolo’s pricing
It’s free to create and send professional, compliant invoices with Xolo. On this free service, users pay 5.9% on withdrawals when receiving client payments directly to their bank accounts.
What we love about Xolo
Xolo is designed to meet your freelance business at any stage. Xolo Go is the product that lets you invoice clients for free, paying only when you withdraw. Xolo Leap helps you create a registered business, handle accounting with ease and so much more.
No matter what stage of your freelance career you’re at, Xolo has you covered.
Paymo vs Xolo: Feature comparison
|
Feature |
Paymo |
Xolo |
|
Project management |
✅ Kanban, Gantt, tasks, team scheduling |
❌ Not included |
|
Time tracking |
✅ Built-in timers and reports |
❌ Not included |
|
Invoicing |
✅ Convert time/expenses to invoices |
✅ Legally compliant, VAT-ready invoices |
|
Payment collection |
✅ Stripe, PayPal integrations |
✅ Client pays Xolo → payout to you |
|
Compliance & taxes |
❌ User handles VAT/taxes manually |
✅ Automatic compliance & filings (Leap) |
|
Entity support |
❌ Requires your own business |
✅ Go provides one for you |
|
Best suited for |
Workflow and productivity |
Invoicing, payments, and compliance |
Should you combine Paymo and Xolo services as a freelancer?
For many freelancers, this is the ideal setup.
Paymo and Xolo’s products complement each other well, allowing freelancers and entrepreneurs to:
- Manage projects in Paymo: Track time, plan tasks, and organize deliverables
- Export your timesheet or project summary
- Invoice through Xolo: Create a compliant invoice under your Xolo entity and attach the Paymo report
- Get paid via Xolo: Clients pay into your Xolo account; taxes and VAT are handled automatically.
This combination gives you Paymo for productivity and Xolo for compliance — a seamless end-to-end workflow for European freelancers. Where Paymo admin support ends, Xolo’s pivotal compliance-first invoicing solution takes over.
If you only use Paymo
You’ll manage project work and invoicing in one place. Perfect if you’re comfortable handling your own compliance and VAT. But you’ll need to:
- Register your business
- Handle tax filings
- Manage payment gateways
If you only use Xolo
You’ll simplify invoicing and tax compliance, but you’ll still need another app for managing tasks or tracking hours.
Are Paymo and Xolo ideal for scaling your freelance business?
Indeed! If you’re growing into a small agency, Paymo supports team collaboration and project scaling as you expand.
Xolo perfectly grows alongside your solo business, with Xolo Leap handling incorporation and bookkeeping for your company. If your business evolves in both directions, the combination of Paymo and Xolo keeps your workflow scalable and legally sound.
Do Paymo and Xolo both work internationally for freelancers?
Global freelancers can use Paymo’s multi-currency support and tax rates, but Paymo leaves the admin and compliance to you on both. Exchange rates, form filling and other odds-and-ends will be necessary details.
Xolo will ensure your international payments are compliant and easy, with SEPA and card payments made under its own registered EU entity.
Paymo keeps you productive globally, and Xolo keeps you compliant.
Work smarter with Paymo & paid better with Xolo
Paymo and Xolo aren’t competitors — they’re complements.
European freelancers can readily use both services to handle less admin, automate their invoicing and manage workflows confidently.
Simplify your freelance admin with Xolo Go or Xolo Leap to get started.
Related Reading
- Xolo vs Wave: Simplifying Freelance Invoicing and Accounting
- Xolo vs Zoho: Which Solution Is Best for European Freelancers?
- How to Invoice International Clients as a European Freelancer
Frequently Asked Questions
What’s the difference between Xolo and Paymo?
Paymo is a project management and time-tracking tool with invoicing, while Xolo is a freelance invoicing and compliance platform built for European freelancers.
Can I use Paymo for invoicing clients in Europe?
Yes! Paymo lets you create invoices and accept payments, but you’ll need to handle taxes and compliance yourself.
Does Xolo integrate with Paymo?
Not directly, but freelancers can use Paymo for managing projects and time tracking, then use Xolo to issue legally compliant invoices.
Which is better for freelancers — Paymo or Xolo?
If you need project management, go with Paymo. If you want hands-free invoicing and compliance, go with Xolo. Many freelancers use both together.
Does Paymo handle VAT or tax filings?
No. Paymo includes VAT fields but doesn’t manage filings or payments. Xolo automates this for you.
Which tool is better for international freelancers?
Paymo helps manage work globally, while Xolo ensures payments and taxes are compliant under EU law.