Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
The Reconciliation Flow
Transaction Arrives
Bank: Wise Business
Date: 2024-01-15
+€3,500.00
From: Acme Corp (DE89370400440532013000)
Reference: INV-2024-0042
Xolo syncs with Wise automatically. New transaction detected.
Invoice Matching
Invoice Found
INV-2024-0042
Client: Acme Corp
Amount: €3,500.00
Status: Pending
Match Confirmed
Reference matches ✓
Amount matches ✓
Client matches ✓
Auto-reconciled
Accounting Entry Created
| Account | Debit | Credit |
|---|---|---|
| 1000 - Bank (Wise EUR) | €3,500.00 | - |
| 1200 - Accounts Receivable | - | €3,500.00 |
Double-entry bookkeeping. Estonian-compliant chart of accounts.
Done!
Invoice marked as paid. Books updated. No action required from you. Xolo's accountants review at month-end.
Handling Expenses
Expense Transaction
Bank: Wise Business
Date: 2024-01-16
-€49.00
To: Notion Labs Inc
Reference: NOTION TEAM
Upload Receipt
Xolo prompts you to upload the invoice/receipt. Forward the email or snap a photo in the app.
Receipt Details
Vendor: Notion Labs Inc
Amount: $53.00 (€49.00)
VAT: N/A (US vendor)
Category: Software
AI Detection
Vendor recognized ✓
Amount extracted ✓
Category suggested ✓
Ready for approval
Accounting Entry
| Account | Debit | Credit |
|---|---|---|
| 6100 - Software Expenses | €49.00 | - |
| 1000 - Bank (Wise EUR) | - | €49.00 |
What Gets Automated
Fully Automatic
- ✓ Bank sync (Wise, Revolut, etc.)
- ✓ Invoice → Payment matching
- ✓ Recurring expense recognition
- ✓ Multi-currency conversion
- ✓ Standard journal entries
- ✓ Stripe/PayPal transaction import
Your Input Needed
- • Upload expense receipts
- • Categorize unusual expenses
- • Confirm large transactions
- • Provide context for cash transactions
- • Review monthly summary
- • Approve annual report
Month-End Process
What Happens Each Month
Previous month closes
Xolo's accountants review all transactions, ensure receipts are uploaded, and finalize entries.
Action items (if any)
You'll receive notification if receipts are missing or transactions need clarification. Most months: nothing to do.
Reports available
Profit & loss, balance sheet, and expense breakdown ready in dashboard. Download anytime.
VAT return filed
If VAT registered, Xolo prepares and files your quarterly VAT return. You review and approve before submission.
Sample Reports
Profit & Loss (Sample Month)
| Revenue | |
| Service Revenue | €8,500.00 |
| Total Revenue | €8,500.00 |
| Expenses | |
| Software & Tools | €340.00 |
| Xolo Service Fee | €99.00 |
| Bank Fees | €15.00 |
| Total Expenses | €454.00 |
| Net Profit | €8,046.00 |
Balance Sheet (Sample)
| Assets | |
| Bank Accounts | €24,500.00 |
| Accounts Receivable | €3,500.00 |
| Total Assets | €28,000.00 |
| Equity | |
| Share Capital | €2,500.00 |
| Retained Earnings | €25,500.00 |
| Total Equity | €28,000.00 |
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
