If you’re running your business on Xero, you probably assume your financial data is safe and secure in the cloud. After all, it’s one of the world’s leading accounting platforms, trusted by millions of businesses globally. But here’s what most business owners don’t realise: Xero doesn’t actually back up your data for you.

 

Did you know Xero doesn’t back up your data?

 

This might come as a shock, but Xero operates on a “shared responsibility” model. Whilst they maintain their infrastructure and keep the platform running, the responsibility for backing up your actual business data falls squarely on your shoulders.

 

Xero’s terms of service clearly state that they’re not responsible for data loss caused by user error, corruption, or even their own system failures. They maintain system redundancy to keep the service available, but if your data gets deleted, corrupted, or accidentally modified, there’s no guarantee of recovery.

 

Think about it: years of invoices, customer records, supplier details, bank reconciliations, and financial reports could vanish in an instant with no way to retrieve them.

 

Three reasons to back up your Xero data

 

1. Human error happens

 Accidentally deleting transactions, customers, or entire accounting periods is more common than you’d think. Without a backup, these mistakes can be irreversible and potentially devastating.

2. Cyber security threats 

Ransomware attacks and data breaches are increasing. If cyber-criminals gain access to your Xero account, they could delete or encrypt your financial data. A secure backup ensures you can restore everything quickly.

3. Compliance and audit requirements 

HMRC and other regulatory bodies may require historical financial records going back several years. If your Xero data is compromised, you could face serious compliance issues and penalties.

 

We can help you

 

As IT specialists, we’ve seen too many businesses learn this lesson the hard way. That’s why we offer automated, secure third-party backup solutions specifically designed for Xero users.

 

Our backup service runs automatically in the background, creating regular snapshots of your entire Xero database. Should anything happen to your data, we can restore it quickly and completely, minimising downtime and protecting your business continuity.

 

Don’t wait until it’s too late. Contact us today to discuss how we can protect your valuable financial data and give you complete peace of mind from £11 ex VAT per month per company.

 

 

 

WHAT DATA SHOULD BE PROTECTED?

 

When considering Xero backup, many business owners don’t realise the sheer volume of critical data at risk.

 

A comprehensive backup solution should protect all of the following:

 

Financial Records:

• Invoices (including attachments and history)
• Credit notes (including attachments and history)
• Bank transactions (including attachments and history)
• Bank transfers (including attachments and history)
• Purchase orders (including attachments and history)
• Quotes (including attachments and history)
• Receipts (including attachments and history)
• Manual journals (including attachments)
• Payments and over-payments (including history)
• Prepayments and linked transactions

Business Data:

• Contacts (including attachments, history, and CIS settings)
• Contact groups and currencies
• Employees and expense claims (including history)
• Projects, project tasks, and time entries
• Items and inventory tracking
• Tax rates and tracking categories

System Configuration:

• Organisation settings (including CIS settings)
• Users and branding themes
• Assets (including draft, disposed, and registered assets)
• Asset types and settings
• Invoice reminders and repeating invoices
• Folders, files, and file associations